Monthly Archives: August 2011

New IRS guidelines issued August 5, 2011 on treatment of basis for certain estates of decedents who died in 2010.

2010 Form 8939 is Due Nov. 15; Reporting Option Applies to Many Large Estates

 
IR-2011-83, Aug. 5, 2011WASHINGTON — The Internal Revenue Service issued guidance today on the treatment of basis for certain estates of decedents who died in 2010. The guidance assists executors who are making the choice to opt out of the estate tax and have the carryover basis rules apply. Form 8939, the basis allocation form required to be filed by executors opting out of the estate tax, is due Nov. 15, 2011.Under the guidance issued today, an executor must file Form 8939, Allocation of Increase in Basis for Property Acquired from a Decedent, to opt out of the estate tax and have the new carryover basis rules apply. The IRS expects to issue Form 8939 and the related instructions early this fall.Under the Economic Growth and Tax Relief Reconciliation Act of 2001, the estate tax was repealed for persons who died in 2010. However, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 reinstated the estate tax for persons who died in 2010. This recent law allows executors of the estates of decedents who died in 2010 to opt out of the estate tax, and instead elect to be governed by the repealed carry-over basis provisions of the 2001 Act. This choice is to be made by filing Form 8939.For more information on this, see IRS Rev. Proc. 2011-41 and IRS Notice 2011-66.

Index of past posts:

A durable general power of attorney is an essential component of an estate plan, complimenting a living trust. August 5, 2011

Avoiding probate delays and avoiding conservatorship delays becoming more important due to budget cutbacks. August 5, 2011

New, portability of unused estate tax exemption for married couples offers simple “2 for 1” plans. July 16, 2011

Property tax increase looms as a big concern for many California inheritance and gift plans, June 10, 2011

Randal Dutra lecture on October 8, 2011 June 7, 2011

How to keep away the in-law from your child’s inheritance. How to preserve the separate property character of an inheritance. May 29, 2011

How much can trustees be paid? What is reasonable trustee compensation? May 18, 2011

Medi-Cal Payment of Long Term Care in California May 13, 2011

Ingredients for trust planning May 10, 2011

Will there be estate tax due when I die? May 10, 2011

Avoid Conservatorship of Your Person: Protect Your Health Care Decision With An Advance Health Care Directive April 15, 21011

Avoid Losses and Protect Yourself from Lawsuits: Review All Your Insurance Coverage Annually April 8, 2011

Who would raise your minor child? Selecting a guardian of your minor child’s person. April 2, 2011

New, extended deadline for increase in basis for property acquired from a person who died in 2010 April 1, 2011

Top 10: Do You Need to Update Your Trust or Will? March 25, 2011

How to Choose a Nursing Home March 18, 2011

NEW Estate Tax, Gift Tax, and Generation Skipping Transfer Tax Laws March 18, 2011

Selecting A Trustee for Your Living Trust March 18, 2011

President Obama’s February 2011 Assumption for 2013 estate tax exemption March 18, 2011

Avoiding probate delays and avoiding conservatorship delays becoming more important due to budget cutbacks

The delays inherent in all California probates and conservatorships may soon become much worse due to projected cutbacks in court funding.

Historically, the first available probate court hearing date is four to six weeks in the future. According to what court personnel are saying now, that four to six week “wait” may become much worse as upcoming budget cuts hit the California courts.

The importance of avoiding these court delays in probate and conservatorships is one of many reasons why it is so important (a) to prepare (or update) a living trust, durable general power of attorney, advance health care directive, pour over will, and whatever other estate planning documents are proper for your situation and (b) to title your assets properly and (c) to have proper beneficiary designations on those of your assets distributed on death by beneficiary forms (such as IRAs, 401(k), life insurance, annuities, etc).

copyright James J. Phillips 2011

Index of past posts:

New, portability of unused estate tax exemption for married couples offers simple “2 for 1” plans. July 16, 2011

Property tax increase looms as a big concern for many California inheritance and gift plans, June 10, 2011

Randal Dutra lecture on October 8, 2011 June 7, 2011

How to keep away the in-law from your child’s inheritance. How to preserve the separate property character of an inheritance. May 29, 2011

How much can trustees be paid? What is reasonable trustee compensation? May 18, 2011

Medi-Cal Payment of Long Term Care in California May 13, 2011

Ingredients for trust planning May 10, 2011

Will there be estate tax due when I die? May 10, 2011

Avoid Conservatorship of Your Person: Protect Your Health Care Decision With An Advance Health Care Directive April 15, 21011

Avoid Losses and Protect Yourself from Lawsuits: Review All Your Insurance Coverage Annually April 8, 2011

Who would raise your minor child? Selecting a guardian of your minor child’s person. April 2, 2011

New, extended deadline for increase in basis for property acquired from a person who died in 2010 April 1, 2011

Top 10: Do You Need to Update Your Trust or Will? March 25, 2011

How to Choose a Nursing Home March 18, 2011

NEW Estate Tax, Gift Tax, and Generation Skipping Transfer Tax Laws March 18, 2011

Selecting A Trustee for Your Living Trust March 18, 2011

President Obama’s February 2011 Assumption for 2013 estate tax exemption March 18, 2011