PRSRT STD US POSTAGE PAID BOISE, ID PERMIT 411
201 Townepark Circle, Ste B-1 Louisville, KY 40243 FOLLOW US!
INSIDE THIS ISSUE 1 Today’s Tactics, Tomorrow’s Triumph 2 Ways to Win the Retirement Race Riffs, Riches, and Ruin 3 Tax Time Trickery Cheesy Tomato-Basil Stuffed Chicken 4 Secrets to Spousal Stability
MAXIMIZED MARITAL MAGIC THE ART OF UNLIMITED DEDUCTIONS
Devising the best estate plan to provide for those dearest to you can be emotionally and logistically challenging, even under the clearest circumstances. However, this process can be even more difficult due to the critical terms, conditions, and laws that could determine the strength or weakness of how your wishes are carried out upon your passing. To make things a little easier, here are the basics about the “unlimited marital deduction” and how it influences what one spouse The unlimited marital deduction enables a spouse to transfer unlimited assets to another tax-free. You derive this deduction by subtracting the total amount of assets from the gross estate, which must be distributed according to a will. Estate taxes on transferred assets are delayed until the recipient spouse’s death. The spouses must be legally married U.S. citizens to qualify for this deduction. receives from another. TAX-FREE TRANSFERS
SAFEGUARDING A SUSTAINED LEGACY If an individual wishes to have a say in what happens to their assets after their surviving spouse passes, they can set up an irrevocable Qualified Terminable Interest Property (QTIP) Trust that will still provide for the surviving spouse but outline beneficiaries upon their death. Because this trust is irrevocable, it can't be altered by anyone, including the surviving spouse. CITIZENSHIP EXCEPTIONS Although establishing the unlimited marital deduction is straightforward for American citizens, pursuing similar options for non-citizen spouses is more complex but not impossible. First, a U.S. citizen can gift money to their non-U.S. citizen spouse. In 2024, the maximum amount not subject to gift taxes was $185,000. Another option would be to establish a Qualified Domestic Trust (QDOT), which allows the non-citizen spouse to take advantage of the unlimited marital deduction so long as they are
the sole beneficiary and at least one trustee is a U.S. citizen or an American corporation. Naturally, the conditions outlined in this brief overview are subject to a host of what-ifs that may affect the specific outcome of your situation. Working with skilled financial planners familiar with these nuances is essential to secure your spouse’s well-being and satisfy tax obligations when the time comes to implement your estate plan.
4 ∙ www.Roberts.cpa
Made with FlippingBook Ebook Creator