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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Tax Preparer

Date & Time
  • event Date

    Wednesday, August 17, 2022

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    110 minutes

Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$197.00

This course will provide tax advisers with a comprehensive guide to the computation and reporting of the deceased spouse's unused exclusion change to the deceased spouse's unused exemption (DSUE). The panel will explain when portability should be elected and demonstrate the calculation to show the DSUE amount transferred from the deceased spouse to the surviving spouse.

Faculty

Daneri James
Shareholder
Blanchard Kranser & French

Mr. Daneri focuses his practice in the areas of estate planning, taxation, and business law. His estate planning practice includes formation of complex irrevocable and revocable trusts, probate, and trust administration. His taxation practice includes corporate, partnership, and individual wealth and tax planning, complex tax transactions, income and employment tax audit defense, and tax-exempt entities. His business law practice includes representation of shareholders, contracts, mergers, labor disputes, succession planning, entity maintenance, and formations.

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Maxwell Robert
Shareholder
Miscellaneous

Mr. Maxwell has been a lecturer and author for Pennsylvania Bar Institute seminars on such topics as Federal Estate and Gift Tax Preparation, Pennsylvania Inheritance Tax Preparation, and Federal Estate Tax Portability. Mr. Maxwell received a B.A. in 1984 and an M.A. in 1986, both from the University of Pennsylvania. In 1989, he received a J.D. from Villanova University School of Law. In 2001, Mr. Maxwell was awarded a certificate in business succession planning from The American College. He is a member of both the Philadelphia and New Jersey Bar Associations, and serves as Secretary of the Probate Section of the Philadelphia Bar. Mr. Maxwell has presented on the topic of Federal Estate Tax Portability for the Probate Section Tax Committee. He is also a member of the Philadelphia Estate Planning Council. Mr. Maxwell teaches Fundamentals of Testamentary Estate Planning as an adjunct professor for the Charles Widger School of Law Graduate Tax Program of Villanova University.

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Description

Portability is a game-changer in estate planning. Whether the federal estate tax basic exclusion amount reverts in 2026 to $5,000,000 as adjusted for inflation under current law or the proposed anti-clawback regulations are enacted, ensuring that the unused exclusion of the first spouse to die can be used by the surviving spouse (or surviving spouse's estate) is a critical part of planning for married couples. Determining the DSUE amount involves complex and critical calculations. When a federal estate tax return is filed for the first spouse, the tax preparer makes the portability election.

The portability regulations require the executor of a decedent's estate to calculate the DSUE and report the amount on the estate tax return to elect portability for the surviving spouse. The regulations define the DSUE amount and prescribe a multi-step process for calculating the unused exemption amount.

The key for tax and estate advisers to remember is that portability is not automatic--the executor must elect it. The election requires filing a Form 706, U.S. Estate Tax Return to report the DSUE amount, even when filing an estate return may not be necessary. The surviving spouse can utilize the DSUE of the deceased spouse as an additional gift or estate tax exclusion. Missing the election to port an exemption can prove costly. Revenue Procedure 2017-34 offers relief for certain untimely elections.

Listen as our experienced panel provides detailed and practical guidance on calculating DSUE amounts and dealing with missed elections, discusses the planning opportunities, and offers illustrations on how to report those amounts on Form 709.

Outline

  1. Estate tax overview: electing portability
  2. Deceased spousal unused exclusion (DSUE)
  3. Calculating and reporting DSUE on IRS Form 706
  4. Reporting DSUE on Form 709
  5. Case illustration: calculating DSUE
  6. Filing Form 706 solely to elect portability
  7. Rev Proc 2022-32 Electing Portability up to 5 Years After Death
  8. Missed elections
  9. Impact of potential law changes on portability

Benefits

The panel will review these and other critical components of estate portability reporting and DSUE calculations:

  • How to calculate DSUE amounts per IRS guidelines
  • Relief for missed portability elections
  • Determining whether to recommend portability election
  • How the anti-clawback proposed regulations affect the estate exemption
  • Reporting DSUE on Estate Tax Return Form 706 for a surviving spouse
  • Reporting DSUE on Gift Tax Return Form 709 for a surviving spouse

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Determine how to calculate DSUE amounts
  • Verify eligibility for relief from missed portability elections
  • Establish whether portability elections are beneficial
  • Ascertain the simplified rules for estates filing Form 706 for the sole purpose of electing portability
  • Decide whether reporting of DSUE on Forms 706 and 709 for a surviving spouse is correctly done

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).