hard · Certified Financial Planner Estate Planning
Elena Langford is choosing between electing portability to claim Arthur’s 9,000,000 DSUE or disclaiming 9,000,000 into a Credit Shelter Trust (CST) for her benefit.
Which statement correctly identifies a binding constraint or trade-off in this decision?
- Portability shelters both Arthur’s 9,000,000 and all subsequent growth on that amount until Elena’s death.
- A Credit Shelter Trust is only available if Arthur’s gross estate exceeds the 15,000,000 2026 current IRS figures.
- Portability is superior because it also transfers Arthur’s unused Generation-Skipping Transfer (GST) tax exemption to Elena. In this case
- The Credit Shelter Trust (CST) shelters future appreciation from Elena’s estate but forfeits a second basis step-up at her death.
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