In other cases, the issue of a retained life interest (IRC §2036) comes up. This complex issue is a major tax matters issue between clients and the IRS. Life interests, remainder interests, life estates, pre-mortem interests, post-mortems interests, gifts, voting and non-voting interests, and related and underlying subset issues all play a key role in estate and tax planning. Accurately researching these issues is imperative. These issues typically tie back to valuation.
Because the DOD (and Alternate) Valuation traditionally leads to a step-up in basis of estate (and qualifying trust) assets, the accurate determination of such is paramount. The step-up in basis is one of the most important aspects of wealth preservation and asset planning.
We have extensive experience composing Asset Inventories for law firms to use with Court-required Inventories as well as for part of the Inheritance Tax Determinations. At the same time, these Asset Inventories can serve as the basis of the federal estate tax return (Form 706). Our Asset Inventories benefit clients, law firms, CPA firms, fiduciaries (individual and corporate), and estate/trust beneficiaries. Valuation is arguably the fundamental contention with the IRS. Experienced, credible, good-faith and accurate valuation is the core for estate and trust planning success.