AB Trust or Exemption & Portability?

[kingdomsa]

What is the name of your state (only U.S. law)? Texas

56 year old husband finds he has cancer and will die before 2011 ends. Family estate has about $10million in assets split between moderately appreciated houses, mutual funds/equities, after tax cash, before tax cash (401k), and insurance.

Question 1: Should husband create AB Trust or leave his assets to his wife who will claim his $5mil exemption via portability?

Question 2: on $5mil exemption and portability: when husband dies, is $5mil exemption and portability 'locked-in'? E.G. can law modification change the dead husband's exemption amount and portability?

Question 3: Will AB Trust provide step-up in basis?

Thanks in advance.What is the name of your state (only U.S. law)?

 

[tranquility]

Seriously? Not only are you going to have to pay for that information, you may have to go to a couple of different experts. Both an attorney and a cpa, each with special experience in trusts and estates. After that, there is the matter where each answer given can be no more than a guess based on no facts including knowledge of goals.

1. I don't know. Maybe. A lot of people still do--in case.
2. Ohhh..the in case.
3. Depending on how things are set up.

 

[TrustUser]

a lot depends on future law changes. few things change more often than estate tax laws.

what is true of survivor's estate today is not guaranteed tomorrow.

there may be some exceptions of which i am unaware, but as a general rule - assets that are transferred into the deceased trust get stepped up as of the date of the deceased. however, that basis remains when the second spouse dies.

so i tend to steer towards placing non-growth assets in the deceased trust.