Which item is NOT required for portability of the unused exemption to be available?

Which item is NOT required for portability of the unused exemption to be available?

• A. A timely estate tax return being filed.
• B. The estate being large enough to cause federal estate tax.
• C. The executor electing portability.
• D. The couple being married at the time of death.

Answer: (B)

Portability of the unused exemption lets the surviving spouse use the portion of the federal estate tax exclusion that the first spouse to die didn’t use. To make this available, the estate of the deceased spouse must file a timely estate tax return and elect portability, and the couple must have been married at the time of death. It isn’t required that the estate be large enough to owe federal estate tax. In other words, portability can be preserved even when the first-to-die estate wouldn’t trigger tax, as long as the election is properly made on the required return.

Portability of the unused exemption lets the surviving spouse use the portion of the federal estate tax exclusion that the first spouse to die didn’t use. To make this available, the estate of the deceased spouse must file a timely estate tax return and elect portability, and the couple must have been married at the time of death. It isn’t required that the estate be large enough to owe federal estate tax. In other words, portability can be preserved even when the first-to-die estate wouldn’t trigger tax, as long as the election is properly made on the required return.