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As a trusted advisor, one’s CPA is often one of the first people notified when a client dies.  As a CPA, it is critical to know and understand both the legal and moral steps involved in helping a family cope with a death.

By Barb Theofilos, CPA

Ohio S.B. 117 signed by Governor Kasich will take effect in March 2012.  One of the  more interesting changes made by this bill is in regards to trustee duties with respect to life insurance as a trust asset. 

The annual exclusion gift amount will be $13,000 (there is no inflation adjustment for the 2012 amount).

With just days left before the Sept 19, 2011 filing deadline for 2010 Federal Estate returns, the IRS posted the final Form 706 and Instructions on their website on 9/8/2011.

2010 Individuals, estate or trusts, who inherited property and sold it during 2010 have to file their returns by October 15, 2011. 

The previously issued proposed regulations issued in July 2007 regarding trust investment advice costs have been withdrawn and new proposed regulations have been issued. 

As of now, the deadline for filing 2010 Form 706 is September 17, 2011.  The due date for filing Form 8939, as mentioned above, is November 15, 2011. Both the 706 and 8939 have only been issued in draft form. 

The Internal Revenue Service issued guidance on the treatment of basis for certain estates of decedents who died in 2010  (See Notice 2011- 66   and Rev. Proc. 2011- 41)  The guidance assists executors who are making the choice to opt out of the estate tax and have the carryover basis rules apply. 

The draft Form 706 was posted to the IRS website. For your convenience, here is a direct link to the form http://www.irs.gov/pub/irs-dft/f706--dft.pdf.  It will only be used for decedents dying in 2010.  If electing the modified carryover basis and zero estate tax, the instructions to the form still don’t explain how to make the election.