Accounting Articles > Estate Planning:

What is splitting the estate?

Splitting the estate basically means that each individual member of the marriage has their own estate.

This means that the estate tax credit, below which you are not subject to estate taxes, simply doubles. This also means that the assets must be split up. In other words these particular assets are titled into his name only, and those are titled into hers. Both have individual wills. So when one passes, the estate is probated and the assets are distributed.

Why is this important? Everything over the individual tax credits are taxed roughly in the 55% range. Doubling the credit saves enormous amounts of money.

If you are asking this question in the first place, then its probably time for a new accountant. Call our offices today. As highly recommended tax accountants practicing in the Chicagoland Area, we have the experience to help you and your company. Call or e-mail one of our specialists today.