706 EXPENSES - Schedule J or L

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706 EXPENSES - Schedule J or L

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Geoff Given

Posted 8/20/2007 11:19:26 AM

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Last Login: 8/20/2007 11:56:08 AM
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where are people reporting administative expenses on a 706 under the following fact situation, on Schedule J or L-2?

Facts are as follows:

unmarried decedent
100% of assets were in a revocable living trust
no probate has or will be opened
The estate is a taxable estate
There are no outstanding creditor's claims
Expenses include attorney's fees, accountant fees, expenses incurred in preserving and selling property which was sold to pay estate tax.

Thanks in advance for any comments.

Post #446

John Jacobson

Posted 8/20/2007 12:45:03 PM

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In California, revocable trust assets are subject to claims, so Sch. J.

John Jacobson

Post #447

Anonymous

Posted 8/20/2007 12:58:53 PM

I usually only use Schedule L for expenses of a QTIP trust on the 2nd death.

Post #449

Mary Kay Foss

Posted 8/21/2007 3:17:56 PM

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I have always used Schedule J but had an IRS Estate Tax Attorney tell me I should have used Schedule L. Now I type a legend on Schedule L that says all expenses whether subject to claims or not are being shown on Schedule J for convenience.

The last 706 I did was a combination living trust, probate estate - the trustee was not the named executor. I put all of the probate expenses on Schedule J and the trust administration on Schedule L.

Mary Kay Foss

Post #450

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