July 18th, 2017

IRS Extends Time to Elect “Portability” to January 2018

In 2010, Congress passed the “portability” provision, allowing married couples to make tax-saving moves after the death of the first spouse. Prior to the enactment, the unused exemption of the first to die was permanently lost if the couple had not previously established complicated special trusts.  Many clients did not establish these special trusts.

Since the 2010 provision passed, the IRS has received numerous requests for “portability” and relief.  The new procedure is much simpler. Executors for estates of people who died from January 1, 2011 to January 2, 2016 have until January 2, 2018 to file an Estate Tax Return and make a “portability” election at no cost.

Executors who miss the January 2, 2018 deadline will need to request the IRS for individual relief with an estimated fee of $10,000 owed to the IRS.

If you wish to take advantage of this opportunity, contact our estate planning department, today at (610) 820-5450.

Attorney Jim Ritter is an estate planning attorney with extensive experience preparing wills, Powers of Attorney, and trusts. Jim is also frequently sought out by family members to manage the estate administration process.

The content found in this resource is for informational reference use only and is not considered legal advice. Laws at all levels of government change frequently and the information found here may be or become outdated. It is recommended to consult your attorney for the most up-to-date information regarding current laws and legal matters.