Using Your Spouse’s Unused Exemption Remains an Option

Whether your estate plan includes provisions to use your deceased spouse’s unused exemption after the spouse’s death or is silent on that issue, the portability option remain law as of this writing. Portability allows a surviving spouse to save the unused portion of the deceased spouse’s exemption and use it at the time of the surviving spouse’s death. To use portability, the surviving spouse must make sure IRS Form 706 is filed within nine months after the date of the deceased spouse’s death and the form must complete the sections to preserve the exemption. Even though no estate tax may be due, Form 706 must be timely filed with the proper election made on the form. If this impacts you, we can work with your accountant to help your accountant file the Form 706.