Tax Cuts and Jobs Act supercharges exemption portability
Abstract: Somewhat lost in the clamor of the tax changes enacted by the Tax Cuts and Jobs Act is the fact that the new law preserves the “portability” provision for married couples. Portability allows an estate to elect to permit the surviving spouse to use any of the deceased spouse’s available estate tax exemption that is unused at his or her death. This article details why the increased gift and estate tax exemption amount makes portability a more powerful technique. A sidebar notes how the generation-skipping transfer tax exemption is treated under the new law.