As I have previously discussed, the American Taxpayer Relief Act of 2012 (ATRA) had many implications on estate planning. One trend that is being seen as a result of the ATRA is a shift away from formula-based estate planning for married individuals. The ATRA made portability permanent as well as increased the amount for exclusions. With the additional considerations created by portability and the potential for step-up basis, formula-based plans are becoming less likely to be used as an automatic standard.
See Charles A. Redd, Death of Formula-Based Estate Planning, Wealth Management, Sept. 10, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
