Author: Houston

In prior postings, I wrote about the Deceased Spouse’s Unused Exclusion (DSUE), and the unintended consequences of a reduced DSUE when a surviving spouse remarries. In today’s post, I’ll be writing more about Betty and Howard. You’ll recall that Betty’s first husband, Arnold, passed away in 2013, leaving $3 million to the couple’s children. Although…

In my last post, I explained how the Deceased Spouse’s Unused Exclusion (DSUE) can be “inherited” by the surviving spouse, helping to shield their heirs from federal and state estate taxes that can combine to exceed a rate of 50%. But what happens when a widow or widower with a DSUE remarries? The answer may…

Legislation enacted a few years ago (finally) set a $5 million estate tax exemption for 2011 and indexed it for inflation each year thereafter. This means that the exemption grows as costs rise. For 2015, the exemption is $5.43 million. Assets exceeding the exemption amount are subject to a hefty 40% federal tax, as well…