New Estate Tax Form Now Due January 17, 2012

The IRS released the final version of Form 8939: Allocation of Increase in Basis for Property Acquired from a Decedent. This is the form necessary to elect out of estate taxes for decedents who died in 2010. The form was originally due November 15, 2011 but because of delays and ambiguities in the form it is now due January 17, 2012. The IRS released Notice 2011-76 setting the new deadline and giving some guidance on the form’s application.

Even though the thought of paying no estate taxes seems like a great idea, personal representatives and trustees need to meet with their attorneys and CPAs before making this election. The increase in basis of assets held by a decedent may not actually outweigh the benefit of paying no estate taxes. For more information on this form and its implications check out our previous article here.

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State Bar of California
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