TIPS FOR FILING A FINAL 1040

[Lee B]

This is a link to an article in The Tax Advisor:

 

http://www.thetaxadviser.com/newsletters/2016/jan/taking-control-of-final-form-1040.html

[SaraEA]

All good info to think about.  Yet much of the article is geared toward lowering estate taxes, just like most financial press for the elderly and "advice" that comes from brokerage firms.  Has anyone on this board ever filed a 706?  I've done several in tax courses over the years, but I only did one real one and that for a state with a much lower threshold than the $5.9m federal threshold.  I have never, ever filed a federal 706.  Most people with that kind of assets have set up trusts, retitled assets, whatever they need to do to get their estate below the magic numbers.

The items about considering a fiscal year, playing with savings bond interest  (often fully wiped out by high medical expenses the decedent had before death), and scruitinizing statements for what occurred before and after death and whether step-up basis was applied, are solid.  The stuff about minimizing estate taxes sounds more like the presentations at the "free" dinners we are so often invited to attend (and that many of our clients unfortunately do attend and buy into).

[Randall]

I've not filed a 706 and probably won't have any clients like that.  The only circumstance I can think of filing a 706 myself would be the first of a couple to die and you just want to check the box for the carryover exemption.  Even if they don't have much money, just in case the surviving spouse came into some money later.

 

[michaelmars]

I file a few a year, first of all you have to consider State estate taxes.  And if the estate is even close, and contains any real estate I file anyway to run the statute.  Also an estate with a large portfolio, filing will establish the dod values.  Any estate over 3 mil gets a serious discussion with executor re: filing.  And most attorneys I deal with want the filing for the same reasons.