Steve Akers, Associate Fiduciary Counsel, Bessemer Trusts, provides the following summary of developments in estate planning over the last several months.
Steve R. Akers, Fiduciary Counsel
Akers@bessemer.com
August 17, 2011
The IRS issued Notice 2011-66 and Revenue Procedure 2011-41 on August 5, 2011. A summary on the IRS website provides that "[t]he IRS expects to issue Form 8939 and the related instructions early this fall." Notice 2011-66 generally provides the procedures for electing into carryover basis and for making GST exemption allocations and electing out of automatic allocation. Revenue Procedure 2011-41 generally provides guidance regarding the meaning of terms in Section 1022 and how the carryover basis provisions apply.
A few of the highlights from Notice 2011-66 and Rev. Proc. 2011-41 include:
Posted by Brian Spring, Associate Editor, Wealth Strategies Journal.
Steve R. Akers, Fiduciary Counsel
Akers@bessemer.com
August 17, 2011
The IRS issued Notice 2011-66 and Revenue Procedure 2011-41 on August 5, 2011. A summary on the IRS website provides that "[t]he IRS expects to issue Form 8939 and the related instructions early this fall." Notice 2011-66 generally provides the procedures for electing into carryover basis and for making GST exemption allocations and electing out of automatic allocation. Revenue Procedure 2011-41 generally provides guidance regarding the meaning of terms in Section 1022 and how the carryover basis provisions apply.
A few of the highlights from Notice 2011-66 and Rev. Proc. 2011-41 include:
- The Form 8939 is due November 15, 2011. Indeed, the IRS will not even accept Form 8939s filed after that date (except in several very limited circumstances). No extensions will be granted.
- The election is irrevocable.
- No protective elections are allowed.
- In many ways, the November 15th date is a "drop dead" date. Assembling all of the information to determine the carryover basis and fair market values of all estate assets and finalizing the very difficult decisions of whether to make the Section 1022 Election, and how to make Basis Increase allocations among estate assets must be completed by that date.
- If there is a court appointed executor, only that executor can file a Form 8939.
- GST exemption allocations for transfers at death by estates filing Form 8939 will be made on Schedule R to the Form 8939.
- The due dates of GST returns for testamentary transfers and gifts made in 2010 are detailed.
- Late, amended, or supplemental Form 8939s are allowed under several very limited exceptions.
Posted by Brian Spring, Associate Editor, Wealth Strategies Journal.
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