A revised and updated review of the basics in preparing a federal estate tax return (Form 706), and making the portability election for the estate of the deceased spouse.
Master the portability of the deceased spousal unused exclusion amount, which is a fast-growing compliance opportunity for clients. Review how the portability election can provide significant estate tax insurance for the surviving spouse and income tax insurance for beneficiaries. Also, study the completion of each of the schedules and make available elections. Further, discuss requirements arising from the most recent changes in federal estate tax law, and the latest edition of Form 706. We’ll also review the new income tax basis consistency reporting rules with the preparation of Form 706.
Additional content will be leveraged to increase basic understanding. Federal estate tax returns remain the most difficult and trap-strewn of all returns required for the estate. This course will prepare beginning practitioners to identify problems and traps before they arise, and recommend steps to protect a practice. Two sample estate tax returns are discussed in a schedule-by-schedule format.
Note: A companion course, Advanced Issues: The Art of the Estate Tax Return, presents in-depth discussion of issues, tax-saving strategies and planning alternatives with Form 706 using the instructor’s book,Art of the Estate Tax Return (2nd ed.), Bloomberg BNA Books.
Determine how to prepare each schedule to the estate tax return (Form 706).
Identify how to present returns to minimize audit risks.
Learn the filing and due date requirements– often the source of liability claims against accountants.
Recognize protective and perfected refund claims with estate tax.
Determine portability elections to benefit from the deceased spousal unused exclusion amount (DSUEA).
Identify and discuss rules to deduct expenses and liabilities, including protective refund claims (and Schedule PC) and extra demands, as well as calendaring needed for your office.
Filing requirements, new forms and IRS return review procedures
Estate tax return terminology
Action steps upon receipt of the engagement to prepare Form 706
Introduction to each schedule and page on the return
When to use or eschew simplified reporting while making DSUEA elections
Recent developments with basis consistency rules and integration with the Form 706
QTIP elections with otherwise bypass/credit-shelter trusts
Practice forms to attach to the estate tax return
Marital deduction elections
Practice tips for penalty avoidance
Reporting elections: Sec. 6166, QTIP, reverse QTIP, QDOT, alternate value and Sec. 2032A
Attorneys, CPAs and tax practitioners.
Basic understanding of trusts and estate planning terminology.