The IRS announced new regulations to the system of portability which allows any unused estate tax exclusion to pass to the surviving spouse. Under the initial rules, the transfer was required to be part of the estate tax filing in order to pass to the spouse. The new rules will allow for a 15 month extended filing period after the estate tax return is submitted to apply for the exclusion transfer. However, any estate larger than the exclusion must apply for the transfer under the old rules or lose the right. Also issued was a regulation concerning non-citizen spouses, they make elect for the exclusion upon becoming a citizen after the death of the spouse.
See Ashlea Ebeling, IRS To Allow Do-Overs For Some Estates, Forbes, July 2, 2015.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
