Skip to main content

Site Navigation

Site Search


IRS Issues New Portability Election Relief for Estates

August 01, 2022

Surviving spouses…under a new IRS ruling, you can now transfer the deceased spouse’s unused exemption amount (DSUEA) to your estate within five years of their death. Here are the details.

The IRS has recently released guidance extending the portability election for widows/widowers to five years. Here’s what you should know.

What is the portability election?

For 2022, Individuals can gift up to $12.06 million to children and non-spouse beneficiaries during life or at death. Anything above that may result in up to 40% estate taxes.

However, under the portability election, surviving spouses can transfer their deceased spouse’s unused exemption amount (DSUEA) for estate and gift taxes to their own account. This election is made on IRS Form 706, a timely filed federal estate tax return.

What’s new?

Under Section 2010(c)(5)(A), executors of a decedent’s estate may elect for portability of the DSUEA to a surviving spouse if they meet the following conditions:

  1. The decedent passed away after December 31, 2010
  2. Under Section 6018(a), the decedent was not required to file an estate tax return because the value of the gross estate and adjusted taxable gifts was under the filing threshold
  3. On the date of death, the decedent was a citizen or resident of the United States

Under prior guidance, surviving spouses had to elect portability within two years of their spouse’s death, but this new ruling extends the deadline to five years.

Additionally, within the five year window, you are no longer required to request a private letter ruling from the IRS. Instead, you can elect portability by filing an estate tax return.

Questions on the new portability rules? We can help.

Investment Advisory Services offered Through KLR Investment Advisors LLC

Investment Advisor Representative

Insurance Services offered through KLR Insurance Advisors, LLC

Stay informed. Get all the latest news delivered straight to your inbox.

Also in Business Blog

up arrow Scroll to Top