What is this “Portability” Nonsense, Anyway?

Under the provisions of the recently passed American Taxpayer Relief Act (“ATRA”), “portability” of the estate tax exemption between spouses has been made permanent.  So what does “portability” of the estate tax exemption actually mean?

Well, in a nutshell, it means that if the first spouse passes and that spouse’s estate does not require the use of his/her full federal estate tax exemption, then the surviving spouse can transfer that unused portion of the estate tax exemption to his/her estate, in addition to the estate tax exemption already allocated for that spouse as well.

To learn more about “portability” and how you may take advantage of its benefits, visit here.

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