How Portability Preserves a Deceased Spouse's Estate Tax Exemption

Lucas and Luna tackle the most underused tax break in estate planning: portability. When one spouse dies, the surviving spouse can inherit their unused federal estate tax exemption — current exemptions total roughly $27 million per couple. Yet over 40% of married couples never file the simple IRS Form 706 to elect portability. Lucas walks through the math: if your spouse dies with a $13.5 million exemption, you can add theirs to your own, shielding $27 million from estate tax. But wait — portability only applies to the estate tax exemption, not to generation-skipping transfer tax exemptions, which are also lost if not used. A real case: a Florida couple with $18 million in assets lost $6 million in potential exemption because they missed the nine-month filing deadline. Luna pushes back: what about state estate taxes? Many states don't recognize portability, so a move from New York to Florida could save millions. They also discuss how portability interacts with credit shelter trusts, and why the SECURE Act's 10-year rule for inherited IRAs makes trust planning trickier. #Portability #EstateTaxExemption #IRSForm706 #EstatePlanning #MarriedCouples #TaxSavings #GenerationalWealth #SpousalExemption #CreditShelterTrust #SECUREAct #InheritedIRA #StateEstateTax #FexingoBusiness #BusinessPodcast #Finance #WealthTransfer #TaxStrategy #LucasAndLuna Keep every episode free: buymeacoffee.com/fexingo