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Question for the Money Doctors

Question submitted on Mar 28, 2014.

Question

Can the portability Federal Estate Tax Exemption Act of 2013 applicable to an A-B Trust if the spouse has died prior to this Act of 2013?

Answer

You are talking about the deceased spousal unused exclusion, also known as DSUE.   This only applies to decedents dying and gifts made after January 1, 2011.   Any attempt to make a portability election on a Form 706 filed for the estate of a decedent dying before January 1, 2011 will be ineffective.

You have to make the portability election on a timely filed Form 706.

This is a complicated subject, please consult with a CPA knowledgeable on this topic to see how it applies to your situation.  Please visit www.findacpapfs.com to find a CPA/PFS in your area.


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