What does “portability” mean for you, financially? How about for your estate?
The Internal Revenue Code grants spouses tax benefits both during their lives and after their deaths. One of those benefits is “portability,” but what is that? Portability allows a surviving spouse to utilize the unused portion of the Applicable Exclusion Amount left from their predeceased spouse.
If this all sounds a bit complicated, please find a more detailed explanation on the AAEPA’s website here.