Portability of the Estate Tax Exemption and Its Potential Effect
A summary of the article is below:
One issue that has received much discussion over the last several years is the concept of allowing the estate of a surviving spouse to use the unused estate tax applicable exemption amount from the estate of his or her predeceased spouse. This concept has often been referred to as portability of the applicable exemption amount (frequently referred to as “portability” herein) and can serve in many cases to simplify estate plans of persons with significant wealth while also allowing some taxpayers to avoid traps for the unwary. This article will review the concept of portability and its potential effect, should it be enacted.