Remarriage Causes Portability Problems Under Estate Tax Exemption

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The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 introduced the concept of portability of the estate tax exemption for the first time, but that new benefit may have a hitch, John Olivieri, a partner with White & Case in New York, tells BNA July 25. Portability allows a surviving spouse's estate to use the portion of the estate tax exemption that was not used upon the death of the first spouse. However, if the surviving spouse eventually remarries, the ability to use the deceased spouse's exemption may be lost.