The Federal Estate Tax law provides every person a credit against payment of the estate tax. At present, that credit allows a person to transfer up to $11,400,000 without paying any estate taxes. If married, both spouses have the same credit.
The law now provides that a deceased spouse’s credit is “portable.” This means that the deceased spouse’s unused credit may be transferred to the surviving spouse. But, to make this election, an estate tax return must be filed for the deceased spouse.
In some instances, the surviving spouse, or the deceased spouse’s representative, may fail to file an Estate Tax Return for the deceased spouse or make a portability election. The IRS has the discretion to grant a reasonable extension of time to make the portability election. In order to obtain an IRS extension, the taxpayer must file a Letter Ruling Request and show that (1) the taxpayer acted reasonably and in good faith, and (2) that granting an extension will not prejudice the interests of the government.
Here at Chauvel & Glatt, we are dedicated to assisting clients in the administration of a trust. To learn how our attorneys can assist you, contact us today.
This material in this article, provided by Chauvel & Glatt, is designed to provide informative and current information as of the date of the post. It should not be considered, nor is it intended to constitute, legal advice or promise similar outcomes. For information on your particular circumstances, please contact Chauvel & Glatt at 650-573-9500. (Photo credit: 123rf.com)