Estate Tax Planning PA

Estate Tax Planning examines the various aspects of planning for the estate tax liability.  The course begins with a discussion of the genesis of estate taxation in English common law and continues with an examination of the estate and its administration.  The subjects included in the course include the following:

  1. The Estate and its Administration
  2. Federal Gift and Estate Taxes
  3. Common Estate Planning Trusts
  4. Calculating Federal Estate Taxes
  5. State Death Taxes
  6. Estate Tax Payment

The text serves as an introduction to the issues of estate settlement and includes a discussion of the probate estate and the federal gross estate.  The roles of the executor and administrator are also explained.  The student is taken through the steps of a federal estate tax calculation, beginning with a discussion of the components of the federal gross estate and continuing with an explanation of adjusted gross estate, taxable estate, tentative tax base, tentative tax and tax payable before credits.  The various credits and deductions are examined—including the marital deduction, unified tax credit, state death tax credit, credit for foreign death taxes and credit for tax on prior transfers—and their place in the federal estate tax calculation is explained.  The role of trusts in estate tax minimization is considered, and an explanation of the common trusts employed in estate tax planning is given. The uses of credit shelter trusts, QTIP trusts and irrevocable life insurance trusts are demonstrated.  State death taxes are considered, and inheritance taxes are compared to estate taxes with respect to the party liable for payment and the role of decedent/beneficiary relationships in inheritance taxation.  Finally, the sources of estate tax payment are examined and compared.

There are nine learning objectives for the agent or individual taking this course to gain knowledge from.  These objectives are found throughout the text and are reinforced in the exam questions.

  • Explain the differences between an estate for tax purposes and a probate estate
  • Identify those assets that comprise the federal gross estate
  • Understand the duties of an executor
  • Understand the difference between inheritance taxes and estate taxes and the typical beneficiary classifications for state inheritance tax purposes
  • Explain how gifts are taxed under the federal gift tax system
  • Identify the deductions and credits allowed under the federal system of estate taxation
  • Discuss the common trusts employed in estate tax planning
  • Perform an estate tax calculation
  • Identify the methods of estate tax payment and their cost consequences

Welcome to Estate Tax Planning PA!