Mr.and Mrs.Holt made no taxable gifts during their lifetimes.Mrs.Holt died two years ago.Her estate tax return shows that she owed no estate tax and had an $800,000 unused lifetime exclusion.Mr.Hold died in 2019.The lifetime transfer tax exclusion available to his estate is $12.2 million.

Question

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Mrs. Holt's unused lifetime exclusion can be transferred to Mr. Holt's estate under the portability rule, allowing his estate to use both his own exclusion and the unused portion of Mrs. Holt's exclusion.

MrAnd MrsHolt Made No Taxable Gifts During Their Lifetimes