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Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 54846
Experience:  29 years of experience as a tax, real estate, and business attorney.
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If my parents combined assets are under 5.4M is it advisable

Customer Question

If my parents combined assets are under 5.4M is it advisable for each of my parents to file a Federal Estate Tax Return. A friend was telling me about portability which I didn't entirely understand.
Submitted: 1 year ago.
Category: Tax
Expert:  Richard replied 1 year ago.

Good afternoon. My name is ***** ***** I look forward to helping you.

First, unless you think the combination of your parents' estates to aggregate over the $5,450,000 exemption allowed to each of them, no estate tax return would be necessary for either of them when they die. But, if you think that the total estate value would be that large, then you would want to make sure you filed an estate tax return when the first parent died so that the second spouse to die so that they could take advantage of the full $10,900,000 exemption (i.e., $5,450,000 each).

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Customer: replied 1 year ago.
What happens if one parent uses say 2,450,000 of the exemption does the other 3,000,000 get added to the surviving parent giving them a total of 8,450,000 to use when they die?
Expert:  Richard replied 1 year ago.

Yes...as long as the first to die files an estate tax return.