Using the new portability election of deceased spouses

A pedagogical example

Authors

  • De’Arno De’Armond Edwards Professor of Financial Planning, West Texas A&M University
  • Darlene Pulliam Regents Professor of Accounting, McCray Professor of Business, West Texas A&M University
  • Robin Patterson Patterson Professor of Business Law, West Texas A&M University

DOI:

https://doi.org/10.61190/fsr.v23i3.3199

Keywords:

Portability election, Lifetime gifts, Financial planning, Estate planning, Tax accounting

Abstract

The United States has a unified system that taxes transfers of property during an individual’s lifetime (gifts) and property transferred as a result of the individual’s death. The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the Act) contains a provision that will allow the unused portion of a decedent’s exclusion (taxable estate protected by the unified credit) to be used upon the subsequent death of the surviving spouse. The portability election is simple for situations where it appears the surviving spouse will not remarry, however, becomes much more complicated if the surviving spouse should remarry.

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Published

2014-09-30

How to Cite

De’Armond, D., Pulliam, D., & Patterson, R. (2014). Using the new portability election of deceased spouses: A pedagogical example. Financial Services Review, 23(3), 239–248. https://doi.org/10.61190/fsr.v23i3.3199

Issue

Vol. 23 No. 3 (2014): Fall 2014

Section

New Original Submission

License

Copyright (c) 2014 Academy of Financial Services

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