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 Parameter Lock.
- 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.
Sign up free to see the explanation and track your rank →
More Certified Financial Planner Estate Planning practice
- What percentage of the conversion will be subject to ordinary income tax?
- Which stage of the Transtheoretical Model best describes the Ainsleys?
- What is their maximum Section 199A deduction?
- For 2026, what is the maximum amount Ainsley can transfer directly to a public charity whi
- What amount of gain is excluded from tax under Section 121?
- What is the niece's recognized gain or loss for tax purposes?
- What is his QBI deduction for 2026?
- If they convert $20,000 to a Roth IRA in 2026, how much of that conversion is taxable?