Estate Tax Exemption Relief Filing

February 22, 2014

Although the estate of a decedent dying in 2011, 2012 or 2013 may not have required the filing of an estate tax return on Form 706, it may have been appropriate to file in order to make the portability election for a surviving spouse.

The portability election allows the surviving spouse to keep and make use of any unused estate or gift tax exemption not used by their husband or wife who predeceased them.  While the estate’s assets were below the annual filing threshold - $5 million for 2011 deaths, $5.12 million for 2012 deaths and $5.25 million for 2013 deaths – a timely filed Form 706 needed to be filed in order to preserve and claim this portability election for the surviving spouse.

But there is good news for those that did not file and realize that a filing is appropriate for their circumstances.  The Form 706 must be filed by the end of 2014 and include a statement at the top stating “Filed Pursuant to Rev. Proc. 2014-18 to Elect Portability Under Section 2010(c)(5)(A)”.

This relief is only for estates that were too small to file Form 706 for deaths in 2011, 2012 or 2013.

Please contact our firm for additional details or to discuss the specifics of your situation.

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