Form 706

[S T]

Only filing form 706 for portability to spouse, otherwise no need for filing

Question: Do I list or where do I list -

Life Insurance where the owner and insured are the surviving spouse, the primary beneficiary is the deceased husband, and the contingent beneficiary is the Trust

It seems on decedent's 706 form it would not be a Sched G - as it was not a transfer during Decedent's Life,

Seems this becomes a Trust Asset after surviving spouse passes away and then would be on the surviving spouse's form 706 if required.

Does this become a Trust Asset and has to be listed on the deceased husband's 706 form? I am thinking Not! Attorney has listed as a Trust Asset on the Inventory list due to the Contingency factor - so I am confused

Oh by the way -- the attorney is useless and claims -0- knowledge on how to report on Taxes, just charged the client $ 5K to process the deceased husband's portion and reset Trust for surviving spouse.. much like an A-B trust

Thanks

Sandy

[Burke]

If the deceased was only a beneficiary, and the owner AND insured were the spouse....then it would not go on his 706 at all. After all, she could still change the beneficiary to anyone she chooses in the future. It would go on her 706 when she dies.

[S T]

Thanks Burke for the confirmation, that is what I was thinking

However, the attorney had placed on the Trust Inventory list

Sandy

[Burke]

It does not become a Trust asset until the insured spouse dies, under the current bene arrangement. As I mentioned, she could change the primary bene to anyone she chooses, say perhaps a child. Then it would not become a trust asset at all. But it would go on her 706, regardless.

[S T]

Thanks Burke for the reply and clarification - that is what I was thinking, it is the surviving spouse's asset and has nothing to do with the deceased husband and/or that part of his share of the Trust.

Almost have this 706 Form completed for the DSUE-portability - what a PITA! Way under limits of reporting, however, the attorney insisted!

Sandy

[Burke]

He's doing his job, CYA. Anything could happen in the future. She could win the lottery or inherit lots of money. It's probably a good idea for anyone these days.