Portability: Mechanics, Compliance and Risks

Josie Faix is presenting a seminar entitled, "Portability: Mechanics, Compliance and Risks" on behalf of the Trust & Estate Section of the Colorado Bar Association on February 7, 2012 at the CBA offices at 1900 Grant Street, Suite 300, Denver, Colorado. Josie will focus on compliance and exposure issues related to what has been trumpeted by some in the media as one of the most significant estate planning benefits of Sections 302(a)(1) and 303(a) of The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.

Guidance on 2011 Decedents and "Portability"

The IRS just released new guidance for personal representatives regarding electing portability of the deceased spouse’s unused estate tax exclusion amount and to potentially double the estate tax exemption that will be available at the surviving spouse’s later death. Notice 2011-82 confirms that the "portability" election must be made on a timely filed Federal Estate Tax Return (Form 706) and provides that the timely filing of a Form 706 "prepared in accordance with the instructions" will constitute the making of the portability election; therefore, by simply filing the Form 706, the estate will be considered to have elected portability "without the need to make an affirmative statement, check a box, or otherwise affirmatively elect." The Notice also provides that an estate may avoid making the election by following the instructions for the Form 706, which describe the necessary steps. For more information, go to http://www.irs.gov/pub/irs-drop/n-11-82.pdf.