What is Portability for Estate and Gift Tax?

In July 2022, the IRS issued a revenue procedure (Rev. Proc. 2022-32), which extended the filing of estate tax returns to elect portability to five years from the date of death of the decedent. What is portability and how does it affect the estate and gift tax exemption? Federal gift and estate taxes have implications at death and the surviving spouse has options for handling the estate, one of which is using portability. Trust and estate experts explain portability of the estate and gift tax exemption and what to consider if electing to use it.