Does Portability of the Estate Tax Exemption Occurs Automatically?
In order to elect portability of the decedent’s unused exclusion amount (deceased spousal unused exclusion (DSUE) amount) for the benefit of the surviving spouse, the estate’s representative must file an estate tax return (Form 706) and the return must be filed timely.
Do you have to file a Form 706 for an estate?
Thus, estates not required to file the Form 706 because the decedent’s gross estate is below the minimum amount required for an estate tax return to be filed, nevertheless, must file a completely filled out a Form 706 and make the portability election on such return if the second spouse ever hopes to use the first spouse’s unused exclusion amount.
Do you need to file a Form 706 for portability?
The instructions explain that if an estate intends to elect portability, timely filing (including extensions) a complete Form 706 is all that is required. The deceased spouse’s unused exclusion must be computed on the return.
When did the IRS post the Form 706?
In October, the IRS posted Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return , and its final instructions.
