A Five Million Dollar Deadline Is Approaching

The IRS extension of time to elect portability of an unused estate tax exemption expires on December 31.

If you had a spouse die in 2011, 2012 or 2013, you should be looking into an important December 31, 2014 deadline. The IRS granted an extension of time to 12/31/2014 to elect portability of the unused estate tax exemption amount for the estate of a decedent who died in 2011, 2012 or 2013.

This is especially important for married couples whose marriage was not recognized by the Federal government because of DOMA. Once the important provisions of DOMA were struck down in United States v. Windsor, the IRS had to deal with the number of married couples who were denied access to portability because their marriages were not recognized. If your same-sex spouse died in 2011-2013, you could not file a Federal Estate Tax return and claim portability of their unused estate tax exemption. This may be worth as much as five million dollars to your heirs, as it allows you to add this "portable" exemption to your own when you die.

The exemption is good for any spouse, whether affected by the DOMA decision or not.

A great explanation of both estate tax portability, and the extension of the right to elect for portability can be found here, at an article by Michael Kitces.

Contact our office if you have any questions regarding this opportunity.