Estate Planning - Postmortem

Front 1

What are the requirements of a qualified disclaimer?

Back 1

1)must be an irrevocable and unqualified refusal to accept the interest; 2) the disclaimant must not have previously accepted any interest in the benefits from the property; 3) disclaimer must be in writing (to executor); 4) disclaimer must be received by estate within NINE months after date of xfer or 21st birthday.

Front 2

When is the use of a disclaimer most appropriate?

Back 2

1) disclaimant has large estate; 2) property not needed and disclaimer can reduce overqualification of survivor's estate; 3) property left to children exceeds the applicable exclusion amount

Front 3

What is the alternative valuation date election?

Back 3

An alternative valuation date for the decedents estate that must be no more than 6 months from the decedents date of death. It must be applied to all assets in gross estate and it must result in a reduction in the total value of the estate. AVD cannot be used for sells b4 AVD nor for wasting assets, e.g annuities, patents, installment notes.

Front 4

What is the partial QTIP election?

Back 4

Certain types of terminable interest may qualify for the marital deduction if the executor makes the QTIP election on IRS706. QTIP assets are added to the surviving spouse gross estate to the extent they are not consumed during the surviving spouses lifetime.

Front 5

What is the reverse QTIP election

Back 5

Under GSTT rule QTIP property included in the surviving spouse estate is treated as if it is transferred by the surviving spouse not the decedent. The last to die will not be able to therefore use the GSTT exemption. The reverse QTIP election available under GSTT rules treats the transfer as if it were made by the decedent instead of the surviving spouse. This permits the decedent to use the GSTT exemption.

Front 6

What is the homestead exemption

Back 6

protection provided by states to prevent surviving family members of the decedent from losing certain property because of claims of creditors.

Front 7

What is the family allowance--dower and curtesy?

Back 7

Money paid to family until probate process complete (wife=dower) and husband=curtesy

Front 8

What is section 6166 as a liquidity generating election?

Back 8

allows installment payment of estate taxes--deferral for 5 years

Front 9

What are two conditions where the AVD, alternative valuation date not be used?

Back 9

An estate cannot use the alternative valuation date when the estate tax base is less than the estate tax exemption equivalent ($5,120,000 in 2012) or when all assets pass to the surviving spouse and qualify for the marital deduction.

Front 10

What is a family settlement agreement?

Back 10

An agreement made by all family members of decedent's estate who separately consent to the division of a decedent's property in a specified manner. It is reached out of court, although the court must subsequently approve the provisions of the agreement before it can be legally effective.

Front 11

What is QTIP planning?

Back 11

The choice that confronts the executor as to whether to make the qualifying election in total, in part or at all.

Front 12

What is IRD

Back 12

Income in respect of a decedent is gross income to which the decedent was entitled at the date of death but had not yet received. . It is not eligible for a step up in basis. IRD is reported on decedent's 1040 if payable to decedent or beneficiary, or 1041 if it is payable to estate

Front 13

What are the responsibilities of fiduciaries

Back 13

locates and proves will, locates witnesses, receives letters testamentary from court, manage property, pay expenses of decedent

Front 14

How should accrued Series E and EE bonds of decedent be reported

Back 14

on decedent's final form 1040 by making the election. If not it results in IRD

Front 15

What are the cohabitants rights to decedent's property of if there is no will

Back 15

Intestacy laws never xfer assets to nonrelative, nonspouse.

Front 16

What is an election against the will

Back 16

SS may assert right to receive minimum bequest from estate. A premarital agreement can be used to affect this election as well as protect separate assets in the event of a divorce.

Front 17

If the alternative valuation date shows the values of the estate to be lower than date of death, when would it not be advantags to use the alternative valuation date

Back 17

when the bene wants to sell the assets.

Front 18

How are notes and accrued rentals treated in estate IRD in estate.

Back 18

Taxed to bene as ordinary income.

Front 19

What iare the assumptions about death in the Uniform simultaneous Death Act

Back 19

If insured and beneficiary die simultaneously, act assumes insured survived beneficiary

Front 20

What is the main benefit of estate planning

Back 20

To insure property passes to intended persons