Filing a Federal Estate Tax Return After the First Spouse Dies to Make Portability Election?

I want to talk to you about how it may be necessary and very tax advantageous to file a federal estate tax return after the first spouse dies where in the past that was never necessary. We have something new called portability. I'll give you an example, let's say mom dies and she has an estate of $400,000 and her estate tax exemption is $1 million. Now we can file a federal estate tax return within nine months after mom's death. No estate tax is due but mom didn't use $600,000 of her estate tax exemption. Simply by filing her return, dad now has his estate tax exemption, and he also gets to use her $600,000 of unused estate tax exemption. It's a big deal and it's something new, but in order to take advantage of it, the family has to act after the death of the first spouse. If you don't file a return within nine months and you don't do all that timely, you lose this opportunity for the surviving spouse to save a considerable amount of estate tax. So be aware that after the first spouse dies, find out whether filing an estate tax return is going to save significant family assets after the death of the surviving spouse. I'm Paul Rabalais, be aware of that portability law, which is new. If you have any questions about it call us toll free at 866-491-3889. Have a great day!

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Filing a Federal Estate Tax Return After the First Spouse Dies to Make Portability Election? - Paul Rabalais' Louisiana Succession Law Blog