Accredited Wealth Management Advisor (AWMA) Exam 3 Practice Test

Estate tax portability requires timely filing.

True False It requires nothing It is automatic without forms

Correct Answer:

True

Explanation:

Portability hinges on making a timely election for the deceased spouse. The unused federal estate tax exemption that belonged to the first spouse to die can be added to the surviving spouse’s exemption, but that only happens if the executor files the deceased spouse’s estate tax return to elect portability. That election is made on Form 706 and must be filed by the due date, typically nine months after death, with the possibility of extending the deadline (up to about 15 months) if a timely extension is requested. If the filing isn’t timely, the opportunity to transfer the unused exemption is lost in most cases, so portability depends on meeting that deadline.

Access more questions from this quiz

Continue to Accredited Wealth Management Advisor (AWMA) Exam 3 Practice Test for more practice questions and the full quiz experience.

Access More Questions