Estate Taxes
NY Estate Tax Return
$1M exemption state. An estate needs to have more than a $1M to be taxed
which estates must file
Estates over the yearly exemption; $5.120M/2012, $5.25M/2013
Form 706
Used to file estate taxes
apportionment of estate taxes
all beneficiaries pay a percentage of the estate taxes unless otherwise specified
step-up in basis
alt value locks the assets at the lower alternate values
alternate valuation
cannot arbitrarily select a date--use either date of death or alternate valuation date
estate taxes
cash, securities, real estate, insurance, trusts, annuities, business interests and other assets--gross estate--includes probate and non-probate items
estate taxes
consists of accounting of everything you own or have certain interests in at the date of death
alternate valuation
date used instead of date of death
simple estates
do not require an estate tax return
9 months
estate tax returns is due ___ after date of death.
6 months
extension is available on request to file estate taxes
date of death
fair market value on the decedent's actual date of death
Form 1041/K1
federal form used to file fiduciary income taxes
estates over $5M
file taxes in 2010 and 2011
estate taxes
file using form 706
alternate valuation
general rule; 6 months after/from the date of death to value
Taxable estate
gross estate - deductions
CUSIP
identifies all stocks and bonds
alternate valuation exception
if asset is sold / converted to cash, the sale date becomes the valuation date
estate taxes
is a tax on your right to transfer property at death
NY Estate Tax Return
may be required even if one is not filed with the IRS/Federal because of the $1M exemption
estate taxes deductions
mortgages, other debts, estate administration expenses, property that passes to surviving spouses and qualified charities
estates over $5.120M
must file taxes in 2012
estates over $5.25M
must file taxes in 2013
estate tax treatment for joint assets
rebuttable presumption: can assume a fact but can prove otherwise
alternate valuation
relief to pay lower taxes; tax law permits you to take a different date to lower taxes
estate tax treatment for joint assets
survivor can exclude asset in whole or in part; spouses usually get taxed on 50%, non-spouses get taxed on a determined %
fiduciary income taxes
taxes on income from trusts--paid by the beneficiary--taxes first paid by estate, once gifted, paid by beneficiary--taxes must flow through from trust to beneficiary
estate taxes
the current fair market value of these items is used, not necessarily what the decedent paid for them or what the value was
calculation of stock value for estate tax purposes
use value of the stock either from the date of death of or the alternate valuation date
