1. Is the amount that is portable adjusted for inflation?

(A) Yes, it is indexed annually by COLA of approximately 2.2%.

(B) No, only the surviving spouses own exemption amount is adjusted for inflation.

2. What is the maximum amount that can be ported to Husband #2 if the DSUEA of deceased Husband #1 was $2.0 million and his wife remarries in 2013 to Husband #2 with her full exemption amount of $5.49 million available when wife dies in September 2017 and leaves everything to Husband #2, except for $1 million to her children?

(A) $7.49 million

(B) $6.49 million

(C) $5.49 million

3. Same facts as Question 61, but what if Husband #2 has made significant lifetime gifts of $3 million to his children from a prior marriage, how much applicable credit will he have if he died in December 2017?

(A) $7.49 million

(B) $8.49 million

(C) $2.49 million

Please only answer if you have a strong understanding of Estate Planning.

Please provide an explanation for how you arrived at your answer.