What is Portability (deceased spousal unused exclusion)?
In short
Portability lets a surviving spouse use the unused part of a deceased spouse's estate and gift tax exclusion (the deceased spousal unused exclusion amount), in addition to their own.
Key takeaways
- It must be elected on the deceased spouse's estate tax return, even if no tax is owed; simplified late elections are available in some cases.
- The generation-skipping transfer tax exemption is not portable.
- Unlike a credit shelter trust, it doesn't shelter later appreciation in the surviving spouse's estate.
Where it's tested
TCP: Estate & Gift Tax Planning — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Portability of the deceased spousal unused exclusion amount (DSUE) allows a surviving spouse to: