Instructions For Form 706 - 2016 (Page 18 of 54) in pdf

designation of the last deceased

Table of Estimated Values

spouse and does not prevent the

surviving spouse from applying the

If the total estimated value of

DSUE amount to taxable transfers.

the assets eligible for the

special rule under Reg.

When a taxable gift is made, the

section 20.2010-2(a)(7)(ii) is

Include this amount on lines

DSUE amount received from the last

more than

But less than or equal to

10 and 23:

deceased spouse is applied before the

$250,000

surviving spouse’s basic exclusion

amount. A surviving spouse may use

$250,000

$500,000

the DSUE amount of the last deceased

$500,000

$750,000

spouse to offset the tax on any taxable

$750,000

$1,000,000

transfer made after the deceased

spouse's death. A surviving spouse who

$1,000,000

$1,250,000

has more than one predeceased

$1,250,000

$1,500,000

spouse is not precluded from using the

DSUE amount of each spouse in

$1,500,000

$1,750,000

succession. A surviving spouse may not

$1,750,000

$2,000,000

use the sum of DSUE amounts from

$2,000,000

$2,250,000

multiple predeceased spouses at one

time nor may the DSUE amount of a

$2,250,000

$2,500,000

predeceased spouse be applied after

$2,500,000

$2,750,000

the death of a subsequent spouse.

$2,750,000

$3,000,000

Making the Election

$3,000,000

$3,250,000

A timely-filed and complete Form 706 is

$3,250,000

$3,500,000

required to elect portability of the DSUE

$3,500,000

$3,750,000

amount to a surviving spouse. The filing

requirement applies to all estates of

$3,750,000

$4,000,000

decedents choosing to elect portability

$4,000,000

$4,250,000

of the DSUE amount, regardless of the

$4,250,000

$4,500,000

size of the estate. A timely-filed return is

one that is filed on or before the due

$4,500,000

$4,750,000

date of the return, including extensions.

$4,750,000

$5,000,000

The timely filing of a complete Form

$5,000,000

$5,250,000

706 with DSUE will be deemed a

$5,250,000

$5,450,000

portability election if there is a surviving

spouse. The election is effective as of

the decedent’s date of death, so the

gifts is less than the basic exclusion

or her last deceased spouse (defined

DSUE amount received by a surviving

amount (see section 6018(a)) and Form

later) against any tax liability arising

spouse may be applied to any transfer

706 is being filed only to elect portability

from subsequent lifetime gifts and

occurring after the decedent’s death. A

of the DSUE amount, the estate is not

transfers at death.

portability election is irrevocable, unless

required to report the value of certain

an adjustment or amendment to the

Note. A nonresident surviving spouse

property eligible for the marital or

election is made on a subsequent return

who is not a citizen of the United States

charitable deduction. For this property

filed on or before the due date.

may not take into account the DSUE

being reported on Schedule M or O,

amount of a deceased spouse, except

Note. Under Regulations section

enter on line 23 the amount from line 10.

to the extent allowed by treaty with his

20.2010-2(a)(5), the executor of an

Part 6—Portability of

or her country of citizenship.

estate of a nonresident decedent who

was not a citizen of the United States at

Deceased Spousal Unused

Last Deceased Spouse

the time of death cannot make a

Exclusion (DSUE)

Limitation

portability election.

Section 303 of the Tax Relief,

The last deceased spouse is the most

If an executor is appointed, qualified,

Unemployment Insurance

recently deceased person who was

and acting with the United States on

Reauthorization, and Job Creation Act

married to the surviving spouse at the

behalf of the decedent’s estate, only

of 2010 authorized estates of decedents

time of that person’s death. The identity

that executor may make or opt out of a

dying after December 31, 2010, to elect

of the last deceased spouse is

portability election. If there is no

to transfer any unused exclusion to the

determined as of the day a taxable gift is

executor, see Regulations section

surviving spouse. The amount received

made, or in the case of a transfer at

20.2010-2(a)(6)(ii).

by the surviving spouse is called the

death, the date of the surviving spouse's

Opting Out

deceased spousal unused exclusion, or

death. The identity of the last deceased

DSUE, amount. If the executor of the

spouse is not impacted by whether the

If an estate files a Form 706 but does

decedent’s estate elects transfer, or

decedent's estate elected portability or

not wish to make the portability election,

portability, of the DSUE amount, the

whether the last deceased spouse had

the executor can opt out of the

surviving spouse can apply the DSUE

any DSUE amount available.

portability election by checking the box

amount received from the estate of his

Remarriage also does not affect the

indicated in Section A of this Part. If no

-18-

Part Instructions

Instructions For Form 706 - 2016 Page 18

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