The federal estate tax is often called “voluntary” because—with proper planning—most families can avoid it entirely. You only pay if you choose not to plan (or overlook key opportunities). One of the most powerful, straightforward tools for married couples is **portability**, which lets you combine both spouses’ lifetime exemptions to shield up to twice the individual amount from federal estate tax.
In 2026, the federal estate and gift tax exemption stands at $15 million per person (or $30million for a married couple), indexed for inflation going forward. This high threshold—made permanent under recent legislation—means far fewer estates face federal estate tax. But portability remains a smart, low-effort safeguard, especially for uncertainty, growth in asset values, or blended families.
How Portability Works
When the first spouse passes away, if their taxable estate is below the exemption amount (or all assets pass to the surviving spouse via the unlimited marital deduction), their unused exemption—called the Deceased Spousal Unused Exclusion (DSUE)—can be “ported” to the surviving spouse.
-The surviving spouse then adds the DSUE to their own exemption.
-This effectively doubles the tax-free amount available when the second spouse passes.
Key requirement: Portability isn’t automatic. You must file IRS Form 706 (United States Estate Tax Return) timely—generally within 9 months of the first spouse’s death (extensions are available). Elect portability on that return, even if no tax is due.
Important remarriage rule: A surviving spouse can only use the DSUE from their most recently deceased spouse. If you remarry and the new spouse passes first, you lose access to any prior DSUE unless preserved properly.
Example: Sue’s first husband Bob died in 2020 with $5 million unused exemption; she ported it. She later married Phil, who died in 2025 with only $2 million unused. If Sue doesn’t file Form 706 for Phil, she automatically loses Bob’s larger $5 million DSUE because Phil is now her most recently deceased spouse—highlighting why filing is critical even when unnecessary for tax payment.
Why Portability Matters (Even with High Exemptions)
-Maximizes tax-free transfers: Ensures both spouses’ full exemptions are used, avoiding unnecessary tax on estates that grow over time.
-Simple and flexible: No need for complex trusts just for tax purposes in many cases.
-Blended family protection: Portability pairs well with trusts (e.g.,QTIP or bypass trusts) to provide for a surviving spouse while controlling ultimate distribution to children from prior relationships.
Portability Isn’t the Whole Story—Trust Planning Still Matters
Even with portability and today’s high exemption, lifetime estate planning remains essential for everyone—not just the ultra-wealthy.
-Protect against incapacity (powers of attorney, advance directives)
– Avoid probate and maintain privacy.
-Control distributions (e.g., staggered payouts to young heirs).
-Shield assets from creditors, divorce, lawsuits, or spendthrift risks.
-Provide for special-needs beneficiaries without jeopardizing government benefits.
-In second marriages or blended families, trusts let the first spouse to die ensure the survivor iscared for while preserving assets for children from prior relationships.
Practical Steps to Consider Now
-Review whether federal estate taxes are a concern for your situation—most families are well below the threshold, but asset appreciation can change that.
-If your spouse passes, consult an estate planning attorney promptly about filing Form 706 toelect portability—it’s often beneficial even if no tax is owed.-For high-net-worth couples or those with potential growth, discuss lifetime gifting or trusts tolock in exemptions.-If remarriage or a seriously ill spouse is in play, explore using any existing DSUE throughstrategic gifts before it’s lost.-Always work with qualified professionals to prepare and file Form 706 correctly.Estate planningis about more than taxes—it’s about protecting your spouse, your family, yourlegacy, and your wishes during life and after. Portability is a simple way to double your taxshield, but pairing it with comprehensive planning gives true peace of mind.Readyto see how portability and other strategies fit your situation? Reach out today for aconfidential review—we’re here to help ensure your plan minimizes taxes and maximizessecurity for the ones you love.Have you discussed portability with your spouse oradvisor? Share your thoughts in thecomments!
