Estates Should Consider A “Portability Election”

When an estate is under the estate tax return filing threshold ($5 million for 2011, $5.12 million for 2012, and $5.25 million for 2013), trustees should still consider filing a Form 706 estate tax return. Trustees can make a “portability election” allowing the surviving spouse to use the decedent spouse’s unused exclusion amount. The IRS allows late elections for estates created after 2011 and before 2014; the due date is Dec. 31, 2014. After that date, it’s too late. See Rev. Proc. 2014-18.