Portability allows a surviving spouse to use the deceased spouse's unused estate tax exemption. To qualify for portability, the deceased spouse must have been a U.S. citizen and the executor must file an estate tax return within 9 months of death electing portability. This estate tax return calculates the deceased spouse's unused exemption amount, known as the deceased spouse unused exclusion (DSUE) amount, which the surviving spouse can then use for their own exemption. The DSUE amount can only be used from the estate of the individual who was the most recently deceased spouse.
Rubik's Cube of Estate Planning Ideas for Estates under $10MMDominic Pepper
Some of the newest ideas for estate planning for families with assets below the Federal Exemption. Set to adjust for inflation, the current exemption is $5.34MM for an individual and $10.68MM for a married couple.
Learn about J.E.S.T., Gap QTIP, Gains tax planning etc.
Why would your death be a taxable event when you have paid taxes all of your life? Your estate is the remainder that you have left after paying these taxes.
Learn more about estate tax in Vermont in this presentation.
Rubik's Cube of Estate Planning Ideas for Estates under $10MMDominic Pepper
Some of the newest ideas for estate planning for families with assets below the Federal Exemption. Set to adjust for inflation, the current exemption is $5.34MM for an individual and $10.68MM for a married couple.
Learn about J.E.S.T., Gap QTIP, Gains tax planning etc.
Why would your death be a taxable event when you have paid taxes all of your life? Your estate is the remainder that you have left after paying these taxes.
Learn more about estate tax in Vermont in this presentation.
Since January 01, 2018, the 2015 Penal Code (amended in 2017) has entered into force in Vietnam. One of the most concerned regulations therein is the imposition of criminal liability up to 03 years of imprisonment on unlawful dismissals. This insight will assess how much impact this regulation can cause to the employers in Vietnam and what the employers should do in response.
• Is criminal liability for unlawful dismissals new from the 2015 Penal Code?
• What is the current criminal liability and how it is enhanced?
• What should the employers do to minimize the risk of criminal liability?
View our article here: https://letranlaw.com/insight/enhanced-criminal-liability-for-unlawful-dismissals/
In Issue 12 of The OHL Wire, we look at how the rise in minimum wage affects you and what are the hidden costs of retirement villages in NSW. We also look at everything you need to know about estate administration. We discuss whether now is the right time to legalise same-sex marriage in Australia. We check out upcoming events in Sydney and invite you to attend a unique and entertaining activity, Mozart’s classic comedic opera - The Marriage of Figaro.
The Welfare Benefit Reforms/ Austerity Measures implemented by the British Government. This presentation explorers the measures what they are and how they affect people living on welfare benefits.
An Overview of Some Sophisticated Estate Planning Strategies for individuals who are concerned about minimizing gift and estate taxes, and individuals who have specific goals such as transferring a business interest, providing for a favorite charity, or protecting assets from future creditors.
Please keep in mind that this presentation is intended only to give a general overview of some sophisticated planning strategies, and that these strategies are subject to various technical considerations. Some of them may or may not be appropriate in your particular situation, so you’ll need to consult your estate planning advisor to determine whether they are right for you.
Estate Planning For The Business Owner Updated 1 5 2011 For 2010 Tax ActDeborahPechetQuinan
This presentation reviews federal and Massachusetts estate tax laws and applies the law and valuation discounting concepts to the closely-held business owner, and reviews pre-sale/appreciation event estate tax minimization planning opportunities.
Wassim Zhani Federal Taxation Chapter 4 Personal and Dependency Examptions; F...Wassim Zhani
Wassim Zhani Federal Taxation Chapter 4 Personal and Dependency Examptions; Filing Status; Determination of Tax for Individual, Filing Requirements.pdf
Since January 01, 2018, the 2015 Penal Code (amended in 2017) has entered into force in Vietnam. One of the most concerned regulations therein is the imposition of criminal liability up to 03 years of imprisonment on unlawful dismissals. This insight will assess how much impact this regulation can cause to the employers in Vietnam and what the employers should do in response.
• Is criminal liability for unlawful dismissals new from the 2015 Penal Code?
• What is the current criminal liability and how it is enhanced?
• What should the employers do to minimize the risk of criminal liability?
View our article here: https://letranlaw.com/insight/enhanced-criminal-liability-for-unlawful-dismissals/
In Issue 12 of The OHL Wire, we look at how the rise in minimum wage affects you and what are the hidden costs of retirement villages in NSW. We also look at everything you need to know about estate administration. We discuss whether now is the right time to legalise same-sex marriage in Australia. We check out upcoming events in Sydney and invite you to attend a unique and entertaining activity, Mozart’s classic comedic opera - The Marriage of Figaro.
The Welfare Benefit Reforms/ Austerity Measures implemented by the British Government. This presentation explorers the measures what they are and how they affect people living on welfare benefits.
An Overview of Some Sophisticated Estate Planning Strategies for individuals who are concerned about minimizing gift and estate taxes, and individuals who have specific goals such as transferring a business interest, providing for a favorite charity, or protecting assets from future creditors.
Please keep in mind that this presentation is intended only to give a general overview of some sophisticated planning strategies, and that these strategies are subject to various technical considerations. Some of them may or may not be appropriate in your particular situation, so you’ll need to consult your estate planning advisor to determine whether they are right for you.
Estate Planning For The Business Owner Updated 1 5 2011 For 2010 Tax ActDeborahPechetQuinan
This presentation reviews federal and Massachusetts estate tax laws and applies the law and valuation discounting concepts to the closely-held business owner, and reviews pre-sale/appreciation event estate tax minimization planning opportunities.
Wassim Zhani Federal Taxation Chapter 4 Personal and Dependency Examptions; F...Wassim Zhani
Wassim Zhani Federal Taxation Chapter 4 Personal and Dependency Examptions; Filing Status; Determination of Tax for Individual, Filing Requirements.pdf
What is the Unlimited Marital Estate Tax Deduction in OhioBarry H Zimmer
In this paper, we will look at the unlimited marital estate tax deduction, but we should first explain some things about the federal estate tax from an overview. Learn more about unlimited marital estate tax deduction in Ohio in this presentation.
In Issue 11 of The OHL Wire, we look at what will change on 1 July 2015 and how does divorce affect your tax and super fund. We also look at everything you need to know about taxation and deceased estates in Australia. We discuss the rules and requirements for buying property through a self-managed super fund (SMSF) in NSW. We check out upcoming events in Sydney and provide you a few ideas on how to spend your tax refund as the tax year is coming to an end.
1. Portability Regulations and Applicability
Portability can be a very complicated situation to any person, especially during a
time of mourning, and not wanting to lose more than you already have.
What is Portability and How Can it Help me?
Portability was an amendment to the Job Creation Act of 2010 which stated “to allow
the estate of a decedent who is survived by a spouse to make a “portability election” in
which allows the surviving spouse to apply the Deceased Spouse Unused to Exclusion
(DSUE) amount of the surviving spouses own transfers during life and death” and
became permanently affective June 16, 2015 (unless the spouse became deceased
from January 1, 2001 through June 12, 2015) and is for qualified U.S Citizens.
Current portability requirements:
1. decedent must be a U.S Citizen
2. The DSUE amount portability election must be made on a timely 706 within 9
months of death, or, when allowed, within 15 months using automatic extension
3. The estate tax return must be complete and properly prepared
4. The unused exclusion amount may only be used from the “last deceased
spouse”
Because this still holds lots of financial jargon, lets break it down by requirement;
1. Descendent Must be a U.S Citizen:
This one is self-explanatory, although there are exceptions to spouse who
became U.S citizens after the passing of their spouses, and can utilize portability
starting the day they become citizens. Qualified Domestic Trust Persons also fall
into exemptions to this regulation.
2. The DSUE Amount for Portability Election Must be Made in a Timely
manner:
Let’s start by explaining what a portability election is and how it is made;
The decedent’s executor is responsible for the decision of whether to make the
portability election or not, however, when there is no existing no executor, anyone that
is in the possession of the decedent’s property can elect to file the tax return.
2. The Estate Tax Return Must be Complete and Properly Prepared
The surviving spouse is required to file an estate tax return within 9 months of death, or,
when allowed by the IRS within 15 months using automatic extension. This estate tax
return must be complete and submitted because it is over the federal income amount
(5.45 mill in 2016) and an extension for 15 months after date of passing cannot be
granted if the estate is over that amount, however, if the estate is under the amount the
IRS may grant an extension in order to elect portability.
By now you’re probably wondering how to calculate DSUE since it seems to play a
major role in being able to elect or qualify for portability;
How to Calculate the DSUE
- Find the basic exemption rate for that year
- If descendent paid gift tax on taxable gifts because the taxable gifts exceeded
the applicable exemption amount at the time of gift
- Then these gifts are exempted from adjusted taxable gifts for purposes of
computing the descendants DSUE amount
This adjustment is necessary so that the descendants’ exemption amount is not
used for amounts on which gifts tax is paid.
- Final regulations state that eligibility for the estate tax credit does not factor into
the calculation of the DSUE amount
- It is calculated by subtracting the applicable credit and then applying the credits
from the 2012 through 2015 sections.
3. Last deceased spouse provision
The surviving spouse can claim any unused exclusion amount that is left over from the
death of the first spouse to die, but the descendent must be the survivors’ last deceased
spouse (the most recent deceased individual who was married to the surviving spouse
at the individuals death, other rules for those with more than one deceased spouse.