Estate Planning Attorney Notes IRS Deadline Extension for Portability Election

9:23 pm Tax Planning

IRS Logo 150x150 Estate Planning Attorney Notes IRS Deadline Extension for Portability ElectionThe IRS announced last week that it is extending the deadline for widows and widowers of those who died in the first six months of 2011 and have estates of $5 million or less to make the portability election.

Thanks to the 2010 Tax Act, the portability election allows estates of married couples to pass on the unused portion of their individual $5 million exclusion to a surviving spouse.  The new portability provision means that – at least for the next two years – spouses do not need to re-title property or create trusts just to take advantage of each other’s exclusion amount.  The Obama Administration has also suggested that portability be made permanent in their 2013 Budget proposal.

The IRS has extended the deadline for estates to make the portability election to 15 months after the decedent’s date of death, rather than the usual nine months.  The extension is available even if estates did not request the automatic six-month filing extension prior to the regular nine-month filing deadline.

Estates of those who died in the first six months of 2011 can make a portability election by filing a Form 4768 and Form 706 to the IRS no later than 15 months after the date of death.

Contact us today for individualized planning strategies to meet your unique needs.

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