Portability
Certified Financial Planner glossary · Certified Financial Planner
Definition
The election permitting a surviving spouse to use the deceased spouse’s unused basic exclusion amount; requires a timely Form 706 and does not extend to the generation-skipping exemption.
Portability in plain English
A spouse dies with unused estate-tax exclusion still on the table, and the survivor wonders whether that leftover disappears. Portability is the election that lets the survivor pick up the deceased spouse's unused basic exclusion amount, but only if a timely Form 706 is filed. Lock the precise rule: the election permits a surviving spouse to use the deceased spouse's unused basic exclusion amount; it requires a timely Form 706 and does not extend to the generation-skipping exemption. On stems, do not treat GST exemption as portable the way the basic exclusion can be.
Related Certified Financial Planner terms
Certified Financial Planner practice questions · Certified Financial Planner flashcards · Certified Financial Planner study guide