Electing Portability Of Unused Estate Tax

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Last Updated: Nov 11, 2024

Read Time: 3 mins

When it comes to estate planning, Texas residents often overlook the powerful strategy of electing portability of unused estate tax exemption. This technique can offer substantial benefits for married couples, ensuring their assets are passed on efficiently and securely. Attorney Stuart A. Green, based in Houston and serving clients across Texas as a Houston, TX estate tax lawyer, frequently advises on this essential yet underutilized option.

What Portability Entails

Portability allows the surviving spouse to inherit any unused portion of the deceased spouse’s estate tax exemption. For example, if one spouse uses $5 million of their $13.61 million exemption, the remaining $8.61 million can be transferred to the surviving spouse, offering significant tax savings.

Common Reasons Portability Is Overlooked

Many couples in Texas might overlook portability due to:

• Lack Of Awareness: Many are simply unaware of this option.

• Misconceptions: Some may believe their assets won’t exceed the exemption amount, ignoring potential future growth or inflation.

• Complexity: The process can seem complicated without proper guidance.

Real-Life Scenario In Texas

Stuart A. Green started his firm in 2021 and has worked with many people in Texas within this type of law. Imagine a couple, Sarah and Robert, living in Houston. Robert passes away in 2024, leaving an estate valued at $10 million. By electing portability, Sarah can add Robert’s unused exemption to her own. This means Sarah now has an estate tax exemption of $17.22 million, offering her significant tax savings and flexibility for future planning.

Steps To Elect Portability

To benefit from portability, specific actions must be taken:

• Filing An Estate Tax Return: The surviving spouse must file Form 706 (Estate Tax Return) for the deceased spouse within nine months of their death, with a possible six-month extension.

• Indicating Portability Election: The form must clearly state that the surviving spouse is electing portability of the unused exemption.

• Maintaining Records: Detailed records of the estate and the portability election should be kept for future reference.

Understanding The Basics Of Estate Tax Exemption

In 2024, the federal estate tax exemption is set at $13.61 million per individual. This means that if your estate is valued below this amount, it will not be subject to federal estate taxes. For married couples, the potential exemption doubles to $27.22 million, provided they elect portability of any unused exemption.

Advantages Of Electing Portability

Texas residents can gain several advantages from electing portability:

• Increased Exemption: Combining both exemptions can shield up to $27.22 million from estate taxes.

• Flexibility: This strategy allows for more flexible future estate planning.

• Peace Of Mind: Knowing a large portion of the estate is protected from taxes provides reassurance for the surviving spouse and beneficiaries.

Why Texas Residents Should Consider Portability

Attorney Stuart A. Green, who works with clients throughout Texas, emphasizes the importance of this strategy. He notes that Texas residents often have substantial assets, including real estate and business interests, which can grow significantly over time. Electing portability ensures that these assets are protected from federal estate taxes, providing long-term financial security for families.

Electing portability of unused estate tax exemption is a powerful tool for married couples in Texas. It helps protect assets from hefty estate taxes, ensuring financial security for loved ones. Texas residents are encouraged to be proactive in their estate planning, stay informed about their options, and seek professional advice from experts like Attorney Stuart A. Green in Houston. By considering portability, you can make a significant difference in your estate plan and secure a better future for your family. Licensed in Texas as well as Kentucky, Pennsylvania, and South Dakota, Stuart Green Law, PLLC is ready to help you with all things estate planning.

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Client Testimonials

    
 
 
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   Angélique Pfab Green 
 
 
 
 Trustindex verifies that the original source of the review is Google. Stuart Green is incredibly knowledgeable and clearly operates at a very high level. His approach to estate planning and wealth strategy is thoughtful, modern, and well beyond the traditional. You can tell he genuinely cares about helping people protect what they’ve built. Truly impressive work and reputation.
  
 
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   Maria Cardenas Anderson 
 
 
 
 Trustindex verifies that the original source of the review is Google. I had an excellent experience working with Stuart Green on my trust and will documents. From start to finish, he was incredibly responsive, patient, and thorough. He took the time to explain everything clearly, ensuring I fully understood each step of the process. Even after the trust was complete, he guided me on what still needed to be done — something I really appreciated. Stuart’s professionalism and kind demeanor made what could have been an overwhelming experience so much easier. I felt informed and supported every step of the way. I would highly recommend him to anyone looking for a knowledgeable and attentive probate lawyer. Thank you, Stuart!
  
 
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   katelyn rennie 
 
 
 
 Trustindex verifies that the original source of the review is Google. Stuart is outstanding! We have been so impressed with his knowledge.
  
 
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   Chris Stinson 
 
 
 
 Trustindex verifies that the original source of the review is Google. Stuart Green is an exceptional estate attorney. He handled my father's living will and then his estate after his passing, as well as helping my mother finalize and complete her estate in conjunction with my father's death. Currently, he is handling the living will and estate planning for me and my wife and our family. I highly recommend him and his integrity of work.
  
 
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   Alejandra 
 
 
 
 Trustindex verifies that the original source of the review is Google. My experience with Stuart Green Law was a 10/10. They were professional and efficient, resolving my case quickly. I highly recommend them!
  
 
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   Joseph Marchetti 
 
 
 
 Trustindex verifies that the original source of the review is Google. Great guy - honest businessman.  Has been very helpful for me in providing feedback and input from a law perspective on employment and legal agreements in my personal and professional life.  Would heartily recommend Stuart to others!
  
 
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   Will Desrochers 
 
 
 
 Trustindex verifies that the original source of the review is Google. I have worked with Mr. Green for awhile now and can't recommend him highly enough. He is professional and and timely with his responses to my questions. I really appreciate how he helps me understand the plan for my estate. I look forward to continuing to work with him.
  
 
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   Chuma 
 
 
 
 Trustindex verifies that the original source of the review is Google. I’ve learned a great deal from Stuart on the foundational aspects of estate planning, legacy planning and asset protection. Having had the privilege  to work alongside Stuart, I can also say that he is a top tier counselor and focused on aligning his client’s personal goals with their long term objectives and wishes.
  
 
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   Nick Delsignore 
 
 
 
 Trustindex verifies that the original source of the review is Google. Incredible person to know and be associated with. Stuart provides excellent services, that is undeniable. However you will be hard pressed to find another attorney with a truer moral compass.