An estate tax return (generally IRS Form 706) must be filed if the gross estate
exceeds the "exemption equivalent" (applicable exclusion) provided by the estate tax unified credit ($2,000,000 in 2006 to 2008; $3,500,000 in 2009; and $1,000,000 in 2011 and thereafter: see the Estate Tax Unified Credit table in Appendix A).
(8ex) Where the decedent made a "net gift" (i.e., a gift made on the condition that the donee pay the gift tax), the amount includable in the gross estate
is the total value of the property transferred.
(1) If the death benefit is payable to annuitant's estate, its value is includable in his gross estate
, under IRC Section 2033, as a property interest owned by him at the time of his death.
In determining the adjusted gross estate
, we can subtract the decedent's debts, such as loans, notes, and mortgages, plus the debts of the estate, such as funeral and administrative expenses.
* Charitable Deduction: If the decedent leaves property to a qualifying charity, it is deductible from the gross estate
Moreover, if the grantor dies during the period of her retained interest, the fair market value at the date of her death will be included in her gross estate
The estate concluded that this cost should reduce the value of the IRAs in the gross estate
. To support its position, the estate cited the following situations where courts have allowed reductions in the value of assets in the gross estate
: cases allowing future tax detriments or benefits; cases allowing lack of marketability discounts; and cases allowing reductions in value for zoning or decontamination of real property.
If he holds the annuity until death, it will be included in the gross estate
and may ultimately be subject to estate taxes.
Figure 42.2 illustrates the means by which the adjusted value of Charles' gross estate
SCIN's are not included in the seller's gross estate
Generally, some or even all of the value of jointly owned property may be includable in the decedent's gross estate
for Federal estate tax purposes.
While the total value of all four parcels equaled approximately 68 percent of the adjusted gross estate
, the estate elected to apply the rule to only one of the parcels, which represented 15 percent of the adjusted gross estate
, because it was the only parcel that would continue to be operated as a farm.