Late on Friday, June 12 the IRS released the Final Portability Regulations. These Regulations replace the Temporary and Proposed Regulations that were released in 2012. The Regulations have an effective date of June 12 and implement important changes made by Congress in December 2010.
When Congress amended the tax laws in 2010, it allowed that part of a decedent’s unused estate tax exclusion or DSUE amount ($5.43 million for individuals who die in 2015) to pass to a surviving spouse to use to shelter the survivor’s large lifetime gifts and transfers at death. Allowing the surviving spouse to have the benefit of the DSUE amount is commonly referred to as “portability.”
While the Final Regulations largely adopt the Temporary and Proposed Regulations, we have highlighted below several possible calls to action that could affect you or your family.
If you have any questions regarding the Final Regulations or any other estate planning issue, please contact Mark Harder, 616.396.3225, or any member of our Trusts & Estates Practice Group.