Portability (DSUE)
A surviving spouse can use the deceased spouse's unused exemption.
What is Portability (DSUE)?
The deceased spouse's unused exclusion amount (DSUE) can be transferred to the survivor, effectively doubling the couple's shelter. It is not automatic: the executor must elect it on a timely filed estate tax return (Form 706), even if no tax is owed.
Portability (DSUE): a worked example
A spouse dies using none of their exemption; the survivor adds it to their own through portability.
More terms in Clients, Strategy & Tax
Sole Proprietorship
A business owned by one person with no legal separation from the owner.
General Partnership
Co-owners share management and unlimited liability; income passes through.
Limited Liability Company (LLC)
Limited liability for owners with pass-through taxation by default.
C Corporation
A separate taxpayer - profits taxed at the corporate level, then again as dividends.
S Corporation
A corporation that passes income through to shareholders, avoiding double tax.
Trust & Estate Accounts
Accounts run by a fiduciary - a trustee or an executor - under a governing document.
Foundations & Charities
Tax-exempt organizations investing for a mission, often in perpetuity.
Client Profile & Data Gathering
The financial and nonfinancial facts every recommendation must rest on.