Question

Sharon wants to make sure that she makes full use of the applicable estate tax credit upon her death but also wants to make sure that her husband, Oswald, has access to her property. Which of the following would you recommend?

a. True
b. False

Answer 1

Sharon might use a trust or take advantage of the unlimited marital deduction to ensure her estate tax credit is fully utilized and her husband maintains access to her property. Consulting an estate planning attorney is vital for tailoring her estate plan properly.

Step-by-step explanation:

Sharon is looking to maximize her estate tax credit and ensure that her husband, Oswald, has access to her property after her death. One strategy she could consider is creating a trust, such as an AB trust, or a bypass trust, that would allow her to take advantage of the estate tax exemption while providing for her spouse.

Moreover, Sharon could utilize the unlimited marital deduction, which allows for the transfer of any amount of assets to her spouse tax-free at death, assuming the spouse is a U.S. citizen. However, it is crucial for Sharon to consult with an estate planning attorney to consider all options and decide on a strategy that is tailored to her specific situation and objectives, including considerations for the estate tax laws.