Friday, February 2, 2018
The Northern Trust Company’s Paul S. Lee gave one of the more memorable presentations at the 2018 Heckerling Conference. His discussion focused primarily on the need for planners to manage tax basis as part of the overall estate planning process. Lee equated the applicable exclusion amount to being “free basis,” as those assets covered by the exclusion receive a step-up in basis while remaining free of the federal estate tax. Because of this, he recommends reserving the use of the applicable exclusion only to those instances where there is some chance of the exclusion being lost. A prime example of such an instance would be immediately prior to the expiration of the current exemption thresholds.
See Jordan Smith, Managing Tax Basis in Estate Planning, Wealth Management.com, January 25, 2018.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.