Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Understanding the Estate Tax Portability Provision
Author: Scarinci Hollenbeck, LLC
Date: August 9, 2013
Key Contacts
Back
Many affluent Americans and business owners breathed a sigh of relief when lawmakers prevented the federal estate tax exemption from reverting back to $1 million at the beginning of the year. Instead, Americans can exempt an indexed $5.25 million from federal estate taxes or $10.5 million for those who are married and file joint returns. However, another popular aspect of the tax law put in place by lawmakers is what is known as the estate tax portability provision.
This addition allows individuals to potentially double their federal estate-tax exemption. The law allows for the transfer of the federal estate-tax exemption from the estate of the first spouse to pass away to the estate of the second spouse. This means that if a husband passes away, leaving his spouse $5.25 million, this amount may be transferred and then combined with the surviving widow’s own $5.25 million exemption. This would allow the surviving spouse to pass on $10.5 million upon his or her death to beneficiaries and loved ones.
During this type of estate tax planning however, it’s important for spouses who want to take advantage of this provision to understand the correct guidelines and protocols around it. For example, in order to claim this opportunity, surviving spouses must file IRS Form 706 within nine months of the spouse passing away, a recent MarketWatch report reminded readers. As the months following the death of a spouse can be wrought with emotion, grief and a significant amount of legal complexities, widows may apply for a six-month extension by filing Form 4768 to give them more time.
Because many Americans may be unfamiliar with this provision and the rules surrounding it, it’s important to work with a well-reputed estate tax attorney to gain more knowledge of these laws and timelines. Doing so can help couples avoid costly mistakes and lost opportunities related to estate planning.
- Practices: Tax and Trusts & Estates, Estate & Trust Litigation, Real Property Tax Strategies, Sophisticated Estate Planning & Wealth Preservation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
What Business Owners Get Wrong Before Meeting a Litigation Attorney
What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
Author: Michael Mietlicki
Arbitration vs. Litigation vs. Mediation: What New Jersey Businesses Should Know Before Signing a Contract
Arbitration resolves disputes privately before an arbitrator whose decision is usually final, while litigation resolves them in court with full rights of appeal. Whether a business ends up in arbitration or litigation is often decided when it signs the contract, long before any dispute arises. Key Takeaways When facing a contract dispute, carefully consider your […]
Author: Graham Staton
Can You Own Part of a New Jersey Business Without a Written Agreement?
Can you own part of a business in New Jersey without a written agreement? Yes, it is possible. Under New Jersey’s Uniform Partnership Act, a partnership can arise when two or more people carry on a business as co-owners for profit, whether or not they ever intended to form one. Ownership doesn’t necessarily depend on […]
Author: Michael Mietlicki
Crisis-Proofing Your New Jersey Business: Building a Crisis Response Plan Before You Need One
For New Jersey businesses, crisis preparedness should be viewed as a legal and operational function, not simply an emergency-management exercise. A well-designed crisis response plan can help preserve evidence, protect confidential communications, meet reporting obligations, limit unnecessary exposure, and prevent an already difficult situation from becoming a larger legal problem. Key Takeaways A serious crisis […]
Author: Sean M. Pena
Monmouth County's Next Development Wave: What Developers and Investors Need to Know
Monmouth County is entering a significant new phase of development. For those looking to acquire property or undertake a new project, understanding the market opportunity is only the beginning. The more important question is whether a particular property can actually be developed as contemplated and what approvals, agreements, and other conditions will be required to […]
Author: Donald M. Pepe
Are Your Conversations with AI Shielded from Discovery? Courts Are Split
Whether a client’s prompts to a generative AI tool and the documents it produces are protected from disclosure depends on the case type, who claims protection, and whether counsel was involved. In United States v. Heppner, a New York federal judge ruled that a criminal defendant’s communications with an AI platform were protected by neither […]
Author: Chris Seelinger
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.