Portability is an attractive new feature added to recent estate-tax law. It permits any estate and gift tax exemption that was not used when the first spouse died to pass to the surviving spouse. Many executors were not aware that a portability election had to be made on a timely basis.

Since the current federal estate and gift tax exemption is $5.34 million, most of us have not given estate tax much thought. But assets can grow over time, and a surviving spouse or her heirs might someday wish to have that extra exemption.

The IRS is offering a second chance for the estates of decedents who died after December 31, 2010 and before January 2, 2014. Their executors must file Form 706 by December 31 of this year, headed by this statement “Filed Pursuant to Rev. Proc. 2014-18 to Elect Portability Under Section 2010(c)(5)(A).” Filers may even qualify for a refund where too much tax was paid.

For nearly 30 years, Mike Nickerson has owned and managed a small, full-service accounting practice in the Midcoast. He holds a bachelor's degree in accounting from University of Southern Main and a master's degree in financial planning from Bentley University.

He is a past board member and president of the Maine Society of Certified Public Accountants and currently serves on the Maine Board of Accountancy.

An aged rock musician, Nickerson now finds musical enjoyment playing upright and electric bass in a variety of bands spanning folk to jazz music genres. He and his wife have three grown children, and they enjoy their free time hiking, kayaking, golfing, bicycling and motorcycling.

http://www.nickersonpa.com/