What is Estate Tax Portability?

Before 2010, married couples could pass on up to two times the federal estate tax exemption by including "A-B Trusts" or "A-B-C Trusts" in their estate plan. Because TRA 2010 was a temporary law, many wondered if portability was a concept that would only work for those dying in 2011 and 2012.  We can stop wondering.  The “American Taxpayer Relief Act of 2012” (ATRA) is now "permanent" law.  Under ATRA, portability is a constant principal going forward. Now married couples may use “portability” to add any unused portion of the estate tax exemption of the first spouse to die to the...