Say This ONE WORD After Your Spouse Dies
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- Опубликовано: 23 фев 2020
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In 2020, the federal estate tax basic exclusion amount is $11.58 million. In 2026, the federal estate tax basic exclusion amount sunsets back to about $6 million ($5 million adjusted for inflation).
The estates of people who died in 2020 are not required to file a federal estate tax return if their gross estate is less than $11.58 million. But it may make a great deal of sense for those estate to file the IRS Form 706 - even though they are not required to - in order to make the portability election.
This post is for informational purposes only and does not provide legal advice. Please do not act or refrain from acting based on anything you read on this site. Using this site or communicating with Rabalais Estate Planning, LLC, through this site does not form an attorney/client relationship.
Paul Rabalais
Estate Planning Attorney
www.RabalaisEstatePlanning.com
Finally found the “one word”. Portability. If you want to keep us interested, tell us PORTABILITY in the beginning. Then we will stay connected all the way through for the details. Please. The internet has taught us that intrigue is very short lived. People cut out if you don’t get to the point.
I fell asleep around 8 min! 😁 Effective presentations: tellem what yr gonna tellem (preview), then tellem (details), then tellem what u toldem (summary).
True,cut right out
As someone not super financially literate but with a good sized estate, I like your style. You say it...explain...then repeat it. I just gave my child $45k for a house. No idea what it means that I exceeded the annual limit. Think I just don't report it?
@Nancy Hollo Not true . . . The annual federal gift tax exclusion allows you to give away up to $16,000 each to as many people as you wish without those gifts counting against your $11.7 million lifetime exemption.
@Nancy Hollo But what you said is still not true. You can give gift $20,000 and it's all not taxable unless you reach the 11.7M threshold. $20,000 gifts are called taxable gifts because they exceed the $16,000 annual exclusion. But you won't actually owe any gift tax unless you've exhausted your lifetime exemption amount of 11.7M
8:47 Portability... for those who want to get right to the point...
Thanks. Literally got one minute in and already hit an ad. Wonder how often this is going to go on.
It took him 8 mins to get to the point? LOL
@@warwagon That's an attorney for ya
Yes… he’s lovely but a long talker 🤦♀️😊😊
@@LunaNosille Yeah, this guy is friendly and knowledgeable, but OMG does he TALK! 😮 Holy s#i+! He could've said everything he needed to say in this sixteen-and-a-half-minute video in about a third of that time.
Some people are so rude,they can go away if they don’t like how you deliver your free advice. Thank you for sharing.
So true!
Exactly!
They don't realize that he's trying to give them better knowledge of how to do things so that they don't get ripped off in the long run.
The word by itself doesn't benefit anyone unless they actually filed the estate election paperwork previously (when the first spouse died). I understand why he didn't just give the word it requires explanation.
But 95% of Americans don't need this! Quit thinking the whole of that audience has your wallet! This is for the highest of incomes only!
"A lawyer is a learned gentleman who rescues your estate from your enemies and keeps it himself."- Henry Peter Brougham. (1778 - 1868)
I ran an asset management company before I retired. I can tell you from experience as I had several clients who, as beneficiaries, had large estate tax bills because the deceased individual never visited an estate planning attorney. Naturally if you don’t have a large estate you may not require a sophisticated estate plan. On the other hand the exercise of forming an estate plan is well worth the cost of visiting with an estate planning attorney.
Makes sense to me!
@@richardkrochmal6028 True, but with loopholes constantly being closed, for example Generation Skipping Trusts closed years ago, the best way to escape taxes is perhaps the least likely to use a lawyer: simply spread your assets out with nominal owners that you intend to benefit after you pass away (but that don't really control anything while you are alive), it's the "Chinese" way of doing estate planning. A lawyer won't really help you here, but you need to have a high degree of trust that the nominal owners won't prematurely abscond with your assets before you die (best that they don't even know they are nominal owners; there are several ways they can be kept in the dark). A trust can do the same thing as above, but it's much more expensive.
Lol
Absolutely correct
The main thing people should learn from this story is to avoid attorneys who do everything. If your lawyer does real estate closings, divorces, litigation etc, dont let him handle trust and estate issues! They can make a complete mess.
I disagree with even the so call only "estate planners/elder law" yes they do everything & their name & firm's name is on every other page! I don't trust any of them far as I could throw them.
That's true. My divorce lawyer tried to put my ex to jail that was against my will. Fortunately, I read carefully the petition that he wrote to the court before signing it, force him to remove it. We had problem but would like to resolve it amicably. But lawyer promotes family fighting each other for max benefits to themselves. Be careful when dealing with lawyers!!!
When you need surgery you go to a specialist not your family doctor. Same when you have a legal issue.
I still think a trust is overrated. A will is fine for most people. I had do everything lawyer draft a new Testamentary disclaim trust pour over will. It’s not perfect but We’re going to spend down to close to zero anyhow before we hit in our 80s.
@@aslanabiz6344 Yes. The more drawn-out family disagreements the more work (Money) for the lawyer. I admire your independent and wise attitude.
I always heard that the best way to avoid taxes after death is to die penniless! So if you want to bequeath anything to your heirs, do it BEFORE you die, and spend down (and enjoy) yourself to the end!
You can put your assets into a foreign trust. Keeps greedy governments hands off your assets. Others too.
A judge once told me that 'ignorance of the law is no excuse'. This video shows that.....Thank you...
A Lawyer that can present a very involved and extremely complicated topic in a manner with such compassion and with such a "user- friendly" narrative creates the opportunity for a larger audience but it still might not be for everyone.
Find a little free time...Grab a beverage...kick back in your favorite chair and just enjoy listening.
Even if you did not absorb any benefit from this video I think it is unkind to be so critical...He chose to provid a LOT of expensive advice at NO CHARGE and he seemed to enjoy it. Thank you.
👏👏🌹👏👏
U said it!!
Exactly 💯
Nowadays so many people want freebies but they don't want to learn nothing. They wanted handed to him on a gallbladder and they don't care who they hurt.
Thank you!!! My husband died 2 months ago and a CPA friend mentioned this. Looking for some information I found your video and it was very clear. I appreciate it.
are you kidding in my family we fight over who gets the old junk out the shed and barn
Hahahahaha now that’s funny!
I’m telling mine the will is hidden in the house. Under the dust they tracked in.
LMAO!! Doris that is so true! You made my day.
Can't tell you how many times one side of my family had U-Hauls show up at the decedents' houses after the funeral.
@@billyoung8118 seriously? Wow that's disgusting! The way I see it that's when people show who they really are. If they need it that bad... Go ahead I won't be a part of that... Deal with karma.
The real lesson is to always use a lawyer who specializes in the area of law in which your issue lies.
“Long story short.........”
Use the Portability election on the Estate Tax Return when Barry dies.
Refer: Treasury Regulations Section 20.2010-1(c) (2) (iii)
Just to clarify.....when one makes the portability selection, do they have to pay ANY estate tax on estate of the deceased spouse at the time of this selection?
@@viking956 Nope. Pay attention next time.... man....
tell that to this guy
@@velvetpaws999 Be nice next time…. man….
@@velvetpaws999 WOW! Really? Sorry I caused you to get your panties all bunched up. Geez I thought it was a reasonable question but whatever dear.
Treasury Regulation Sect 20.2010-1 (c) (2) iii = Portability. Upshot is even if estate is below the exclusion threshold ($11.58M in 2020), file an estate tax return and elect ‘portability’ to avail of deceased spouse’s exclusion (year of death) in addition to your exclusion (year of death). You rock Mr. Rabalais!
Way to go PA 🤩
P
Short and sweet...thank you!
You never know, you could parley that small amount into a big windfall, and that exclusion could help when you pass away.
@@claudiamiller7730
Rabalais could have been equally short and sweet... but monetizing a 16 minute video was too tempting.
Good information...only a lawyer could draw it out soo long😁
Ha ha
and he bills you for the 15 minutes...
@@robertcasey No he rounds it up to an hour.
@@robertcasey probably right and the 15mins still cost the hour, dentist's are the same, pull a tooth £300 it only took 15mins, aren't professional people cute with the invoice 😂👍
As the family solicitor here's my advise to you
As the family solicitor here's what I'm going to do.
For six and eight (old English money) I'll put you straight if anything goes wrong, for I contend you must pretend that life is one sweet song,
So sing a little and dance a little regail a little and cry a little take your troubles more and more to the family solicitor,,
It's from the musical, me and my girl
❤️👍
Why am I glad suddenly that I’m poor and don’t have a million???
Portability! Now I have to find $12M! LOL Thank you Paul =)
Its not going to be 12M by 2026. It will be closer to 6M. If someone has a business or real estate or an IRA or 401K when combined with the surviving spouses' assets could easily get beyond that. Using the portability election will preserve that estate for other surviving beneficiaries.
☺️
Such a helpful video! “PORTABILITY “ is indeed a very important word to remember and for your family to also be aware of.
SO, PERHAPS YOU SHOULD TAKE YOUR TRUST PAPERS AND GO BACK TO YOUR LAWYER AND HAVE HIM UPDATE IT FOR A FEW HUNDRED DOLLARS. BUT IF YOU DON'T LIVE IN HAWAII OR MARYLAND, THEN WHAT THE FREAKS THE PROBLEM? IT ONLY APPLIES TO THOSE TWO STATES!
Don't have that kind of money...but always learning.....thank you so much!
I'm a teen and none of this applies to me but for some reason I can't stop watching😂 it's so interesting
good sign you should go into law!
I think it’s a good sign that you are a smart young lady and you realize there is a lot to learn in this world. Never stop learning! You never know how you will be able to help yourself, your family, or your friends some day far in the future, because of what you learned when you were diligently applying yourself. You go girl! Best wishes to you.
Tell your parents about it!! There are so many "hidden" assets sometimes, they might not even be aware of how much they have in assets. More importantly, we don't know what the tax laws regarding this will be at the time of their deaths!
You smart young person. Education is pivotal for success
You sound very smart lawyer. It is the same case with doctors , they don’t know a lot of things but they give medical advice and drugs that kills you
I now have watched several videos in this series. PORTABILTY is something I was not familiar with, and it could be highly critical ... with fluctuations in estate tax law. Thanks for explaining this excellently!
Pure Gold!!! And only because of the whole story I will remember this... Thank You!
You’re awesome at explaining these scenarios to us people that are ignorant to these types of things.
You sir must be much more patient than, I because all the way thru I kept thinking will you kindly get to the point!!!!
Wow! What a family lawyer! He helps with estate planning, divorces AND speeding tickets.
Thank you for another educational video. I hope lawyers, who practice is focused in other than Estate Planning, keep an eye on your channel. Not all lawyers (even in the same specialty) are created equal. I hired a lawyer to start the probate process of my relative estate, and he did not know ANYTHING about it, worse, he represented that he was capable of taking my simple case. I didn’t know any better, but things were not progressing and he kept telling me he was “researching”, so I grew suspicious. I went to a recommended lawyer for a second opinion, and the minute my appointment started, the lawyer began to ask all kind of questions related to the estate, was able to check what the other lawyer had been filed (which was nothing) and basically, she found nothing done related to my case. At that point, I hire her, but it cost me to pay the other lawyer $500.00 dls for nothing! I had to pay, because I had signed a contract for his services and could not get out of it, unless I took him to court, which would had cost me even more. At the end, the second lawyer, a Estate Planning lawyer, was so efficient and the process was a breeze. The lesson learned: Hire the right person for the job.
Hello how are you doing 😊😊👋👋😊👋
Thank you! I’m going through this literally right now as I settle my husband’s estate. Timing for me is perfect.
Should have filed a bar complaint
Always hire the right person for the job. In every profession there unknowledgable, lazy, troubled, competent individuals. If you hire a lawyer to represent you in court who had never done a trial, you made a mistake. If you hired a lawyer to do your estate planning in Miss. or LA before trusts (intervivos trusts) were taught in law school or before those states changed the laws and became community property laws, you made a mistake.
10% of the general population die with a will. Only 50% of the lawyers die with a will. Sort of suggests that most people procrastinate, make the assumption that they will never die or trust that other people will clean up the messes.
@@theylivewesleep4570 h
A death tax is cruel to do to people. Pay taxes all of your life then they still squeeze it out of you at the end.Greed
what? 11.7million dollars free, if you have it. A family will be fine with that amount. This country doesn't need a wealthy gentry.
And over 11.7 million, if you have it, you pay 40%. So if you have an extra million you keep 600,000! You keep it. Relax.
You work to increase your livability and you end up paying the government money that they didn’t work for. Really doesn’t give people incentive to improve their lot in life.
@8:40 Portability.... that's the one work. Y'all welcome. Only applies to estates for both spouses totaling $2M-$12M. File the estate tax whether you need to or not claim portability because you might win the lottery and your kids will need the tax break is my guess.
I loved the way you explained it. Many times people have tried to explain portability to me. Your method worked!
I really appreciated the details shared with this information. He did a great job making it relatable as well.
Thank you ... these vids are awesome. I am an attorney and even though these are targeted at non-attorneys, they still dig into serious topics. Love it. Thanks for the effort.
This and your other videos are so very helpful in navigating issues in the estate planning and financial spheres that I have not learned about from attorneys or financial planners!! Really appreciate your channel!!!!
l.p.
L.p.
nice to see you
One way or another the government will figure out how to get in our pockets! You made it passed the estate taxes, great, welcome to inheritance taxes!
Here is a hint, just don't talk to an attorney. If your estate is worth 1 dollar or 11 million, make sure you talk to an accountant or the person you file your taxes to make sure all IRS requirements are met if your spouse has died. No matter what you must submit a final tax return, basically to inform the IRS the taxpayer is no longer alive. The IRS doesn't know and will presume the person has failed to submit their yearly tax return.
How to have a million dollars and not pay taxes. First, get a million dollars......
😂😂😂😂😂😂😂
True, I’m only a thousandair, 😆
No non criminal pays estate tax
Look at Dave Ramsey's channel. You can be a millionaire. Don't live beyond what you make
@George Southwick
And if you live in the Western World, don't get the money given directly to you! Have the check made put to a corporation you control, otherwise you will only get to keep $325,000 and end up with the taxman taking the rest!
Don't need to believe ME! Just ask the first winner of the TV show Survivor! He won the million dollars then ended up in prison for income tax evasion!
In all honesty he thought they had paid the tax before he got his money like employers do....!
Whoo Boy... I'm only 11.375 million short of really having to start worrying about things. I can feel it building up already. 😎
Portability- got it! Don't think I'll have enough, as you say, 2+ million, but stranger things have happened! Thanks for the education! 🌞
I love how you explain everything so well and maybe for some it is not their cup of tea but I really can watch this multiple times myself. Thanks for posting!!!!
the reason you have to keep watching this multiple times is because he never gets to the point fast enough. Keep having to wake myself up.
Thank you for talking about this. I'm 73, my husband passed 16 months ago. He named his grown kids executors, thinking we might pass near the same time. Your video is the FIRST I've heard of portability. The kids hired a probate attorney who didn't ask about portability . They skipped it. NOW I'm having my CPA look into it. They do it automatically for their clients' surviving spouses. This is likely to be an issue for me (though there's a special 2-yr deadline I will proably qualify for). It's unlikely I'll have that kind of large estate when I pass, but who knows ... So, thank you!
Hello how are you doing?
This is an excellent tip, thank you. Making a note for our attorney.
These videos are EXCEPTIONAL! I have shared with a friend who has $ in that bracket. Me, not so much, but I still appreciate the knowledge!
im looking at receiving an estate in a few years and your videos have been very helpful for everybody to understand what is what and what the estate should look like. we all thank you.
Thank you for educating those of us that get confused on all the legal jargon!
Thank you for taking the time to explain everything so well .I hope you can ignore some of the negative comments
Hello how are you doing?
Damm, I have been looking for info like this for years. Your right on time with crucial information. Please don't stop making these informative video's.
Who knew?? This is great information. Thank you for getting the word out.
...eventually.
You are awesome! Your videos are easy to understand
. I look forward to watching all of your videos!
Great information…thank you for sharing your knowledge in a way the lay person can understand.
Thank you for giving us your time and expertise. I’m sorry some people don’t appreciate your kindness.
Thanks for explaining portability clearly. I’ve heard of that from my friend whose husband died recently.
Thank you for your video's and for breaking everything down so anyone can understand.
Non of this applies to me as I'm not American or live in USA but still love to watch you sir explain your laws. The simplicity of explanation is just Brilliant. Thank you for sharing your knowledge 👍
@Vin S Somebody should do this , in your country.
New sub here. I was unaware of the huge difference of exemption amounts from now until 2026, I think you said ”inflation adjusted ” which makes me think 2025 will be the year for minimized estate taxes of large estates because I don't think that we will be seeing negative inflation anytime soon. I would still rather have the people be alive though...
Thank you for posting this helpful video. You do a fabulous job on these.
By 2026 with the way inflation is heading, 6m will be just above the poverty line. I still remember when an $8,000 a year salary paid your bills, owned a new car and had no credit card debt living in New York. Albeit that was before the turn of the last century.
Awesome Video! Very intriguing to find out what the one word was. Your examples were real-life examples and worth listening to the end. Thanks for all you do to help us understand the laws and how to protect ourselves.
Great information but it took WAY TOO LONG to get there
great job Paul as usual, I agree a family lawyer whose business is built on versatility can't always be up on their game!!
Awesome work you are doing!
Thankyou. Very helpful. As my adult daughter has said...”I wish I had been born with the wisdom I die with”
Thank you. My husband died in 2020. I will definitely be doing this even though the return is late.
Keep doing these videos! I keep learning and get inspired!
For all those people moaning about shortening the video, how confident are you that 95 % of the viewers, in their wretched throes of grief, will recall and understand what this man kindly shared with us if instead he shared a few terse sentences. He needs to make an impression that will survive your grief.
@mary, good point. And also, think of money he could be saving them.
Sounds like a great reminder to put into a will! Thanks!
One problem with wills: they mean nearly nothing if the executor doesn't bother reading it or is in cahoots with the lawyer that prepares it.
Parents wanted several charities to get a little bit of money (total ~$3000) which they had and most siblings agreed. Executor was oldest brother and didn't agree, told lawyer to ignore any directive other than "equal" split of estate.
Guess who got the house and land? Too sad it ended up being sold at a loss.
Incredibly valuable information. Thank you!
Thank you for sharing your knowledge. Your a very cool guy. Making a grim topic fun is not a small talent.
Awesome content. Thank you. Do you do taxes and estate planning for those in other states?
Wow-Thank you, was not aware of this!
Great info my friend,keep the good word going.
Paul, that was a great video. To the audience. Yes this is a long video with a story to get to the main point. But it's worth every moment if you are needing to do an estate plan. If you don't have the discipline to keep focus then you probably don't need to learn this anyways.
Very, very valuable information. Thank you!
i have just found out i need to get my affairs in order and sumbled upon your videos, thank you for the valuable information
Thank you very much for your time and efforts. I learned something when I watched your videos. Really appreciated it!
Thank you so very much Mr. Rabelais for information you are giving. I’m sure that there are people you are helping to save them unneeded stress.
Hello how are you doing?
nice to meet you one's again
What about us regular folk? We may be worth 1 million but no where near 6 million.
You will have no estate taxes. He said taxes begin if you earn more than 6 million. Your heirs can keep it all.
Great information! Thank you very much for sharing. 👍🏾
Thank you a very educational information. Keep up the good work ❤
Wasting 12 of 16 minutes in redundancy is pathetic.
Getting paid by the word?
Thank you. Your educational videos provide a great service and I hope you take pro bono credit in some way for this work. Some commenters here attack IRS in response to the information you provide, but IRS simply implements laws made by elected Congress members and courts. Taxes are necessary, but corrupt, disingenuous, overcomplicated tax laws, are not. It might help relieve current confusion and division to discuss how a much-simplified tax code might affect our lives, and perhaps reduce waste, political vulnerability and confusion, and hidden tax law inequities now burdening all of us, lawyers included.
Thanks for the lengthy explanation this is perfect explanation. 🙏🏼😍
Great show esp for senior citizens. Thank you
Very good info. Thank you for your work. Constructive criticism: Way too wordy. This 16 min video could have easily been a 5 minute video.
The timing on the video was perfect. This is an extremely complex topic, and the practical examples stuck in my mind. Given the audience, this subject matter was broken down so that someone without a knowledge of the tax code can understand it. I just do not understand why people are so compelled to constantly criticize and find fault with everything.
Some of us will need to listen 3 or 4 times.
Lawyers are used to working by the hour
Sooooo….Bottom line, if I understood your discussion, if your spouse dies you should ‘always’ complete an estate form with the ‘portability’ option.
The only negative would be you are paying for the form to be completed by your lawyer. Correct?
Great video thx!
Thank you for your informative and educational blog. Bless you. 😊
Great to know! Thank you for that important information.
This example may further assist some with their estate planning.
My wife and I have total assets of about 3.6 million. In that, I have about 1.6 million in Vanguard IRAs and wife has 0.9 million.
We were each listed as primary beneficiaries and our 2 sons were listed as secondary. We just changed that so our sons are also listed as joint primary beneficiaries, 40/40/20 split of my account and 35/35/30 for her account. If they just inherited after we both pass, they would have to take distributions within 10 years, likely pushing them into predatory tax brackets. As beneficiaries, seems they can spread out RMDs based on their own estimated longevity; hopefully taking out more depending on how much room there is on the up-side of their current tax bracket. Leaves plenty for surviving spouse and accelerates transfer of wealth to our sons (and unlikely even after further growth to exceed the tax exclusion levels you discussed).
Could you or have you addressed time shares. The into perpetuity clause has me sleepless. We have two sons and to saddle them with this obligation is making me crazy. Could you expand preferably how to get rid of it before our deaths. Neither child wants or can afford it. Thank you
woiuld love to have an estate that big to have this problem, thanks for the info, subscribed
Sounds like rich people problems.
Great information! So glad to learn this.
Enlightening. Much appreciated
Thank you, thank you! You are sharing your extensive knowledge so selflessly with the rest of us. God Bless you!
Thank you kind sir!!!!❤️
Hello how are you doing 😊😊👋👋😊👋
WOW, just WOW.... You really know your stuff. Great video. Thanks
Great video and information, thank you for sharing.
When you don’t have anything like me ...You don’t have to worry about that
I know what you mean.
@@alma1777 God Bless you 💕
I'm glad I found your channel.
Hi nice meeting you again I lost your contact
THANK YOU FOR ALL YOUR VIDEOS...WOW !!!!!!!!!!
That is such a complicated procedure with every chance of being missed - as per your example - thank God I live in Australia where we don't have anything quite so tricky as this to contend with.
Valuable information - especially once the government lowers the exclusion amounts (as they want to do).
Could have cut this down dramatically, couldn’t wait till the end!
Yeah I agree. If any of my lawyers took this long to answer a simple question I would lose patience and get another lawyer. This was painful to watch while he repeats I'm sorry so and so died 3 times while rambling on and on.
I felt that one must file even if no taxes were due but I did not ever dream the advantages of doing so,
Hello how are you doing?
Yes, I have millions in my estate. No , I am poor, so I do not have to worry about someone fighting
for my assets. Thanks for the valuable advise. Keep up the good heart called : sharing.
You are talking way above anything we have....