Computation of Estate Tax

Estate Taxation at your death on "gross estate" valued at the fair market value at time of death

"Gross estate" includes everything you own or have certain interests in at the date of death, such as 
    • cash
    • securities
    • real estate
    • insurance
    • trusts
    • annuities
    • business interests and other assets

"Taxable Estate" computed after certain
deduction taken, such as 
    • mortgages and other debts
    • estate administration expenses
    • property that passes to surviving spouses and qualified charities

Computation of Tax
  • Add lifetime taxable gifts
  • Reduce tax by available unified credit which reduces the computed tax
  • For deaths in 2009, total taxable estates and lifetime gifts that exceed $3,500,000 pay tax

Pay Tax with Form 706, include
  • check
  • death certificateof the decedent's will and/or relevant trusts
  • appraisals
  • documentation of any unusual items shown on the return, such as 
  • partially included assets
  • losses, near date of death transfers