The portability election allows the surviving spouse to use any unused portion of the deceased
spouse’s estate tax exclusion. This means that if one spouse dies and doesn’t use all of their estate
tax exclusion, the surviving spouse can apply the unused portion to their own estate, potentially
reducing or eliminating their own estate tax liability.
For example, if the first spouse to die has an estate worth $10 million, but only uses $5 million of
their estate tax exclusion, the remaining $5 million can be applied to the estate of the surviving
spouse. This can save a significant amount of money in estate taxes and help preserve more of
the estate for future generations.
Another advantage of a portability election is that it allows for more flexibility in estate planning.
Without the portability option, couples often have to use complex and restrictive estate planning
strategies, such as credit shelter trusts, to take full advantage of both spouses’ estate tax
exclusions. With the portability election, couples have more options and can make decisions that
better align with their overall estate planning goals.
