A Second Chance to Double Your Tax Exemption

CunninghamLegal – The Living Trust Lawyers

The IRS just issued Revenue Procedure 2017-34, which, for a limited time, has extended the deadline to file for portability elections. The American Taxpayer Relief Act of 2012 (enacted in 2013) provided people with the process of “Portability” where a surviving spouse “inherits” the unused Federal Estate Tax Exemption of their predeceased spouse by filing an Estate Tax Return (Portability Form 706) within nine (9) months of the date of death, or within 15 months if a 6-month extension is timely filed. This Portability tool may significantly reduce your estate taxes at your death. Due to the numerous extensions granted to people filing their estate tax return, the IRS has reopened that window for the sake of efficiency.

If you or anyone you know has missed the window to file the estate tax return, the deadline has been extended to January 2, 2018 or by the second anniversary of the decedent’s death (whichever is later). Please note, this process will not apply if the first spouse died before January 1st, 2011.

If you think your estate may benefit from electing “portability” but missed the deadline to file, you can still schedule an appointment with our office before the hard deadline of January 2, 2018, when this opportunity will be lost.