Other Tax Issues of Interest

Estate Tax

Estate tax will apply to your taxable estate at your death. Your taxable estate is your gross estate less allowable deductions.

If you have not used any of your unified credit to eliminate gift taxes, no estate tax will have to be paid unless your taxable estate is more than $675,000.

Gross Estate
Taxable Estate
Filing an Estate Tax Return

If you think that your taxable estate plus the total amount of taxable gifts you give during your lifetime will be more than $675,000, you may want to consider consulting a qualified estate tax professional. You may also want to get Form 706 and its instructions.

Estate Tax Return Filing Requirement Increases

Generally, an estate tax return must be filed for the estate of a U.S. citizen or resident dying in 1999 if the gross estate is more than $650,000. The following table lists the filing requirement for estates of descendants dying after 1999.

Filing Year of Death Requirement:
2000 and 2001             675,000
2002 and 2003             700,000
2004                              850,000
2005                              950,000
After 2005                  1,000,000

Important References

Publication 950                     Estate and Gift Taxes
Form 706                               United States Estate (and Generation-Skipping Transfer) Tax Return
Instructions for Form 706