Tuesday, June 27, 2006

Barron's weighs in also

While we're on the subject of media coverage of trust planning, Barron's ($) offers Playing it Safe, a review of the utility of bypass trusts, as well as the income tax traps that may be sprung when couples own their property jointly.

1 comment:

JLM said...

By running this column, is Barron's expressing the opinion that PETRA (the Permanent Estate Tax Relief Act) doesn't stand a chance? Certainly John and Mary, a couple with $5 million, would have no tax worries if Petra passed.

Interesting, though, to note that John is Old School. No estate-splitting with spouse. Wouldn't be caught dead in a Community Property state. If John leaves $2 million in a bypass trust, Mary's estate will be no more than the $3 million that passes to her via the marital deduction.

PETRA question: Imagine John has more than $10 million. Now imagine Mary dies tomorrow, on her way home from a Jeb Bush for President rally. If PETRA passes this year, would John's estate later be able to claim Mary's unused exemption as well as her own?

What if Mary died after PETRA passed but before 2010?