Planning with Portability Do-Overs (But Only for a Limited Time)

Abstract

In this article, the authors discuss Rev. Proc. 2014-18, in which the IRS provides some estates with a simplified method for making a portability election and having that election treated as timely even though the statutory deadline may have passed. The authors suggest that once the estate tax exemption of a first spouse to die has been preserved under Rev. Proc. 2014-18, an effective estate plan for the surviving spouse may include creating and funding a lifetime trust structured as a grantor trust.

Keywords: estate tax, portability, election, tax, Revenue Procedure

JEL Classification: K34, K19