Morris Law Group


How does simplified trust planning through portability work?

The current federal portability provision has given rise to a more simplified approach to trust planning. The portability provision allows the first spouse to leave all of his or her assets to the surviving spouse.

Often, clients who implement this simplified approach work with a joint trust established by both spouses rather than two separate trusts. The advantage of this is that the entirety of the couple’s assets—those left by the deceased spouse and those of the surviving spouse—will receive a basis adjustment at the surviving spouse’s death.

** Disclaimer Required by IRS Circular 230** Unless otherwise expressly approved in advance by the undersigned, any discussion of federal tax matters herein is not intended and cannot be used 1) to avoid penalties under the Federal tax laws, or 2) to promote, market or recommend to another party any transaction or tax-related matter addressed.

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