Her first spouse was a black South African policeman, who she divorced because of his violence.
But having no trust at all might waste the first spouse's state exemption.
The just-enacted tax act includes a provision to help save the exemption equivalent of the first spouse to die.
In such an estate plan, there is no estate tax at the death of the first spouse to die.
Most wealthy married taxpayers set aside the amount exempt from estate tax into a trust when the first spouse dies.
Funds in the bypass trust are covered by the exemption amount and are not taxed when the first spouse dies.
It aimed to preserve the estate-tax exemption of the first spouse to die, while making sure the survivor had enough to live on.
He is her third husband -- her first spouse was killed and her second marriage annulled -- and together they are raising three children.
The exemption equivalent of the first spouse to die is wasted.
When the first spouse dies, everything goes to the surviving spouse, who can keep the assets outright or, within nine months, "disclaim" some to fund the trust.
Once the other spouse files for retirement benefits, the first spouse, as long as he or she is at least age 62, can file for Spousal Benefits.
FORBES: The Social Security Spousal Benefit - Further Explanation
Unfortunately, this doesn't work well if the first spouse to die doesn't have enough of the right kind of assets in his own name to fill the trust.
The standard plan in this asset range aims to preserve the estate-tax exemption of the first spouse to die, while making sure the survivor has enough to live on.
This sentimental approach can undermine a common trust strategy designed to preserve the estate tax exemption of the first spouse to die without leaving the survivor short of funds.
Do you think that a generation from now we'll be having entirely different conversations, hopefully a first spouse - first man, perhaps I don't know what you'd call him, perhaps a first gentleman.
That means that if you have a cookie-cutter plan that automatically funds a bypass trust for the full federal exemption at the death of the first spouse, you could incur unnecessary state taxes.
If, however, you live in a community property state and hold property jointly, at the death of the first spouse the entire property is stepped up in basis--meaning it can be sold immediately without gains tax.
If you own property jointly and don't live in a community property state, at the death of the first spouse the half of the property he owned gets stepped up in basis to its current market value.
With a Clayton Q-Tip, those assets that are picked to fund the first spouse's estate exemption are put into a bypass trust, which can give the surviving spouse more control over the assets than if they were left in the Q-Tip.
The last time the surtax was around, some couples tried to plan around it by having some assets taxed in the estate of the first spouse to die and some taxed in the estate of the second spouse to die, says Kaufman.
At the death of the first spouse a chunk of his or her assets--equal to the exemption amount--would go into a "bypass" or "credit shelter" trust, with the rest going directly to the surviving spouse, who can inherit an unlimited amount free of estate tax.
Suggestion: Amend your will to make all other bequests contingent upon a certain amount going first to your spouse.
Some newer laws say everything will go first to the spouse, then to children, parents and siblings.
Most states have a pecking order of relatives who can make decisions for you: usually your spouse first, then your adult children, your parents and finally your siblings.
For all of the technology that's out there, though, some experts recommend taking a very basic first step when one spouse suspects another of financial mischief.
Restricting innocent spouse claims to the first two years of this long ten years seems at odds with the purpose of the innocent spouse statute.
Suleyman Sumer says he was forced to bring home a second spouse after his first failed to produce a son.
ECONOMIST: Why a strong tradition persists in defiance of the law
Under the old rules, determining your mandatory payout rate involved making irrevocable choices based on messy guesses, such as which spouse would die first.
The death of a spouse is the first most common factor associated with a transition from owning to renting, according to the report.
FORBES: Very Old Folks At Home: Even At 95, Majority Still Live In Homes They Own
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