IRS Released 2013 Draft Form 706

The IRS posted an an early release draft of Form 706 (posted on October 23, 2013). The IRS provides this information as a courtesy. To download the Draft Form 706, click here.

Thanks to ATRA and the “permanent” $5+ million tax estate tax exemption, some people feel that fewer estates will be required to file a Form 706. But they’re wrong!

Lots of estates that don’t exceed $5.25 million may want to file a 706 because of another 2010 Tax Act provision… “Portability”!

Married couples may now fully utilize the first to die’s Estate Tax Exemption without bothering to set up “A” and “B” (or “credit shelter”) Trusts, provided the survivor elects portability – – on a timely filed 706.

This makes sense when the total estate is worth over $5.25 million at the first spouse’s death. And this could also make sense if the total estate is less than $5.25 million but may grow to over $5.25 million by the surviving spouse’s death, or there are concerns that future laws may reduce the exemption amount available to the survivor’s estate.

Plus, keep this in mind…many times, even when “A” and “B” trusts are set up, the first to die’s exemption may not be fully used because assets like IRAs pass directly to the survivor – – and that unused exemption will be lost forever if you don’t timely file the 706!

What all this means is that many estates, even those well below $5.25 million may now need a 706 done, which is a golden opportunity for you, if you know how to properly prepare the new 2013 Form 706 just released by the IRS!

Join us and nationally renowned CPA and tax authority, Robert S. Keebler, CPA, MST, AEP, on Wednesday, November 13, 2013 at 9am Pacific (12pm Eastern), for a 90-minute teleconference entitled “The Traps of the New Form 706 and Portability”.

For more information or to register, click here.

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