G.62 Postmortem estate planning techniques

Question 1

The process of managing and optimizing a deceased person’s estate to reduce taxes, settle debts, and distribute assets efficiently.

Answer 1

Postmortem Estate Planning

Question 2

A legal refusal to accept an inheritance or gift, allowing assets to pass to contingent beneficiaries and potentially reducing estate taxes.

Answer 2

Qualified Disclaimer

Question 3

A provision allowing closely held business owners to have stock redeemed by the company to pay estate taxes without significant tax consequences.

Answer 3

Section 303 Stock Redemption

Question 4

A tax provision that allows estates with significant closely held business interests to defer federal estate taxes and pay them in installments.

Answer 4

Section 6166 Election

Question 5

A tax election that allows an estate to use the fair market value of assets six months after the date of death instead of the date of death value, potentially reducing estate taxes.

Answer 5

Alternate Valuation Date

Question 6

A deduction for estate tax paid on income in respect of a decedent (IRD), preventing double taxation of certain income items.

Answer 6

IRC Section 691(c) Deduction

Question 7

A surviving spouse’s ability to roll over a deceased spouse’s IRA into their own, deferring required minimum distributions (RMDs) until their own retirement.

Answer 7

Spousal Rollover (IRA)

Question 8

The federal tax form used to calculate and report estate tax liability for estates exceeding the exemption threshold.

Answer 8

Form 706 (Estate Tax Return)

Question 9

A provision allowing a surviving spouse to use a deceased spouse’s unused federal estate tax exemption, maximizing estate tax savings.

Answer 9

Portability Election