Good News For Estates With Portability in Mind

Abstract

<p>The enactment of what has been dubbed “portability” in the Tax Relief Act of 2010<strong>1 </strong>became famous for enabling the surviving spouse to utilize the remaining applicable<strong> </strong>exclusion amount (or applicable credit amount) of the last deceased spouse (dying after<strong> </strong>2010) if a federal estate tax return was filed in the estate.<strong>2 </strong>The executor had to elect and<strong> </strong>that election had to be on a timely-filed federal estate tax return.<strong>3 </strong>A six month’s extension<strong> </strong>was allowed in order to file Form 706 for deaths in the first half of 2011 and to make a<strong> </strong>portability election.<strong>4</strong></p>