Planning to maximize the s. 2013 credit.
Florida Bar Journal › Vol. 72 Nbr. 1, January 1998
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Summary
Tax on prior transfers
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Extract
Planning to maximize the s. 2013 credit.
Those of us who toil in the areas of estate planning and estate administration learned early on in our practice about the credit for tax on prior transfers (TPT credit) allowed by [Section]2013 of the Internal Revenue Code.(1) We encounter the credit on the checklists we review when preparing or reviewing a federal estate tax return, and we are mindful of the credit when advising (tactfully) the surviving spouse that we may wish to extend the filing of the federal estate tax return for the estate of the first spouse to die in the event that the surviving spouse may not survive the six-month extension period. However, as more articles appear by commentators extolling the benefits of paying tax in the estate of the first spouse to die,(2) increased attention is being focused on the credit, and deservedly so.
The purpose of this article is to raise the level of consciousness of the TPT credit by reviewing how it works and how practitioners can plan to maximize its potential benefit. An in-depth analysis of the TPT credit is beyond the scope of this article. Our intent is to discuss the credit in enough detail to hopefully spark in the reader/practitioner/planner some ideas for planning (not only in the "post-mortem" administration phase, but in the "pre-mortem" estate planning phase) to use the credit in its usual application. Over...See the full content of this document
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