Investment News: “Key death tax exclusion hinges on speedy filing”

John O. McManus was recently interviewed by Investment News Reporter Liz Skinner for a story about the need for surviving spouses to swiftly file estate tax returns to guarantee ‘portability’ of unused exclusions. John is quoted throughout the piece.

From the article:

…the estate of someone who died Jan. 1, 2011, should have filed the estate tax return Form 706 by Oct. 3. Another form can be filed for an automatic six-month extension, the IRS said in its notice late last month.

Clients need to be informed of this hitch. The reason? Many don’t file an estate tax return if they don’t owe any taxes (thanks to the exemption on the estate tax), said John McManus, a tax attorney and founder of McManus & Associates. The value of the surviving spouse’s estate could surge before their death, however, and then it would be too late to claim the unused portion of the first spouse’s exemption.

“We just think it is prudent to file the return and seek portability for the surviving spouse,” Mr. McManus said.

Read the full write-up for more important advice on this issue.