Trusts and Estates

Ca. Trs. & Estates Quarterly Volume 10, Issue 4, Winter 2004

ODE TO THE ESTATE TAX RETURN…A POETIC APPROACH TO FORM 706, AUDITS AND ESTATE PLANNING

By Keith Schiller*

While estate tax returns remain with us, it is altogether fitting and timely to integrate pragmatic practice pointers in a poetic setting. So I take this unique, and hopefully joyful approach, to reminders for effective estate planning with each pointer set-off in rhyme.

I. WHEN A QTIP TRUST IS PART OF THE PLAY, EXTEND THE TIME TO FILE AND PAY

Generally, it is preferable to pay no estate tax on the death of the first spouse. Taxes are often best deferred, and with the potential repeal of the estate tax, the eventual tax on the death of the surviving spouse may never arise. Furthermore, estate taxes are the "kids’ problem" because the tax can be deferred until the death of the surviving spouse.

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