7.3 Federal Estate Tax

1. Form 706: Estate Tax Return

Gross Estate
 - Deductions
= Taxable Estate
 + (Adjusted) Taxable Gifts
= Tentative Tax Base
 x Uniform Tax Rates
= Tentative Estate Tax
 - Gift Taxes paid
= Gross Estate Tax
 - Unified Tax Credit
= Net Estate Tax Due

2. Gross Estate

1) Alternate valuation date: 6 months after the date of death

2) Jointly-held property
(a) Spouse joint tenancy - split 50/50
(b) Other joint tenancy - 100% less other owner's contribution
(c) Tenancy in common - decedent's interest %

3) Life insurance proceeds

4) Revocable transfers (i.e., revocable trusts)

5) Income in respect of a decedent

3. Deductions

1) Administrative expenses: Form 706 or 1041

2) Medical Expenses: Form 706 or 1040

4. Deceased Spouse's Unused Unified Credit

5. Generation-Skipping Transfer Tax