Cannon Trust School Level I Practice Exam

To activate portability, which action must the executor take?

Filing a timely estate tax return The estate must be subject to state taxes The executor must file a petition with probate court The executor must elect portability

Correct Answer:

The executor must elect portability

Explanation:

Portability lets the surviving spouse use the unused federal estate tax exemption from the first spouse to die. To activate it, the executor must elect portability by filing the deceased spouse’s estate tax return and reporting the unused exemption on that return. This election is what transfers the DSUE amount to the surviving spouse’s estate plan, and it must be made timely (typically by 9 months after death, with extensions). The existence of state taxes or probate petitions aren’t what trigger portability. The important action is making the portability election on the estate tax return.

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