WHAT IS ESTATE TAX PORTABILITY?
In simple terms, portability of the federal estate tax exemption between
married couples means that if the first spouse dies and the value of the
estate does not require the use all of the deceased spouse's federal
exemption from estate taxes, then the amount of the exemption that was
not used for the deceased spouse's estate may be transferred to the
surviving spouse so that he or she can use the deceased spouse's unused
exemption plus his or her own exemption when the surviving spouse later dies.
How often do you get a second chance at millions of dollars in tax savings?
Not often! But on June 9, 2017, the IRS issued Revenue Ruling 2017-34,
which will provide many estates a second chance to preserve an otherwise
lost estate tax exclusion of $5 million or greater.
If you or someone you know is the surviving spouse of a U.S. citizen who
died after December 31, 2010 and failed to file an estate tax return by
the due date (including extensions) to elect “portability”
of the deceased spouse’s estate tax exclusion, take note! The IRS
has granted certain qualifying estates an extension of time to make the
election until the later of January 2, 2018, or the second anniversary
of the decedent’s death. For many surviving spouses, this means
a second chance to increase his or her estate tax exemption to as much
as $10,490,000 or more.
For additional information…
on Revenue Ruling 2017-34, the portability election and filing of estate
tax returns, please contact Morris Sabbagh, Esq. at 516.437.4385, ext.
120, or email him at