There is a new paradigm in estate planning.
The new law increases the estate tax exemption to $5.34 million per person and $10.68 million for a married couple. Portability of the deceased spouse unused exclusion (DSUE) has been made permanent in theory.
Estate planning is now changed for estates above the $5.34 million threshold,
Updating credit shelter trusts to maximize step-up in basis and provide broad flexibility in tax planning upon death of the first spouse should now be a priority for most married couples. Widows and widowers who are beneficiaries of a credit shelter trust may need to consider distributing assets out of the trust – assuming the trust allows for this – or decanting the trust to a more flexible trust if it does not.