§ 20.2010-2(a)(1) provides that an estate that elects portability will be considered to be required to file a return under Code Sec. The 706 can be useful for that. The first spouse to die may leave his or her assets to the surviving spouse and the surviving spouse inherits assets from a deceased spouse estate tax free. My mother passed and my father is filing form 706 only for the portability election and is electing to estimate values. The preparation of the 706 may not be needed for any other reason except to make the election to preserve the DSUE amount for … Trustees, Personal Representatives of Estates and advisors now need to add to their checklist the requirement of having a discussion and an evaluation on whether a 706 should be filed on the death of the first spouse in order to preserve the DSUE amount for the surviving spouse. of certain property eligible for the marital deduction 6075-1 and 20. To properly make the portability election, the surviving spouse must timely file a federal estate tax return, known as the “United States Estate (and Generation-Skipping … , and its final instructions. The portability election is made by timely filing a properly completed IRS Form 706 (federal estate tax return), which must include a computation of the DSUE amount. The only way that her estate can claim portability, however, is if your executor files Form 706 even if you don't owe any taxes. The release of Rev. Instructions for Form 706 (09/2020) | Internal Revenue Service the election. The portability election is automatically made when Form 706 is filed. 3 of Form 706. f) Computation required for portability election (1) Transitional Rule (2011 Deaths) –A “complete and properly-prepared estate tax return” will be deemed to include the computation of the DSUE amount. Kemp Klein Law Firm201 W. Big Beaver Rd, Ste 600Troy, Michigan 48084. prevent the election from being made. Get important tax news, insightful articles, document summaries and more delivered to your inbox every Thursday. and interest in the form of a surety bond or a section 6324A lien. the decedent’s estate can either make or opt out of 20. To make a portability election, the decedent's estate must file IRS Form 706, which is the "United States Estate (and Generation-Skipping Transfer) Tax Return." United States Estate A portability election can be made only on a Form 706 timely filed by the estate of a decedent dying after December 31, 2010, and any attempt to make a portability election on a Form 706 filed for the estate of a decedent dying on or before December 31, 2010, will be ineffective. Second, the 9-month timeline for filing an estate tax return and electing portability was increased to two years. Learn more about portability and the Clayton election: If attacked, do you want to be Victor or Victim? Treas. In order for the surviving spouse to be able to use the DSUE amount, the Executor of the deceased spouse’s estate must file a properly prepared 706, United States Estate (and Generation-SkippingTransfer) Tax Return. 6018(b) to file returns. A special rule in the portability regulations for calculating the applicable exclusion amount provides that any DSUE inherited from a prior deceased spouse can be preserved, even if an individual remarries and survives a second spouse, if the remarried spouse makes taxable gifts that use up the DSUE amount inherited from the first deceased spouse before he or she survives a second spouse. And there are other extensions you may be able to take even if you miss the two year deadline. Effective June 9, 2017, Rev. Extension of time to file. Because the $3 million is less than the $11 million, no federal estate taxes are actually due and no return is required. If the surviving spouse of the first marriage who inherited a DSUE amount dies before the new spouse of the second marriage, then the surviving spouse of the first marriage who remarries may not be able to use the DSUE amount inherited. 2010(c)(5) portability election. the executor is permitted to estimate the value in The IRS says that Form 706 must be filed "timely" - within 9 months of your spouse's death. You may apply for a discretionary additional extension of time to file the 706 only if you are an executor and are out of the country. 6018(a) or Code Sec. The IRS on Sept. 29 issued Notice 2011-82 to alert executors of 2011 estates of the need to file a Form 706 to make the election to transfer a decedent’s unused $5 million estate and gift tax exclusion to the surviving spouse. Year, we will be lost if the return IRS posted Form 706 for Marital portability spouse... [ … ] the release of Rev there is a 6 month automatic extension if 4768. 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