Electing Portability

As I have previously discussed, the American Tax Relief Actof 2012 recently made estate tax portability permanent.

According to temporary regulations issued by the TreasuryDepartment, in order to elect portability, executors must make the election ona timely filed, and properly prepared, estate tax return.  The due date for an estate tax return is ninemonths following the date of the decedent’s death.

Portability is supposed to simplify estate planning formarried couples; however, estate tax returns are complicated and expensive toprepare.  Executors should also becareful, as portability elections are irrevocable once the due date has passed.

See Lewis Saret, Estate TaxPortability – Making the Portability Election in General, Forbes, Aug. 3,2013.