Questions about the new federal estate tax legislation?

We’re here to help. The recent changes to the federal estate tax law make this the perfect time to review all existing estate plans. The new tax rules establish an increased estate and gift tax exemption amount of $5 million.åÊ The rules also now allow for “portability” of the exemption, which means that if the first spouse does not need to use his or her full exemption of $5 million, the second spouse may use the remainder of the exemption in combination with his or her own personal exemption. While these changes allow for greater tax-free transfer of assets at the federal level, they do not affect estate taxation at the state level. The Maine estate tax exemption remains at $1 million and Maine does not recognize “portability” between spouses. Many current estate plans do not factor in this increased $4 million gap between the federal and state exemption amounts so it may be necessary to revise your estate plans to take full advantage of these tax provisions.