Property Titling Ownership, Probate, and Wills

Question 2

AVD Exceptions

Answer 2

Depreciating assets whose value declines over time do NOT qualify for this treatment and must be valued using FMV on date of death. ex:
-cars,
-patents,
-life estates, or
-remainder interests.

Question 3

Steps in the estate tax process

Answer 3

1. Determine the value of the gross estate
2. Subtract deductions to get to adjusted gross estate
3. After charitable bequests and the marital deduction, arrive at taxable estate
4. Add gifts and multiply by tax rate to arrive at tentative estate tax
5. Subtract applicable credit and other credits to arrive at estate tax liability

Question 4

Federal estate tax

Answer 4

tax on the transfer of property when a person dies

Question 5

Federal estate tax form

Answer 5

706 due 9 months after decendent’s death