Optimize for State Death Tax

When "Optimize for State Death Tax" is changed to "Yes" and the selected domicile imposes an estate tax, QuickView will fund the Nonmarital Trust at the first death with the greatest amount that can pass free of the state death tax at the first death, rather than the greatest amount that can pass free of federal estate tax.

For states that include lifetime gifts in their estate tax calculations, the state exclusion amount is reduced accordingly.

Funding the Nonmarital Trust with the state exclusion amount, rather than the federal applicable exclusion, can be a desirable tax strategy if the estate of the surviving spouse is likely to pay little or no federal estate tax due to federal "portability" of the " deceased spousal unused exclusion amount" and so the goal is to avoid any state death tax at the first death and minimize state death tax at the second death.