California Society of CPAs
Home       Members    Calendar    Who's On
Welcome Guest ( Login | Register )
        

Home » CalCPA Discussion Forum » Estate Planning » Defined benefit plans on 706

Defined benefit plans on 706 Expand / Collapse
Author
Message
Posted 10/17/2007 6:34:02 AM
Member

MemberMemberMemberMemberMemberMemberMemberMember

Group: Forum Members
Last Login: 10/17/2007 6:21:47 AM
Posts: 2, Visits: 3
Decedent husband was receiving benefits from a corporate defined benefit plan. Wife is now receiving retirement benefits from the plan under a joint and survivor election made by husband.

Did decedent have a community property interest in wife's future retirement benefits? Is this reported on decedent's 706, and if so, how is it valued?

Related question. Wife is receiving benefits from a government defined benefit plan. Did dededent husband have a community property interest in wife's retirement benefits? If this reported on decedent's 706, and if so, how is it valued?

Post #469
Anonymous
Posted 10/17/2007 9:23:42 AM




I value the benefits by using the tables under Reg 20.2031-7 and the monthly payments the surviving spouse receives immediately following death, then back off 50% of the total due to the surviving spouse's community property interest. On Sch M, a deduction is taken for the decedent's 50% passing to the spouse as a named beneficiary of the decedent's pension and as the surviving co-owner of her own pension.
Post #470
Posted 10/21/2007 2:49:19 PM
Power Member

Power MemberPower MemberPower MemberPower MemberPower MemberPower MemberPower MemberPower Member

Group: Forum Members
Last Login: 2 days ago @ 11:00:56 AM
Posts: 113, Visits: 489
The continuing retirement benefits to the surviving spouse are an asset for Form 706 and they are valued as described above.

The decedent had a community property interest in the retirement benefits of his spouse but he is unable to direct where they would go upon his death. This was clarified by the Supreme Court Case Boggs vs Boggs. One estate tax attorney said that they should be disclosed but the value would be zero.

The general rule for reporting retirement benefits is that you report benefits that someone will receive as a result of the passing of the decedent. Under that standard the spouse's benefits would not be listed.

Mary Kay Foss

Post #476
« Prev Topic | Next Topic »


All times are GMT -8:00, Time now is 5:11am

Powered by InstantForum.NET v4.1.4 © 2009
Execution: 0.094. 13 queries. Compression Disabled.