Discussion:QUALIFIED RETIREMENT AND ESTATE TAX FORM 706
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Discussion Forum Index --> Advanced Tax Questions --> QUALIFIED RETIREMENT AND ESTATE TAX FORM 706
Discussion Forum Index --> Tax Questions --> QUALIFIED RETIREMENT AND ESTATE TAX FORM 706
| 21 October 2009 | |
| Hi this is Listo, and I am preparing a Estate Tax for a person that passed away on May 2008. En that month the assets are around 5M. Six months later 4M. The decedent Had a Qualified retirement plan that automatically passed to his surviving wife. The present value of this retirement needs be included in the Estate?
If that is the case, what tables I need use to calculate the present value? because in the tables of section 7520, table K etc. there are notes telling (Not applicable to calculate qualified annuities). I called to the IRS, in 15 work days they will tell me if I will include or not the retirement and what tables to use to calculate the present value. My client (the survivor) doesn't want to wait and prefer to send right now the Estate Tax. Some one can help me? | |
| 22 October 2009 | |
| Most retirement plans are not in annuity form and the firm that held the investment should be able to provide the exact account value for both your dates. Yes that value is part of the estate. If the surviving wife then took the account in the form of an annuity that would be a separate transaction. | |
| 22 October 2009 | |
| I believe that Tiger Tables (www.tigertables.com) has software that will perform this calculation. Also, I have a spreadsheet that will take you through this calculation. If you want it, send me an email (dfogel@surewest.net). | |
| 22 October 2009 | |
| Odd. The phrasing of the question and what we know of the fact pattern strongly suggest that there is no tax due here and alternative valuation not an option. | |
| 23 October 2009 | |
| This is Listo again.
Thank you to every one for help me. It is the first time I am preparing the Estate Tax. The total assets of my client is around 5M. The most in Stocks and Mutual funds. The decedent had a good Tax planing and the surviving wife inherited everything. All investment were keep in Joint accounts. The last will is very clear as the Revocable Living Trust too. The decedent was an executive of American Express and retired around 1988. From this date until die he received the monthly payment for this retirement. All kind of qualified retirement has a lot of conditions and legal issues to be "qualified retirement plans". One of the features of this particular plan is to be inherited automatically for the wife until die. The questions are: This qualified retirement needs be included in the Estate Tax? If the answer is positive? In What Schedule? What Tables I need to use to calculate the present value of this retirement? I read carefully all the form 706 and the instructions, all the regulations I could find in the IRS Web-page, I visited 3 different forums, I talked 5 times with officers of the IRS and I am not satisfied yet with the answers. why? because a mistake can cost thousands to my client. I found few "WORDS" about QUALIFIED RETIREMENT PLANS. I am learning a lot about Estate Tax, is complicated, but is not impossible to understand and fill out the form. I was a CPA in my country (PERU), here I am only Tax Preparer. I accepted the challenge to do the job after my client looked for months with lawyers and accountants. My client was not satisfied with the requirement of information and level of fees. I prepared Income Tax the last 3 years for this client and at least I know where to find the information of the assets. My weak side is the legislation and I am learning a lot. If you can help me. The way to help is to give an opinion and support it with the IRS code or the regulation that can I verify. When I help to any one who needs it, I do in same way. Thank you, Listo | |
| 24 October 2009 | |
| Schedule I. Table S.
Don't forget to zero out the tax liability (hint: Schedule M). | |
