CPE: 8 hours
Prerequisites: Basic understanding of trusts and estate planning terminology.
Advanced prep: None
Who should attend: Attorneys, CPAs and tax practitioners who wish to understand the basics of preparing Form 706 returns.
Review the basics of how to prepare a federal estate tax return (Form 706) and make the portability election for the estate of the deceased spouse in this course, which has been revised to focus solely on beginning estate tax return preparation. With special rules to calculate the gross and net estate, Form 706 is the most significant return most taxpayers will file. We'll dive into the portability of the deceased spousal unused exclusion amount, which is the fast-growing compliance opportunity for your clients. Moreover, the portability election can provide significant estate tax insurance for the surviving spouse and income tax insurance for beneficiaries. Gain a basic understanding of how to complete each of the schedules, make available elections, discuss the changes arising from the 2012 Tax Act and review the most recent edition of Form 706.
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 second edition of the instructor's book, Art of the Estate Tax Return, published by 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.
- Recognize protective and perfected refund claims with estate tax.
- Determine portability elections to benefit from the deceased spousal unused exclusion amount (DSUEA).
- Identfy and discuss rules to deduct expenses and liabilities, including protective refund claims (and Schedule PC) and extra demands, and calendaring needed for your office.
- Updated filing requirements, new forms and IRS return review procedures
- Basic estate tax return terminology
- Action steps upon receipt of the engagement to prepare Form 706
- When to use or eschew simplified reporting while making DSUEA elections
- 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