Trusts & Estates
Federal Estate Tax Portability: If the Death Tax is Dead, What’s the Point of Estate Planning?
by Matthew T. McClintock, JD | VP of Legal Education, WealthCounsel
If the death tax is dead, what’s the point of estate planning?
Beyond the $5,000,000 inflation-adjusting estate tax exemption, one of the most taxpayer-friendly aspects of the American Taxpayer Relief Act of 2012 (ATRA) is a concept referred to as “portability.” A temporary feature under the previous tax act, estate tax exemption portability became a permanent fixture under ATRA. What is it? How does it work? Why should you care?
It’s essential to remember, however, that portability does not happen automatically. While federal law allows a surviving spouse to claim their deceased spouse’s unused federal exemption and add it to the surviving spouse’s own exemption (referred to as the DSUE amount, or “Deceased Spouse’s Unused Exemption amount”), the surviving spouse must claim the DSUE amount as an election on a timely-filed federal estate tax return. If no return is filed, then the survivor loses their spouse’s unused estate tax exemption.
Please complete the form below to download this WealthCounsel Thought Paper to learn more.
Topics
Complete the form to get your free guide
Related Resources
2025 Federal Exemptions & Rates: Quick Reference Guide
Save time with our consolidated Federal Estate, Gift, and GST Tax Exemptions & Rates: Quick Reference Guide—a must-have for estate planning attorneys seeking quick access to key transfer tax data.
Learn More
WealthCounsel Quarterly, Volume 19, No. 2—Spring 2025 Issue
This Spring issue addresses important topics such as summaries of recent notable developments in estate planning, elder law, and business law, and much more.
Learn More
National Elder Law Month 2025 - Free Marketing Package
May is National Elder Law Month, and it is an ideal opportunity to educate both potential clients and professionals in your referral network about important elder law topics.
Learn More