Our clients’ estates have always benefited from a step up in basis at the time of death. This means that assets included in client estates can receive a basis which is equal to the fair market value at date of death. This can be very beneficial for clients whose assets have appreciated significantly, such as with appreciated securities and real estate investments subject to depreciation.
Because a step up in basis can be so beneficial, BHMK has devised a method to enable the assets that are in both husband’s and wife’s trusts to receive a step up at the death of the first spouse for all assets, as well as a step up at the passing of the second. This approach can be especially valuable for estates that are less than five million dollars in value and enables clients to receive full income tax advantages with substantially reduced risk of federal estate taxes.
In order for the double step up to occur, specific language needs to be included in each trust and the two trusts need to be funded with assets owned by the married couple so that these assets will be subject to the double step up benefit.
In consultation with an experienced financial advisor in our community, BHMK has been informed that we are one of the few law firms to be doing such planning for our clients
Should you have questions or interest in discussing your estate planning needs, please contact one of our experienced estate planning attorneys to determine the plan that will best fit your needs.