IRS May Make Permanent Extension of Time to Elect Portability for Estates

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June 12 — The Internal Revenue Service released final portability rules that offer hope to smaller estates that it may make permanent extensions of time to elect portability.

The American Tax Relief Act of 2012, signed in 2013, made so-called portability permanent. It allows transfers of unused estate-tax applicable exclusion amounts by the first spouse to die to a surviving spouse.

The deceased spousal unused exemption, or DSUE, can then be used by the survivor for his or her gift or estate tax purposes. Estates of decedents who die during 2015 have a basic exclusion amount of $5.4 million that can be transferred to a surviving spouse.