Solving a Common, Common Law ProblemSolving a Common, Common Law Problem

Charles Harris, partner, and Philip J. Tortorich, associate, Katten Muchin Zavis Rosenman, Chicag

As estate planners, we often are called upon to prepare estate-planning documents for married couples. The planning can take many forms, but often includes a will and revocable trust for the husband and wife. The revocable trust serves as the main dispositive vehicle.

For U.S. citizens who are still married on the day they die, the estate tax treatment of assets in the revocable trust differs dramatically depending upon where the decedents resided. That's because in the nation's eight community property states — including California and Texas — each spouse has a present one-half interest in property acquired (other than by gift or inheritance)...