People in North Carolina might be aware that the death of George H. W. Bush, the former president, occurred just eight months after the death of his wife, Barbara Bush. The two were married for decades. It is not unusual for spouses who are married for a long time and who have a close marriage to both die within a short time period. While it is likely that the Bushes were careful in their estate planning, the death of both spouses in quick succession can cause some issues.
What happens to an estate plan if both spouses die
What to know about federal estate tax laws
Those living in North Carolina or any other state have the right to gift up to $11.18 million without any estate tax implication. The exemption amount was increased from around $5 million as per the Tax Cuts and Jobs Act (TCJA). However, the exemption is planned to return to the old limit when 2025 comes to an end. Therefore, it is important to consider how to take advantage of the new rule while anticipating a potential clawback in 2026.
