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Taxmap/pubs/p950-002.htm#TXMP5c0c5ac2 Estate Tax

Estate Tax

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

Taxmap/pubs/p950-002.htm#TXMP1c077b14 Gross Estate

Gross Estate

Your gross estate includes the value of all property in which you had an interest at the time of death. Your gross estate also will include the following:

• Life insurance proceeds payable to your estate or, if you owned the policy, to your heirs;
• The value of certain annuities payable to your estate or your heirs; and
• The value of certain property you transferred within 3 years before your death.

Taxmap/pubs/p950-002.htm#TXMP7bc6baae Taxable Estate

Estate

The allowable deductions used in determining your taxable estate include:

• Funeral expenses paid out of your estate,
• Debts you owed at the time of death, and
• The marital deduction (generally, the value of the property that passes from your estate to your surviving spouse).

Taxmap/pubs/p950-002.htm#TXMP556b1d9c More information.

For more information on what is included in your gross estate and the allowable deductions, see Form 706 and its instructions.

Taxmap/pubs/p950-002.htm#TXMP608fe2b4 Applying the Unified Credit to Estate Tax

Basically, any unified credit not used to eliminate gift tax can be used to eliminate or reduce estate tax. However, to determine the unified credit used against the estate tax, you must complete Form 706.

Taxmap/pubs/p950-002.htm#TXMP13102513 Filing an Estate Tax Return

Estate Tax Return

An estate tax return, Form 706, must be filed if the gross estate, plus any adjusted taxable gifts and specific gift tax exemption, is more than the filing requirement for the year of death.

Adjusted taxable gifts is the total of the taxable gifts you made after 1976 that are not included in your gross estate. The specific gift tax exemption applies only to gifts made after September 8, 1976, and before 1977.

Taxmap/pubs/p950-002.htm#TXMP5d9f8df1 Filing requirement.

The following table lists the filing requirement for the estate of a decedent dying after 2003.

Year of Death:	Filing  Requirement:
2004 and 2005		1,500,000
2006, 2007, and 2008		2,000,000
2009		3,500,000

Taxmap/pubs/p950-002.htm#TXMP672bd01a More information.

If you think you will have an estate on which tax must be paid, or if your estate will have to file an estate tax return even if no tax will be due, see Form 706 and its instructions for more information. You (or your estate) may want to get a qualified estate tax professional to help with estate tax questions.

Previous Page:  Publication 950 - Introduction to Estate and Gift Taxes - Gift Tax Next Page:  Publication 954 - Tax Incentives for Empowerment Zones and Other Distressed Communities - Tax Incentives for Distressed Communities Use     to find additional instances of index items.