In almost all situations where there
is a surviving spouse, advisors should have their estate clients file a timely
and complete Federal Estate Tax Return (Form 706), even when it is not otherwise
due. The reason? To make the “Portability Election,” which can only be made by
filing such a return. This Election, which allows a surviving spouse’s estate to
use the unused exemption of the first spouse’s estate, can potentially save
large amounts of Federal estate tax. It is available for all 2011 and 2012
estates. In fact, the Portability Election is so important, on February 18,
2012, the IRS issued Notice 2012-12 which extends the time for some 2011 estates
to file a complete 706 in order to make the Election.
In this 3-hour March 7, 2012 presentation, Steven G. Siegel, a
nationally-recognized tax and estate planning expert, and also author of
The Siegel Post, which is located at
www.NLFforms.com, author and lecturer,
explains the Portability Election, why is it so significant, the relevant IRS
pronouncements including Notice 2012-12, and what to do to protect yourself from
malpractice claims if your client does not agree to file a Form 706. He then
provides a schedule-by-schedule explanation of how to complete a Form 706, using
a fully completed Federal Estate Tax Return as an example.
Major topics include:
ü Portability Election: Must File A
Timely And Complete 706 To Make It
ü Overview Of The 706
ü Early Preliminary Decisions
ü Filling Out Asset Schedules A Through
I
ü Use Of The Alternate Valuation Date
ü Completing Deduction Schedules J
Through U
ü Completing Pages 1 Through 3, Filing
The Return And Paying The Tax
FORMS: To purchase Mr. Siegel’s fully-editable downloadable clauses dealing
with the Portability Election, go to www.NLFforms.com
and click on “Estate Planning”. Under that heading, “2012 And Beyond Drafting
Issues - 16 Will And Trust Clauses To Address 4 Important Issues” includes 4
sample Portability Election Clauses in addition to 12 other clauses dealing with
three other issues. Or you can go to “Portability Election For Estates And
Trusts - 4 Alternative Clauses”.
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