Reply To: Gift & Estate Tax Question

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Kaye Thomas

Credit would be for $5 million. In your example, the decedent didn’t take advantage of the higher limit while it was in place, so it ends up having no effect.

It seems like you want someone to be able to use part or all of the top half of the $10 million first, so the original $5 million would be preserved after the amount drops back, but that doesn’t fit the statutory scheme at all. You have to use the bottom half first.