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Tax Act's Portability Feature Lets Surviving Spouse Use Predeceased Spouse's Estate Tax Exemption

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act (the "2010 Act") enacted a "portability" feature; it lets a surviving spouse take advantage of any unused estate tax exemption of a predeceased spouse. (2010 Act §303.) That opportunity means that...

McNees Wallace & Nurick LLC: Estate Planning – Portability Provisions of TRA 2010

By Frank C. Chesters The "Tax Relief, Unemployment Insurance Authorization, and Job Creation Act of 2010" was enacted December 17, 2010 and is referred to as "TRA 2010." For calendar years 2011 and 2012, TRA 2010 reunified the estate, gift and generation-skipping taxes with a...

Williams Mullen: Understanding Portability of Unused Spousal Exclusion: Avoiding the "sue" in DSUEA

BY: JOHN H. TURNER, III & JEFFREY D. CHADWICK Background to Portability. While the estate tax has been in force for many years, most estates have remained exempt from the tax due to an "applicable exclusion amount" that shelters a certain amount of a person's assets from estate...

IRS Issues Guidance on Electing Portability of Deceased Spousal Unused Exclusion Amount

The Internal Revenue Service has issued guidance on electing portability of the unused exclusion of a deceased spouse. Notice 2011-82 , which was issued on September 29, 2011, reminds estates of deceased married individuals to file a Federal estate tax return to transfer the decedent's unused...

Portability: Worth Filing an Estate Tax Return?

Dear Liza: It is my understanding that in order to preserve the "portability exemption" a surviving spouse must file an estate tax return (706), which would not be required otherwise. It seems that 706 involves quite a bit of work and additional expenses. Do you think it's worth...

Obama's 2013 Revenue Proposals

The White House has issued its 2013 fiscal year revenue proposals , with estate and gift tax changes consistent with administration's earlier stance on those rules. Beginning next year, the estate tax exemption would decrease to $3.5 million and the rate would increase to 45%. Spousal portability...

Williams Mullen: IRS Grants Extension of Time to Make Late Portability Election

BY: JOHN H. TURNER, III & JEFFREY D. CHADWICK In December 2010, Congress created a new right of "portability" between spouses,to remedy the circumstance in which spouses were unable or unwilling to engage in estate tax planning. For deaths occurring in 2011 and 2012 only, the applicable...

McNees Wallace & Nurick LLC: Estate Planning – IRS Issues Temporary Portability Regulations

By Frank C. Chesters The "Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010" was enacted December 17, 2010 and is referred to as "TRA 2010." This legislation included a significant change to the estate and gift tax applicable exclusion amount by adding...

Elaine Hightower Gagliardi on the Deceased Spousal Unused Exclusion Amount: Planning with Portability

Portability with respect to the Deceased Spousal Unused Exclusion Amount makes portability an unreliable planning tool at best; nonetheless, planners should consider whether portability can be used to the advantage of clients given stated testamentary desires. This EIA discusses the concept of spousal...