Los Angeles Tax Attorney Bruce Givner Discusses IRS Form 706 – “Who Must File?”

by Bruce Givner on July 9, 2012

IRS Form 706 - United States Estate (and Generation-Skipping Transfer) Tax Return calculates any estate tax due after a decedent has died. IRS Form 706 is also used to calculate the generation-skipping transfer (GST) tax imposed on direct skips (transfers to skip persons of interests in property included in the decedent's gross estate).
For the estate of any U.S. citizen or resident, IRS Form 706 must be filed:

1. If the decedent’s gross estate, plus adjusted taxable gifts and specific exemption, is more than $5 million ($5,120,000, as adjusted for inflation, in 2012); or

2. Regardless of the size of the decedent’s gross estate, the estate’s executors elect to allow the decedent's surviving spouse to use the decedent's unused exclusion amount.

The decedent’s gross estate will include all the personal property within the U.S. and any real property within or outside the U.S. in which the decedent had an interest. The decedent’s gross estate will also include:

  • Certain transfers made during the decedent's life without an adequate and full consideration in money or money's worth,
  • Annuities,
  • The includible portion of joint estates with right of survivorship,
  •  The includible portion of tenancies by the entirety,
  • Certain life insurance proceeds (even though payable to beneficiaries other than the estate) ,
  • Property over which the decedent possessed a general power of appointment,
  • Dower or curtesy (or statutory estate) of the surviving spouse, and
  • Community property to the extent of the decedent's interest as defined by applicable law.

If you are considering gifting as part of your estate planning, meet with a qualified tax and estate planning attorney. Givner & Kaye focuses on sophisticated income tax planning, asset protection plans, and estate planning for individuals and businesses in Beverly Hills, Calabasas, West Los Angeles, Hollywood, and other areas of Los Angeles County. On the first and third Thursday of every month, Givner & Kaye hosts its MCLE & CE accredited series - "Thursday Insights." Call Los Angeles Tax Attorneys Givner & Kaye at (310) 207-8008 today.

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