Other Tax Issues of Interest
Estate Tax

Estate tax will apply to your taxable estate at your death. Yourtaxable estate is your gross estate less allowable deductions.

If you have not used any of your unified credit to eliminate gifttaxes, no estate tax will have to be paid unless your taxable estate is more than$650,000.

Gross Estate
Taxable Estate
Filing an Estate Tax Return

If you think that your taxable estate plus the total amount oftaxable gifts you give during your lifetime will be more than $625,000, you may want toconsider consulting a qualified estate tax professional. You may also want to get Form 706and its instructions.

Estate Tax Return Filing Requirement Increases

Generally, an estate tax return must be filed for the estate of aU.S. citizen or resident dying in 1998 if the gross estate is more than $625,000.Previously, this amount was $600,000. The following table lists the filing requirement forestates of decedents dying after 1998.

Filing Year of Death Requirement:
1999                        $ 650,000
2000 and 2001           675,000
2002 and 2003           700,000
2004                            850,000
2005                            950,000
After 2005                1,000,000

Important References

Publication 950                  Estate and Gift Taxes
Form706                             United States Estate (and Generation-Skipping Transfer) Tax Return
Instructions for Form 706