Impact of American Taxpayer's Relief Act (ATRA)... "Portability"

One of the most significant changes associated with The American Taxpayer's Relief Act (ATRA) is that the "portability" of the federal estate tax exemption between married couples has become permanent and inflation-adjustable. 

While this is generally good news for married people (in 2013, a married couple can pass on up to $10.5 million to their heirs free from federal estate taxes), there are potential complications in situations involving second or third marriages.

Surviving spouses might also be required to file certain IRS forms, or run the risk of losing the deceased spouse's exemption.

Elder Law 2013 - Many Changes!

The American Taxpayer’s Relief Act (ATRA) of 2013 has brought about an new tax paradigm in which planning must focus on capital gains, asset protection, state tax issues, income tax issues and Medicaid planning, all of which fall under the elder law umbrella.  

This will create new challenges for families as well as estate planning generalists that are not experts in the elder law component of estate planning.

We attended this year’s Heckerling Institute for Estate Planning conference in Florida because, more so than ever before, the estate planning and elder law landscape has changed, having been impacted by a number of factors, including the ATRA and a continually-aging U.S. population  in which nearly 10,000 Americans turn 65 every day!

We will share developing perspectives about elder law in our upcoming posts based on the above-listed changes.