Temporary Regulations Issued on Portability of the Estate Tax Exclusion and Related Issues

June 18, 2012 | Roger McEowen


On June 15, the IRS issued temporary regulations concerning portability of the amount of the unused federal estate tax exemption at the death of the first spouse – known as the “deceased spousal unused exclusion amount” (DSUEA).

Portability is in play, by election, for individuals who die in either 2011 or 2012 and their spouse also dies by the end of 2012. Portability allows the full federal estate exemption of both a husband and wife to be utilized without the need for any detailed marital deduction estate planning to be engaged in. But, the portability provision raised numerous questions. In the temporary regulations, IRS has attempted to answer those questions.

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