Estate Planning Flashcards

A surviving spouse wants to preserve the deceased spouse's unused exclusion (DSUE) amount. What is required?

Answer: A timely filed Form 706 making the portability election

Portability of the DSUE amount is elected only by filing a complete and timely Form 706 for the deceased spouse's estate.

Under Rev. Proc. 2022-32, how long after death may an estate not otherwise required to file Form 706 make a late portability election?

Answer: Up to 5 years

Rev. Proc. 2022-32 provides simplified relief to elect portability within 5 years of the decedent's death.

Which transfer to a U.S. citizen spouse qualifies for the unlimited marital deduction?

Answer: An outright bequest of a brokerage account

Outright transfers to a U.S. citizen spouse qualify, while terminable interests generally do not unless an exception like QTIP applies.

A decedent's spouse is not a U.S. citizen. Which vehicle allows the estate to claim the marital deduction?

Answer: Qualified Domestic Trust (QDOT)

Property passing to a noncitizen spouse generally qualifies for the marital deduction only through a QDOT.

What is the general due date for Form 706, the federal estate tax return?

Answer: 9 months after the date of death

Form 706 is due 9 months after death, with an automatic 6-month extension available to file.

An executor elects alternate valuation under IRC §2032. What date is used to value assets not sold or distributed?

Answer: 6 months after the date of death

Alternate valuation uses values 6 months after death and is allowed only if it reduces both gross estate value and estate tax.

Which condition must be met to elect alternate valuation under §2032?

Answer: It must decrease both the gross estate value and the estate tax liability

The election is only available when it reduces both the gross estate and the combined estate and GST tax.