Two part question What is the maximum amount that can be “ported” to Husband #2
ID: 2719711 • Letter: T
Question
Two part question
What is the maximum amount that can be “ported” to Husband #2 if the DSUEA of deceased Husband #1 was $2.0 million and his wife remarries in 2013 to Husband #2 with her full exemption amount of $5.43 million available when wife dies in September 2015 and leaves everything to Husband #2, except for $1 million to her children?
(A) $7.43 million
(B) $6.43 million
(C) $5.43 million
Same facts as about question, but what if Husband #2 has made significant lifetime gifts of $3 million to his children from a prior marriage, how much applicable credit will he have if he died in December 2015?
(A) $7.43 million
(B) $8.43 million
(C) $2.43 million
Can you provide a detailed explanation for your answer? Please only answer if you have a strong background in estate planning.
Explanation / Answer
1.
When wife dies in September 2015, She transferred $1 million to her children. Hence she has used $1 million of her exclusion amount. Balance amount that can be ported to Husband 2 = $2 million + $5.43 million - $1 million = $6.43 million
Answer is (B) $6.43 million.
2. Answer is (C) $2.43 million.
He has transferred $3 million to his children. Thus, he has used $3 million of his $5.43 million exclusion amount.
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