You’ve worked hard to build wealth—but if you’re married and don’t plan ahead, the IRS could be one of your largest beneficiaries. The good news? Federal estate tax is often described as a “voluntary” tax—and we tend to agree. With proper strategy, most families can significantly reduce, or even eliminate, what they owe.
One of the lesser-known tools in this planning arsenal is portability—a tax-saving strategy for married couples that can preserve your wealth across generations with a single, well-timed move. Here’s how it works—and why it matters.
What Is Portability?
When one spouse passes away, the surviving spouse may be able to “inherit” the unused portion of their federal estate tax exemption. This is known as the Deceased Spousal Unused Exclusion (DSUE). By claiming it, the surviving spouse effectively increases their own exemption amount, giving them more room to pass wealth to heirs without triggering federal estate tax.
But there’s a catch: portability isn’t automatic. To lock in your spouse’s DSUE, you must file a federal estate tax return (Form 706)—even if no estate tax is due. And you must do it within nine months of their passing (extensions may apply).
Why It Matters
Let’s start with the basics: The current federal estate tax exemption sits at $13.99 million per person in 2025. That’s a generous amount, but it won’t last forever. Unless Congress intervenes, that exemption is set to drop—by half—starting January 1, 2026.
Translation? Many families who are currently in the clear could find themselves facing an unexpected estate tax bill in the near future. Portability lets you bank your spouse’s unused exemption today, so you can protect more tomorrow.
Planning Considerations (That Most People Miss)
Most high-income couples think they won’t need portability. But wealth can grow quickly—and failing to plan means missing an opportunity that could save millions in taxes.
Here’s a scenario:
Sue is married to Bob. When Bob passes in 2020, he has $5M in unused exemption. Sue files the appropriate estate tax return and locks in Bob’s DSUE.
A few years later, Sue remarries Phil. Phil dies in 2025 with just $2M in unused exemption—but Sue doesn’t file a return for him, thinking she can still rely on Bob’s larger DSUE.
Unfortunately, the IRS only allows a surviving spouse to use the most recently deceased spouse’s DSUE. By default, Phil’s smaller amount overwrites Bob’s. Sue loses access to that $5M.
Bottom line: remarriage can impact portability. If you’ve been widowed and are considering remarrying—or have already remarried—talk to your estate planning attorney. The timing of a tax return could have long-term consequences.
Key Takeaways
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Portability allows married couples to combine unused estate tax exemptions, potentially shielding millions from federal estate tax.
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It’s not automatic—you must file a Form 706 after the first spouse dies, even if the estate isn’t taxable.
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Remarriage matters—you can only use the DSUE of your most recently deceased spouse.
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The exemption is temporary—the current high limits sunset in 2026. If you don’t plan now, you may not be able to take advantage of them later.
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Trust planning is still essential—portability only addresses estate taxes. It doesn’t offer asset protection, probate avoidance, or control over how wealth is distributed.
What Should You Do?
If you’re married and have accumulated wealth—whether that’s in real estate, business interests, or investments—portability should be on your radar. But it’s just one piece of the larger estate planning puzzle.
We can help you:
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Evaluate whether a portability election makes sense for your family
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File the necessary tax return and meet IRS deadlines
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Combine portability with trust strategies for greater protection and flexibility
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Preserve your legacy, support your spouse, and maintain control of your assets
Protect what you’ve built—with intention.
Schedule a confidential consultation to make sure you’re taking advantage of every opportunity the law allows—before the window closes.