Estate Tax Return For DSUE Election By Cooley & Martin

Under the DSUE election, the estate of a surviving spouse can benefit from the unused portion of the decedent’s exemption by increasing their exemption. This maximizes the benefits for families that otherwise may have to contend with a top estate tax rate of 40%.

Form 706 is a Federal Estate Tax Return that is filed when the value of a decedent’s estate is more than the allowable exemption. When a married individual passes, the living spouse can file Form 706 to claim the unused exemption amount to be applied to their estate.

At Cooley & Martin, we claim the unused estate exemption from a departed spouse for our clients. The living spouse can apply the unused exemption to their estate when they eventually pass. Additionally, the living spouse can potentially double their estate tax exemption by filing Form 706 when their spouse passes.

Form 706 is a technically comprehensive tax return that should be prepared and filed by a professional. DIY attempts can lead to issues with the IRS and cause complications in the process.

Regarding the cost of these services, they depend on the complexity of the estate. This would include all the gifts paid, assets owned, and liabilities incurred by the decedent. If the combined estate of a married couple is well below the estate exemption threshold, it may not be necessary to file Form 706, but keep in mind Congress can always amend the tax code, including lowering the estate exemption.

It is wise to remember that no matter the costs, a professional can ensure you avail of all the benefits you deserve. So, please don’t hesitate to reach out to our firm with questions or planning issues that arise with estate filings.

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