The new rules can also now benefit surviving spouses of same-sex marriages in the aftermath of the Supreme Court’s landmark decision in the U.S. v. Windsor case.
Revenue Procedure 2014-18 provides a simplified method for certain taxpayers to obtain an extension of time to make a “portability” election under which a decedent’s unused exclusion amount (that is, the deceased spousal unused exclusion amount, or DSUE amount) becomes available to apply to the surviving spouse’s subsequent transfers during their life or at death. The
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 amended the Tax Code to allow the estate of a decedent who is survived by a spouse to make a portability election, which allows the surviving spouse to apply the decedent’s DSUE amount to the surviving spouse’s own transfers during life and at death. The portability election applies to estates of decedents dying after
The portability provisions were originally scheduled under the 2010 law to expire on
There are some requirements that the executor of the estate of a deceased spouse must satisfy to allow the surviving spouse to apply the decedent’s DSUE amount to the surviving spouse’s transfers. In particular, the executor of the estate of the deceased spouse must elect portability of the DSUE amount on a Form 706, which must include a computation of the DSUE amount. A portability election is effective only if it is made on a Form 706 filed within the time prescribed by law, including extensions.
The due date of an estate tax return required to elect portability is nine months after the decedent’s date of death, or the last day of the period covered by an extension, if an extension of time for filing has been obtained from the
However, the Supreme Court’s decision in U.S. v. Windsor and Rev. Rul. 2013-17, which the
Prior to the Windsor decision, the
For federal tax purposes, the
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