--- title: What You Need to Know About the Final Estate Tax Portability Rules description: Recently the IRS issued the final rules governing the “portability election” as it relates to the federal estate tax exemption. image: https://blog.goosmannlaw.com/hubfs/Blog_Images/43546387_m.jpg --- [![Goosman Lawfirm](https://blog.goosmannlaw.com/hs-fs/hubfs/Goosmannlaw%20October2017/images/Goosmann_Law_Firm_logo_4C-white.png?width=1250&name=Goosmann_Law_Firm_logo_4C-white.png "Goosman Lawfirm")](http://goosmannlaw.com/) - [COVID-19 Toolbox](https://goosmannlaw.com/covid-19-resource-toolbox/) - Our Team - [Attorneys](https://goosmannlaw.com/attorneys/) - [Non-Attorney Staff](https://http://goosmannlaw.com/non-attorney-staff/) - Practices & Industries - [Practices](https://goosmannlaw.com/practices/) - [Banking & Finance](https://goosmannlaw.com/banking-finance/) - [Bankruptcy, Restructuring & Workouts](https://goosmannlaw.com/bankruptcy-restructuring-workouts/) - [Business](https://goosmannlaw.com/business/) - [Divorce & Family Law](https://goosmannlaw.com/divorce-family-law/) - [Employment](https://goosmannlaw.com/employment-law/) - [Environmental, Health & Safety](https://goosmannlaw.com/health-safety/) - [Estate Planning](https://trustlawcounsel.com) - [Gestational Surrogacy & Adoption](https://goosmannlaw.com/gestational-surrogacy-adoption/) - [International Law](http://goosmannlaw.com/international-law/) - [Litigation / Trial Law](https://goosmannlaw.com/litigation-trial-law/) - [Local Counsel](https://http://goosmannlaw.com/local-counsel/) - [Mergers & Acquisitions](https://goosmannlaw.com/mergers-acquisitions/) - [Rapid Response](https://goosmannlaw.com/rapid-response/) - [Industries](https://goosmannlaw.com/industries/) - [Agribusiness & Cooperatives](https://goosmannlaw.com/agribusiness-cooperatives/) - [Construction](https://goosmannlaw.com/construction/) - [Cyber Law and Telecommunications](https://goosmannlaw.com/cyber-law/) - [Education](https://goosmannlaw.com/education/) - [Health Care](https://goosmannlaw.com/health-care/) - [Manufacturing](https://goosmannlaw.com/manufacturing-law/) - [Multifamily Housing](https://goosmannlaw.com/multifamily-housing-law/) - [Non-Profit & Tax Exempt Organizations](https://goosmannlaw.com/non-profit-law/) - [Real Estate](https://goosmannlaw.com/real-estate/) - [Transportation](https://goosmannlaw.com/transportation/) - [Tribal](https://goosmannlaw.com/tribal/) - Our Firm - [Firm News](https://blog.goosmannlaw.com/firm-news) - Careers - [Attorneys](https://goosmannlaw.com/careers/attorneys/) - [Administration](https://goosmannlaw.com/careers/administration/) - [Internships](https://goosmannlaw.com/careers/internships/) - [Client Testimonials and Results](https://goosmannlaw.com/our-firm/client-testimonials-and-results/) - [Culture, Diversity, and Community](https://http://goosmannlaw.com/our-firm/culture-diversity-and-community/) - [Women-Owned Business](https://goosmannlaw.com/our-firm/women-owned-business/) - [Associations & Memberships](https://goosmannlaw.com/associations-memberships/) - [Firm History](https://goosmannlaw.com/firm-history/) - Blogs - [CEO Law Review](https://blog.goosmannlaw.com/ceo-on-your-side) - [Construction Lawyer](https://blog.goosmannlaw.com/construction-lawyer-on-your-side) - [Cyber Lawyer](https://blog.goosmannlaw.com/cyber-lawyer-on-your-side) - [Deal Maker](https://blog.goosmannlaw.com/deal-maker-on-your-side) - [Divorce Docket](https://blog.goosmannlaw.com/divorce-lawyer-on-your-side) - [Food for Thought](https://blog.goosmannlaw.com/agricultural-lawyer-on-your-side) - [HR Legal Insider](https://blog.goosmannlaw.com/human-resources-on-your-side) - [Law Doc](https://blog.goosmannlaw.com/health-lawyer-on-your-side) - [Paralegal Review](https://blog.goosmannlaw.com/paralegal-review/) - [Real Estate Lawyer](https://blog.goosmannlaw.com/real-estate-lawyer-on-your-side) - [Risky Business](https://blog.goosmannlaw.com/risk-manager-on-your-side) - [The Banker’s Suit](https://blog.goosmannlaw.com/banking-lawyer-on-you-side) - [Trial Law Review](https://blog.goosmannlaw.com/trial-lawyer-on-you-side) - [Trust Law Counsel](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side) - Resources - [COVID-19 Resource Toolbox](https://goosmannlaw.com/covid-19-resource-toolbox/) - [Podcast](http://podcast.goosmannlaw.com/) - [Videos](https://goosmannlaw.com/videos/) - [FREE eBooks & Tools](https://goosmannlaw.com/free-ebooks-tools/) - Contact Us - [Office Locations](https://goosmannlaw.com/locations/) - [Sioux City Law Firm](https://goosmannlaw.com/locations/sioux-city-law-firm/) - [Sioux Falls Law Firm](https://goosmannlaw.com/locations/sioux-falls-law-firm/) - [Omaha Law Firm](https://goosmannlaw.com/locations/omaha-law-firm/) - [Spirit Lake & Spencer Law Firms](https://goosmannlaw.com/locations/spirit-lake-and-spencer-law-firm/) - [Real Estate Closings Office](https://goosmannlaw.com/locations/real-estate-closing-office/) - [Submit a Testimonial](https://goosmannlaw.com/submit-a-testimonial/) - [Sign Up for Our Newsletter](https://goosmannlaw.com/sign-up-for-our-newsletter/) - [Pay Online](https://goosmannlaw.com/pay-online-3/) - [  (855) 843-4531](tel:855-843-4531) ![](https://blog.goosmannlaw.com/hubfs/Blog_Images/Lockbox%20Lawyer/close-button.png) [tel:855-THE-GLF1](tel:855-THE-GLF1) [Trust Law Counsel](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/trust-law-counsel) [Portability Election](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/portability-election) # [What You Need to Know About the Final Estate Tax Portability Rules](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/what-you-need-to-know-about-the-final-estate-tax-portability-rules) By [Goosmann Law Team](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/author/goosmann-law-team)   |  30, September 2015 [READ NOW](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/what-you-need-to-know-about-the-final-estate-tax-portability-rules) [Read Post](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/what-you-need-to-know-about-the-final-estate-tax-portability-rules#article) [![](https://blog.goosmannlaw.com/hs-fs/hubfs/Logos/Logo1.jpg?width=60&name=Logo1.jpg)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/author/goosmann-law-team) [Goosmann Law Team](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/author/goosmann-law-team)  Tags: [Trust Law Counsel](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/trust-law-counsel) [Portability Election](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/portability-election) ![The “portability election” refers to the right of a surviving spouse to claim the unused portion of the federal estate tax exemption of their deceased spouse and add it to the balance of their own exemption.](https://blog.goosmannlaw.com/hs-fs/hubfs/Blog_Images/43546387_m.jpg?width=647&name=43546387_m.jpg "The “portability election” refers to the right of a surviving spouse to claim the unused portion of the federal estate tax exemption of their deceased spouse and add it to the balance of their own exemption.") Recently the IRS issued the final rules governing the “portability election” as it relates to the federal estate tax exemption.  Married couples need to understand how these final rules may affect their existing estate plans, while recent widows and widowers need to understand how these finals rules may affect their deceased spouse’s estate. ### What is the "Portability election" and How is the Election Made? The “portability election” refers to the right of a surviving spouse to claim the unused portion of the federal estate tax exemption of their deceased spouse and add it to the balance of their own exemption. Since in 2015 the federal estate tax exemption is $5.43 million per person (the exemption changes every year since it is indexed for inflation), this means that a married couple can potentially pass on $10.68 million to their heirs free from federal estate taxes.  To properly make the portability election, the surviving spouse must timely file a federal estate tax return, known as the “United States Estate (and Generation-Skipping Transfer) Tax Return,” or “Form 706” for short.  Form 706 is due on or before nine months after the deceased spouse’s date of death, but an automatic six-month extension of time to file the return can be requested by filing an “Application for Extension of Time to File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes,” or Form 4768 for short, on or before the due date of the estate tax return. ### Which Estates Are Subject to the Final Estate Tax Portability Rules? The portability election first went into effect for the estates of decedents who died on or after January 1, 2011, and in response the IRS issued temporary regulations to guide taxpayers and their advisors through properly making the election.  The final regulations that were recently released replace the temporary regulations for the estates of decedents who die on or after June 12, 2015, while the temporary rules still apply to the estates of decedents who died on or after January 1, 2011, and before June 12, 2015. ### What Do the Final Rules Provide? The final rules clarify that a regulatory extension of time to make the portability election will only be granted to estates that have a gross value below the estate tax exemption in effect in the year of death.  In other words, in 2015 the gross estate must be valued less than $5.43 million in order for a request for a regulatory extension to be made.  The final rules also make it clear that the administrator of the estate of a decedent who was not a U.S. citizen at the time of death may not make a portability election on behalf of the non-citizen decedent. Unfortunately the IRS ended up rejecting a recommendation made by the American Institute of CPAs for the creation of a shorter version of Form 706 that would be used solely for the purpose of making the portability election.  The IRS cited problems it has had with other types of abbreviated forms and the difficulties and costs associated with maintaining alternate forms as the reasons for rejecting this recommendation. ### How Do the Final Rules Affect Existing Estate Plans? Married couples who already have an estate plan should consult with their estate planning attorney to determine if any changes need to be made to their plan in view of these final rules.  Things to consider include the potential for an estate to be subject to state estate taxes, whether the portability election is a viable option in view of second or later marriages, the projected value of the couple’s estate over their life expectancies, and the loss of the step up in basis when traditional AB Trust planning is used. ### How Do the Final Rules Affect Recent Widows and Widowers? Surviving spouses of decedents who died within the past eight months should immediately consult with an estate planning attorney to determine if the portability election can and should be made with regard to their deceased spouse’s estate.  Failure to timely make the election or seek an extension may end up shortchanging heirs and putting the estate administrator at risk of being sued. Please do not hesitate to contact [Goosmann Trust Law Counsel](http://trustlawcounsel.com/) at (712) 226-4000 if you have any questions about the final estate tax portability rules. [![CONTACT US](https://no-cache.hubspot.com/cta/default/489404/ec70fe7d-ad02-40c5-93ba-4800375ab6e9.png)](https://cta-redirect.hubspot.com/cta/redirect/489404/ec70fe7d-ad02-40c5-93ba-4800375ab6e9) ### Select Different CTA for each Post from Blog Editor [![New Call-to-action](https://no-cache.hubspot.com/cta/default/489404/a8cefc17-3b9d-4de0-89cd-e60a64752422.png)](https://cta-redirect.hubspot.com/cta/redirect/489404/a8cefc17-3b9d-4de0-89cd-e60a64752422) ### Subscribe Our Blog Thanks for submission!! - Recent - Popular ### Posts by Topic - [Trust Law Counsel (76)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/trust-law-counsel) - [Estate Planning (62)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/estate-planning) - [Wills and Trusts (8)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/wills-and-trusts) - [Trust Planning (5)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/trust-planning) - [Death Taxes (3)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/death-taxes) - [Business Succession (2)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/business-succession) - [Dynasty Trust (2)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/dynasty-trust) - [Inheritance (2)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/inheritance) - [Irrevocable Trust (2)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/irrevocable-trust) - [Last Will (2)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/last-will) - [Probate Fees (2)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/probate-fees) - [South Dakota (2)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/south-dakota) - [Succession Plan (2)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/succession-plan) - [Trust Protector (2)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/trust-protector) - [COVID-19 (1)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/covid-19) - [Capital Gains Tax (1)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/capital-gains-tax) - [Cyber Legacy (1)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/cyber-legacy) - [Digital Assets (1)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/digital-assets) - [Disability Estate Planning (1)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/disability-estate-planning) - [Estate Litigation (1)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/estate-litigation) - [Fiduciary Rule (1)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/fiduciary-rule) - [Financial Exploitation of the Elderly (1)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/financial-exploitation-of-the-elderly) - [Financial Planning (1)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/financial-planning) - [Firm News (1)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/firm-news) - [Founder Equity in Estate Planning (1)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/founder-equity-in-estate-planning) - [Handwritten Intentions (1)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/handwritten-intentions) - [IRA (1)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/ira) - [IRAs (1)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/iras) - [Important Documents (1)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/important-documents) - [Liability Protection (1)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/liability-protection) - [Portability Election (1)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/portability-election) - [Probate (1)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/probate) - [Testament (1)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/testament) - [Trust Funding (1)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/trust-funding) - [Virtual Notarization (1)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/virtual-notarization) - [power of attorney (1)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/power-of-attorney) - [tax reform (1)](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/topic/tax-reform) DISCLAIMER: The information in this blog post (“post”) is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. By visiting this website, blog, or post you understand that there is no attorney client relationship between you and the Goosmann Law Firm attorneys and website publisher. No information contained in this post should be construed as legal advice from Goosmann Law Firm, PLC, or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this Post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction. #### Let Us Know What You Thought about this Post. Put your Comment Below. [Previous Post](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/september-is-life-insurance-awareness-month) ##### [September is Life Insurance Awareness Month](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/september-is-life-insurance-awareness-month) [Next Post](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/estate-planning-after-a-divorce) ##### [Estate Planning After A Divorce](https://blog.goosmannlaw.com/estate-planning-laywer-on-your-side/estate-planning-after-a-divorce) ### Contact Info **Sioux City Location** P. 712-226-4000 F. (712) 224-4517 **Sioux Falls Location** P. (605) 371-2000 F. (605) 275-2039 **Omaha Location** P. (402) 280-7648 F. (402) 505-3967 --- [Disclaimer](http://goosmannlaw.com/list-all-blogs/disclaimer/) | [Privacy Policy](http://goosmannlaw.com/privacy-policy/) ### Locations **Sioux City Location** 410 5th Street Sioux City, IA 51101 **Sioux Falls Location** 5010 S. Minnesota Avenue, Suite 100 Sioux Falls, SD 57108 **Omaha Location** Advent Building 17838 Burke Street, Suite 250 Omaha, NE 68118 ![Goosmann](https://blog.goosmannlaw.com/hs-fs/hubfs/Blog_Images/Lockbox%20Lawyer/goosmann-white.png?width=250&name=goosmann-white.png "Goosmann") Goosmann Law Firm is a FULL SERVICE LAW FIRM with locations in Sioux City, Iowa, Sioux Falls, South Dakota, and Omaha, Nebraska. Goosmann Law attorneys are licensed to practice in Iowa, Nebraska, South Dakota, and North Dakota. Their attorney team's practices and industries include but are not limited to Agribusiness and Cooperatives, Banking and Finance, Bankruptcy, Restructuring and Workouts, Business, Construction, Cyber Law and Telecommunications, Divorce and Family Law, Education, Employment, Environmental Health and Safety, Gestational Surrogacy and Adoption, Health Care, Litigation and Trial Law, Manufacturing, Mergers and Acquisitions, Municipal, Nonprofit and Tax Exempt Organizations, Real Estate, and Transportation, Tribal, Wills, Trusts, Estate Planning, and Probate Law. Goosmann © Copyright 2017