Widow's tax election

[MarkCTX]

Does know anything about a tax election that a widow has regarding the estate left by the deceased husband? Not the legal election where the widow can choose between the rights per the will or the rights offered by state law. The estate is under $5MM and it's a community property state. Any help would be appreciated.

Mark

[Bees Knees]

The election is called the portability election. If the first spouse to die did not use all of his/her estate tax exclusion amount, an election can be made to transfer the unused portion to the surviving spouse. The election must be made by the executor on the estate tax return of the first spouse to die, even if that spouse was below the filing requirement to file an estate return. Absent an election, the surviving spouse is only allowed his/her exclusion amount and the unused portion of the first spouse to die is lost.

An example is given on page 4-2 of the What's New in-Depth book for the 2012 tax year:

Bob's wife, Jane, died in 2011 and only used $2 million of her $5 million exclusion amount. Jane's executor made the portability election when filing her estate tax return. Bob died in 2012. Bob's total estate tax exclusion amount equals $8,120,000 ($3 million unused amount from Jane, plus his $5,120,000 exclusion amount).

[MarkCTX]

Thanks for the heads up on that!

Mark