When planning your estate, it’s easy to focus on wills, trusts, and tax-saving strategies you can implement during life. But there’s another opportunity—one that’s often missed—that could save your family millions in estate taxes: portability.
At Axis Estate Planning, we believe thoughtful planning includes knowing all your options. And when it comes to married couples and estate tax, portability can make a big difference—but only if it’s used the right way.
What Is Portability?
Portability allows a surviving spouse to claim any unused portion of their deceased spouse’s federal estate tax exemption. In 2025, that exemption is $13.99 million per person. With portability, a married couple may shelter up to $27.98 million from federal estate tax.
But here’s the catch: portability isn’t automatic.
How It Works
To preserve the unused exemption:
- The estate of the first spouse to pass away must file Form 706, the federal estate tax return.
- Even if no estate tax is owed, the form must still be filed to make the portability election.
- The deadline is generally nine months from the date of death (extensions available).
Miss this window, and the unused exemption is lost forever.
Why Portability Matters Now
Under current law, the estate tax exemption is set to sunset at the end of 2025, dropping back to around $7 million per person (adjusted for inflation).
This means that families who elect portability now could preserve today’s higher exemption—even if it decreases in the future. In a time of financial uncertainty, this creates a valuable buffer for your family’s legacy.
Important Limitations
While portability is a helpful tool, it’s not a one-size-fits-all solution. Consider these limitations:
- It’s a Post-Death Election
Portability can only be used after the death of a spouse—and must be elected in time. - No Help with GST Tax
Portability doesn’t apply to the generation-skipping transfer (GST) tax, so it won’t benefit grandchildren or later generations. - State Estate Taxes
Some states have their own estate tax systems and do not allow portability, which could create unexpected tax consequences—even if federal estate tax is avoided.
Is Portability Right for You?
While portability offers tremendous potential for tax savings, it should be viewed as one part of a broader estate plan. Other tools—like irrevocable trusts, lifetime gifting, and charitable giving—can often provide even greater flexibility and control.
With major changes to federal estate tax law looming, now is the time to review your estate plan and make sure you’re positioned to protect what matters most.
Let’s Make Sure Your Plan Is Ready—When It Matters Most.
Axis Estate Planning is here to guide you through every detail, from estate tax strategies to Medicaid planning and beyond. We take pride in offering trusted, thoughtful guidance that’s built around your goals.
Visit Us: 900 Wilshire Drive, Suite 105, Troy, MI 48084
Call Us: (248) 251-1001
Learn More: www.axisattorneys.com
Axis Estate Planning
Trusted. Thoughtful. Here for what matters most.
