When the first spouse dies,if the executor so elects on a couple's estate tax return,then any unused applicable exclusion amount will carry over to the other spouse.This is referred to as __________.

Question

When the first spouse dies,if the executor so elects on a couple's estate tax return,then any unused applicable exclusion amount will carry over to the other spouse.This is referred to as __________. ​

Quizplus · Accepted Answer

The term referred to in the question is portability. Portability allows a surviving spouse to use any portion of their deceased spouse's unused applicable exclusion amount for their own estate tax purposes. This means that a couple can potentially shield up to double the amount of assets from estate taxation.

When the First Spouse Dies,if the Executor So Elects on a Couple's