Estate and Gift Tax Returns

The IRS rules for the imposition of Estate Taxes on the net worth of an individual on death and Gift Taxes on the transfer of funds during an individual’s life are complex.

The attorneys at Loveland & Hurley, PLLC understand and work with these laws regularly to provide guidance on when Estate Tax Returns and Gift Tax Returns are due, and we prepare these returns for clients.

An Estate Tax Return (Form 706) is due on an individual’s death if that individual’s net worth (as determined by IRS law and regulations) is above a certain “credit amount”. Preparing a Form 709 is technical and requires significant disclosure regarding the value of assets that an individual owned during that individual’s life.

Sometimes, it is even beneficial to prepare an Estate Tax Return if no tax is due on the death a first spouse to die, if a surviving spouse may have an Estate Tax issue in the future. This type of Estate Tax Return is called a “Portability” return, as it allows the surviving spouse to “port” or borrow, an estate tax credit amount which was unused by the first spouse to die and add that unused estate tax credit to the credit of the surviving spouse.

A Gift Tax Return (Form 709) is required to be filed for gifts made by an individual to others which exceed the Annual Gift Tax Exemption in place for that year.  The preparation of Estate Tax Returns and Gift Tax Returns requires a careful attention to detail and understanding of IRS laws and regulations. The attorneys at Loveland & Hurley, PLLC are trained and prepared to help in the filing of Estate Tax Returns, Gift Tax Returns, and all related IRS filings.