Maximizing the Benefits of Portability in Estate Tax Planning
Effective estate tax planning is essential to minimize the tax burden on your heirs after your passing. In New York, both state and federal estate taxes may apply, making it crucial to explore strategies like portability for married couples. Portability allows a surviving spouse to utilize any unused portion of their deceased partner’s federal estate tax exemption, known as the Deceased Spousal Unused Exclusion (DSUE). understanding and maximizing portability can significantly impact your family’s wealth preservation.
Exploring Portability and DSUE
Portability enables a surviving spouse to access their deceased partner’s unused federal estate tax exemption through DSUE. This tool can be instrumental in effective tax planning.
Key points about portability include:
- Election Requirement: The executor must file an estate tax return (Form 706) and elect portability to transfer the
