The months after losing a spouse can be stressful. In addition to managing grief, the loss of a partner often comes with significant paperwork and bureaucracy.

That something may slip through the cracks isn't surprising. If it relates to estate taxes, however, it can potentially have serious financial implications.

What is the Spousal Election Deadline?

The spousal election deadline is an important component of federal taxes. This filing allows a surviving spouse to claim the deceased spouse's unused exemption and combine both of their lifetime state and gift tax exemptions. For some taxpayers, this can result in saving six figures or more from being taxed. As of 2026, to meet the spousal election deadline, an estate's representative must file an estate tax return (Form 706) within nine months of the late spouse's death.

This can potentially be expanded up to fifteen months. The estate's representative may request an extension of up to six months. All estates have an automatic six-month extension if the estate's representative files Form 4768 on or before the date of the filing deadline.

Essentially, if someone falls under the threshold, the estate avoids being taxed. Beginning in 2026, the base exclusion was $15 million. This means that an estate worth up to $30 million can potentially avoid paying estate taxes.  One note is that any property owned solely by the deceased spouse or in which the deceased spouse had a lifetime estate doesn't fall into the estate.

The catch with estate tax portability is that it isn't automatic. If a surviving spouse or the estate representative fails to file, they lose the spouse's exemption.

Whether an estate has a filing requirement depends on the filing threshold listed in the Internal Revenue Code. A tax accountant can help the estate's representative or surviving spouse determine if they have a filing requirement and whether and when they need to file.

Get Help From an Experienced IRS Tax Attorney

If you have questions related to estate tax issues or estate tax portability, call Senior Partner, Tax Controversy Attorney, and former IRS attorney Brandon A. Keim at (602) 200-7399 or contact him online to discuss your options.