52 THE QUEENS COURIER • HEALTH • DECEMBER 7, 2017 FOR BREAKING NEWS VISIT WWW.QNS.COM
health
The Elder Law Minute TM
Basics of Estate Planning: Portability
BY RONALD A. FATOULLAH, ESQ.
AND EVA SCHWECHTER, ESQ.
When a loved one dies, many people
are unsure of how to proceed
with respect to settling the decedent’s
estate. Specifi cally, people are
oft en unclear on what taxes will be
due, and which forms they will be
required to fi le. In terms of the federal
estate tax, a federal estate tax
return does not need to be fi led
unless the decedent’s taxable estate
exceeds the federal estate tax exclusion
amount. Please note that a discussion
of the implications for the
state estate tax is beyond the scope of
this article; the focus is solely on the
federal estate tax requirements.
In 2017, the federal estate tax
exclusion amount is $5.49 million
for an individual, or $10.9 million for
a couple. Th us if a person dies with
ELDER LAW
a taxable estate of less than $5.49
million, no estate tax will be due.
However, it may still be prudent to
fi le an estate tax return (Form 706)
on behalf of the decedent’s estate so
as to elect “portability”. Portability
is a means by which the surviving
spouse can “use” the deceased
spouse’s unused portion of his or her
estate tax exclusion amount.
For example, if John Doe passed
away in 2017 with a taxable estate of
$3 million, the unused portion of his
federal estate tax exclusion amount
would be $2.49 million. Th us no
estate tax would be due and John’s
estate would not be required to fi le
an estate tax return. However, Jane
would only be able to utilize John’s
unused exemption (thereby increasing
her estate tax exclusion amount
from $5.49 million to $7.98 million)
if she fi led an estate tax return
for John, electing for “portability.”
Electing for portability can preserve
fl exibility for the second spouse, even
if an estate tax return is not otherwise
required.
Th e estate tax return is a complex
document and should be completed
and fi led by a professional.
Th e estate tax return must be fi led
in a timely manner to be eff ective.
Form 706 is due nine months from
the date of death of the decedent. In
the event additional time is needed,
a six-month extension for fi ling can
be requested on or before the due
date of the return. Surviving spouses
of decedents who died recently
should consult with an estate planning
attorney to discuss their own
unique circumstances. Th e determination
of whether to fi le an estate tax
return to elect portability may be an
appropriate and necessary tax planning
tool in the context of a broader
estate plan for the surviving spouse.
Ronald A. Fatoullah, Esq. is the
principal of Ronald Fatoullah &
Associates, a law fi rm that concentrates
in elder law, estate planning,
Medicaid planning, guardianships,
estate administration, trusts,
wills, and real estate. Eva Schwechter
is an elder law attorney with the
fi rm. Th e law fi rm can be reached
at 718-261-1700, 516-466-4422, or
toll free at 1-877-ELDER-LAW or
1-877-ESTATES. Mr. Fatoullah is
also a partner with Advice Period,
a wealth management fi rm, and he
can be reached at 424-256-7273.
RONALD FATOULLAH
ESQ, CELA*
SHARING THE PAST AND AGING
Th ere can be much satisfaction in
sharing with an elderly person his
refl ections on the past. Directly or
indirectly, it is part of our history as
well. Apart from the facts we could
glean, it deepens our understanding
of life’s experiences. Together with
the old person, we feel the transformation
from child to youth to adult
and beyond.
In this way, an old person who
opens his mind and feelings to us
is a unique text on human development
and aging.
When we show interest in that
person’s past, we are being helpful
to him in several ways: 1) an
opportunity to air his experiences
making it easier for him to develop
a fresh perspective, and 2) the
process of discussing his past with
another person can help him to be
more objective, (i.e.) he can stand
back and take another look at the
experiences that have been so close
to him.
Some of the disappointment and
resentment that may have been
infl uencing his view of his past life
may be alleviated through the sharing
process. Th is can encourage not
only a more positive assessment
of the past, but also a more hopeful
attitude toward the present and
future. He may also fi nd it easier to
think positively about his achievements
if somebody else is at hand
to confi rm them, and by doing so,
honor them.
Th ere is no age restriction on
turning to the past for help to meet
challenges of the present and future.
Overuse of the past, shown by certain
old people, is related to their
reduced opportunity for sharing
experiences with others, as well as
reduced stimulation and opportunity
in the present environment.
Despite this concern with the past,
the future is of interest to many
elderly individuals just as the past is
to many of their juniors.
Research with adults indicate that
the most typical daydreams center
around practical tasks and challenges
and this is as true of the old as it
is of young and middle-aged people.
Th e old do not bury themselves in
the past or avert their eyes from the
future. Neither should we!
Quotable Quote: “Be more concerned
with your character than
your reputation, because your character
is what you really are, while
your reputation is merely what others
think you are.”
Dr. Sheldon Ornstein is a
registered professional nurse
with a doctoral degree in
nursing organization. He
has specialized in the care
of older adults and has
published many articles on
the subject. He has done
post-graduate work in gerontology
and has taught
at several universities. In
2013, he was inducted into
the Nursing Hall of Fame at
Teachers College, Columbia
University.