Which term best describes a will that is designed to optimize tax outcomes for an estate subject to taxes?

• A. Tax-Wise Will
• B. Portable
• C. Taxable Estate
• D. Unified Gift and Estate Tax

Answer: (A)

A will that is designed to optimize tax outcomes focuses on tax efficiency in transferring assets, making choices that reduce the estate and gift tax burden within the law while still carrying out the testator’s wishes. The best term for this idea is the one that explicitly conveys being crafted with tax considerations in mind, hence a “tax-wise” will. It suggests deliberate use of strategies like allocating assets to marital or charitable gifts, taking advantage of available exemptions, and structuring distributions to minimize taxes paid by the estate and beneficiaries.

The other concepts are related to taxes but do not describe a type of will. Portable refers to a deceased spouse’s unused federal estate tax exemption that a surviving spouse may use, which is a planning concept rather than a designation for a will itself. Unified Gift and Estate Tax is the overarching tax system combining gift and estate taxes, not a descriptor of a will. Taxable estate is the value of assets subject to tax after deductions, not a type of testamentary instrument.