The IRS has issued its final regulations for portability in T.D. 9725, 80 Fed. Reg. 34,279 (June 16, 2015).
Up until this time we have been operating under temporary regulations which have caused occasional concerns to arise. Advisors should be familiar with the differences and clarifications provided by the new regulations. One of the points addressed by the regulations is clarification that there will not be an automatic 6 month extension for electing portability if the estate was required to file a tax return. Another detail is that a protective election does not need to be filed as long as the estate files a properly prepared and complete estate tax return. If subsequent and proper adjustments are later made to the return, the survivor can make use of any reclaimed exemption amount.
The text of the regulations can be found here.
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