Simulation

How Portability Saves a Married Couple Estate Tax

For a $20,000,000 estate, using portability gives the couple the full $30,000,000 combined exemption, so federal estate tax is $0. Without portability - if the first spouse's unused exclusion is not properly elected - only $15,000,000 is shielded and the estate owes about $2,000,000 at the 40% rate. Electing portability on the first death (Form 706) can be worth millions, yet many families miss the deadline.

Results

Visualization

EstateFig provides estimates for educational purposes only. Estate, gift, and inheritance tax rules are complex, vary by state, and change frequently (several state thresholds adjust for inflation each year). This is not legal or tax advice. Consult a qualified estate-planning attorney or CPA for your situation. Figures reflect 2026 thresholds published by state revenue departments and the IRS; always verify the current rate with the relevant authority before relying on any number.

How It Works

The 2026 federal estate tax exemption is $15,000,000 per person, $30,000,000 for a married couple when portability is elected. Portability lets the surviving spouse use the first spouse's unused exclusion (DSUE). We compute tax at 40% on the amount above the applicable exemption, with and without portability, and show the difference. This models only the federal tax; state estate tax is separate and handled by the other tools.

What Should You Do?

Portability is not automatic - the executor must file a federal estate tax return (Form 706) for the first spouse to die, even if no tax is due, to lock in the unused exclusion. Missing this can cost millions for estates between $15M and $30M. Keep the election on the radar in your plan and revisit old trusts drafted when exemptions were lower. This is educational; confirm filing requirements with an estate attorney.

Frequently Asked Questions

Is portability automatic?

No. The surviving spouse keeps the deceased spouse's unused exclusion only if an estate tax return is filed for the first death. Many families miss this.

How much can it save?

Up to the 40% rate on the unused exclusion amount - potentially millions for estates between $15M and $30M.

Does this include state tax?

No. State estate taxes are separate and can apply well below $15M. Use the by-state tool for the state piece.

Should we still use a credit shelter trust?

Portability reduced the need for complex trusts, but trusts still help with asset control, creditors, and state tax. Review old trusts with counsel.