Home Guides & Resources chevron_right Financial Planning Tax-Proof Your Estate With the DSUE Updated May 30, 2023 Estate planning parlance is chock-full of acronyms. We recently wrote about SLATs and CRTs, and there’s another we’d like to share: A deceased spousal unused exclusion (DSUE). According to our manager of financial planning, Andrew Busa, the DSUE is one of the most important financial planning tools, but most people have never heard of it. Why is the DSUE so notable? It maximizes estate benefits for high-net-worth married couples. The current federal gift and estate tax exemption for individuals is $12.9 million—and it’s twice that for married couples. With a deceased spousal unused exclusion, the estate of a surviving spouse can benefit from the unused portion of the decedent’s exemption, thereby shielding additional assets from estate tax. Also known as a “portability election,” this combined exemption maximizes benefits for families that would otherwise contend with a top estate tax rate of 40%. And keep in mind that the federal gift and estate tax exemption for individuals is scheduled to revert to $5 million (subject to inflation indexing) in 2026—meaning many more families may benefit from portability. If there is a reasonable chance that your estate may exceed the federal estate tax exemption, let’s talk in our next meeting about the logistics of filing the tax paperwork to make a portability election in the future. It’s an admittedly complicated and often costly process, but it could also be one of the more consequential financial planning moves you can make if your estate qualifies. Call us if you have any questions about DSUEs or your overall estate plan. If you are a client, please reach out and we’d be more than happy to help. If you are not a client, click here to book a meeting with one of our expert financial advisors now! This material is distributed for informational purposes only. The investment ideas and opinions contained herein should not be viewed as recommendations or personal investment advice or considered an offer to buy or sell specific securities. Data and statistics contained in this report are obtained from what we believe to be reliable sources; however, their accuracy, completeness or reliability cannot be guaranteed. Our statements and opinions are subject to change without notice and should be considered only as part of a diversified portfolio. You may request a free copy of the firm’s Form ADV Part 2, which describes, among other items, risk factors, strategies, affiliations, services offered and fees charged. Past performance is not an indication of future returns. Tax, legal and insurance information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice, or as advice on whether to buy or surrender any insurance products. Personalized tax advice and tax return preparation is available through a separate, written engagement agreement with Adviser Investments Tax Solutions. We do not provide legal advice, nor sell insurance products. Always consult a licensed attorney, tax professional or licensed insurance professional regarding your specific legal or tax situation, or insurance needs. Companies mentioned in this article are not necessarily held in client portfolios and our references to them should not be viewed as a recommendation to buy, sell or hold any of them. © 2023 Adviser Investments, LLC. All Rights Reserved. Tags: estate planningfinancial planning