With the automatic portability in 2011 and 2012, many estate planning attorneys have turned away from using Bypass Trusts for married couples.  The Bypass Trust allows for the surviving spouse to utilize the full estate tax exemption amount of the deceased spouse when distributing assets after the death of the surviving spouse.  Basically, it allows you to double the amount you can pass to your children tax-free.  Automatic portability also allows this but the portability is something brand new and may not survive past 2012, when it is currently due to expire.  If that alone isn’t enough reason to continue utilizing the Bypass Trust, it should also be pointed out that the use of automatic portability requires the filing of an estate tax return.  Even if the surviving spouse doesn’t need to pay any estate tax to the Federal Government, the cost of filing the return might still be very significant.  The non-use of the Bypass Trust is not only irresponsible but also bordering on legal malpractice.

For more information on successful Florida estate planning and probate techniques, please contact the South Florida law firm of Wild Felice & Pardo, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation.  It’s a Wild world.  Are you protected?