Estate Planning Essentials: Fed & Mass Issues (706 & M706)

Join Todd in this exciting walk through of a Federal & Mass. estate.

The Tax Cuts and Jobs Act of 2018 introduced a variety of new planning opportunities. It is all about the basics. Massachusetts however continues to limit its exemption to $1,000,000.

In this program we will guide you through the proper preparation of Federal and State estate tax returns as well as any necessary gift tax returns including a discussion of the pros and cons of the portability election and how it works, the QTIP election for the state, and even the potential benefits of a Federal QTIP election coupled with gifting assets flush with basis by the surviving spouse to reduce the future Massachusetts estate tax. Finally, we will explore the recent Supreme Judicial Court decision in the Schaffer case showing how not making a federal

QTIP election, even without gifting by the surviving spouse, could lower the estate tax of the surviving spouse

Using a hypothetical example we will guide you through schedule by schedule the preparation of a Federal and Massachusetts estate tax return along with an explanation of the different estate planning techniques you may encounter when preparing these returns as well as whether they are included in the estate or not, such as revocable trust, irrevocable life insurance trusts (first and second to die variety), Medicaid income only trusts, Limited Liability Companies and much more with special attention paid to a Joint trust and application of Section 1014 (e) to the Trust and the possible double step-up in Basis through a combination of the federal QTIP election and portability. So sharpen your pencil and come to this hypothetical-packed session ready to “do the math.” 

1. Filing Release of Liens, General Information & Elections
2. Real Estate – Schedule A
3. Stocks, Bonds –  Schedule B
4. Mortgages, Notes, Cash – Schedule C
5. Life Insurance –  Schedule D
6. Joint Property – Schedule E
7. Other Miscellaneous Property – Schedule F
8. Lifetime Transfers – Schedule G
9. Deductions, Admin. Expenses & Debts & Losses – J,K,L
10. Bequests to Surviving Spouse – Schedule M
11. Charitable Deductions – Schedule O 
12. Generation Skipping Transfers – Schedule R
13. Credits for Taxes on Prior Transfers – Schedule P and G
14. Hypothetical Problem & Federal & State Computations in Detail
15. Questions and Answers