by Boyd Johnson on October 27, 2009
The 2009 version of Form 706 has now been released on the IRS website. If you practice in this area, it is always a good idea to read through the updated form and its instructions each year.
Of course the main change this year is that the exemption level rose to $3.5 million at the federal level (recall that Minnesota’s exemption level has remained at $1 million).
I have only had time to glance through the 2009 Form and Instructions so far, but it seems that not much has changed since 2008 on the form itself. I did notice what I believe to be new instructions on Schedule F for certain types of life insurance policies and valuation discounts on miscellaneous property. The latter appears to be aimed at lack of control discounts for limited liability companies.
If you catch anything else that is a change from previous years, tell us about it in the comments. I’ll also make another post if I see anything major.
Download the new forms at the IRS website:
Minnesota’s 2009 706 forms are also available:
Categorized in Practice Tips and tagged as estate tax
by Boyd Johnson on October 14, 2009
When it comes to joint ownership language on vehicle titles, Minnesota’s Driver and Vehicles Services Division operates within its own sphere of logic. The logic of the rules has perplexed more than one probate attorney.
Since this issue arises frequently and the DVS cipher is difficult to find even on its own website, I’m reproducing the secret code for easy future access.
The rules are as follows:
1. If two or more owners are joined on the title with one of the following magic words or phrases, the surviving owner(s) has the right of survivorship (joint tenancy):
- “or”
- “and/or”
- “right of survivorship” (though, I’ve never actually seen this designation)
2. If two or more owners are joined on the title with anything else (e.g. “and” or no conjunction), the surviving owner(s) has no right of survivorship (tenancy in common).
By way of examples, if the title reads:
- “Mary Roe or John Doe” = joint tenancy
- “Mary Roe and/or John Doe” = joint tenancy
- “Mary Roe and John Doe” = tenancy in common
- “Mary Roe, John Doe” = tenancy in common
Sources: “Just the Facts: Family of Deceased“, MN Dept. of Public Safety, published April 2009; and other sources.
Categorized in Practice Tips and tagged as joint ownership, probate, right of survivorship, tenancy in common, vehicle