Portability Can Simplify Planning

Charming elderly female
Charming elderly female

IRS regulations are helping married couples pass on more assets to their heirs without having to create complicated trusts.

A story on meridianstar.com says the “portability” rules allow surviving spouses to retain the unused portion of a deceased spouse’s estate exemption, as long as the rules are followed.

The exemption for 2015 is $5.43 million. That is the amount you can pass on to heirs without paying estate taxes. Before portability, any leftover exemption was lost unless the estate plan included trusts to help shelter the unused amount. Now, the surviving spouse can choose to receive the unused exemption.

There is one catch. An estate tax return must be filed within nine months of the death unless an extension is granted.

If you have questions about estate planning, feel free to contact us for a consultation at (626) 696-3145.

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