The Tax Management Transfer Pricing Report ™ provides news and analysis on U.S. and international governments’ tax policies regarding intercompany transfer pricing.
By Richard M. Schwartz, Esq., and Justin C.
Pepper Hamilton LLP, Philadelphia, PA
When Congress early in 2013 enacted the new estate tax
provisions making the $5 million inflation adjusted federal estate,
gift and generation-skipping transfer (GST) tax exemptions
"permanent," it also made the concept of portability permanent.
Portability is a welcome addition to the estate tax laws because it
eliminates a common trap for the unwary couple by allowing a
surviving spouse to use any unused federal estate tax exemption of
the predeceased spouse. This allows the couple to hold their
assets as they wish without the need to separate assets into "his
and hers," and it may avoid the need for complicated trusts, which
some clients do not prefer. The unused exemption inherited by the
surviving spouse is referred to as the deceased spousal unused
exemption (DSUE) amount. While portability offers a safety
net for a married couple who did not engage in traditional estate
planning, did not wish to use trusts for a surviving spouse, or did
not wish to separate their assets during their joint lives,
portability does have some disadvantages that the traditional type
of planning with marital and nonmarital trusts does not:
Most estate plans that were drafted for married couples prior to
2011 were drafted with traditional marital and nonmarital trusts as
well as complex generation-skipping trusts. If simplicity is what
you are looking for, portability can provide it. However, we urge
every client to have a full discussion with their tax advisor about
the advantages and disadvantages that the new exemptions and
portability provisions have brought to the estate planning
For more information, in the Tax Management Portfolios, see
Pennell, 843 T.M., Estate Tax Marital Deduction, and
Streng, 800, Estate Planning, and in Tax Practice Series,
see ¶6350, Estate Planning.
© Pepper Hamilton LLP
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)