Estate Tax Planning Simulator
Compare two scenarios: no planning versus electing portability and the marital deduction. The difference shows the value of the post-death elections that many simple calculators ignore.
Estate Tax Planning Simulator — Calculation Summary
| Input / parameter | Value |
|---|---|
| State | New York |
| Taxable estate | $12,000,000 |
| Married | Yes |
| Result | |
| Scenario A — no planning | $1,386,800 |
| Scenario B — with planning | $1,386,800 |
| Tax saved with planning | $0 |
| Percent reduction | 0% |
Source: Federal: IRC § 2010; State: N.Y. Tax Law § 954 (cliff: estate > 105% of exemption loses it entirely); 3-year gift lookback (2026).
This is an informal planning estimate only, not legal or tax advice. Confirm all figures with the IRS, your state Department of Revenue, or a licensed estate attorney or CPA before relying on them.
Scenario A — No planning
Scenario B — With planning
Scenario B models electing portability (DSUE) of the deceased spouse's unused $15M exclusion and the unlimited marital deduction — the two levers most simple calculators ignore. A credit-shelter (bypass) trust can lock in the savings. State amounts are model estimates.
Informal estimate only — not legal or tax advice. Figures cite federal statute (IRC § 2010, OBBBA 2025) and each state's Department of Revenue. Tax laws and exemption amounts change yearly; confirm the current rule with the IRS, your state agency, or a licensed estate attorney or CPA before relying on any number.
How this calculator works
Calculation method & sources
- Marital deduction: IRC § 2056 permits an unlimited deduction for property passing to a surviving U.S.-citizen spouse, deferring tax until the second death.
- Portability (DSUE): IRC § 2010(c)(5). The surviving spouse can add the deceased spouse's unused exclusion, raising the combined federal shelter to $30M in 2026.
- State rules: Each state’s estate tax rules are sourced to its Department of Revenue or statute. Some states (e.g., Massachusetts) do not recognize portability, making credit-shelter trusts more important.
How to interpret your estate tax planning result
- Scenario A is intentionally pessimistic — it shows what happens if no elections are made.
- Scenario B shows the savings from two automatic or election-based benefits: the marital deduction and portability.
- The “tax saved with planning” is the minimum a married couple should capture; advanced planning (bypass trusts, ILITs, gifting) can save far more.
- If you are single, Scenario A and Scenario B will usually be identical because there is no spouse to receive the marital deduction or DSUE.