Investment Concepts, Inc.
KATIE KESSLER
Owner/President
231 E. Buffalo St.
4th Floor
Milwaukee, WI 53202
Office: 414-273-4280
Fax: 414-273-4378
kkessler@sagepointadvisor.com
www.icimke.com
 
 




Loss of a Spouse

What is a post-mortem election?

A post-mortem ("after death") election is an estate planning technique that can help minimize federal transfer tax or income tax liabilities. Post-mortem elections are usually made by an estate's personal representative. Each election must be timely made in the required fashion.

 

Types of Post-Mortem Elections

Transfer-tax-related elections

Disclaimers*

A disclaimer is a refusal to accept a gift, bequest, or other form of property transfer. This allows the beneficiaries to redistribute estate property without incurring transfer taxes on the redistribution.

The alternative valuation date

Assets in an estate are generally valued on the date of death. By electing the alternative valuation date, the assets in an estate that qualifies are valued either (1) six months after the date of death or (2) as of the date the asset is disposed of. This is advantageous if assets depreciate after death.

QTIP election

With a QTIP election, all or a portion of the assets that qualify for treatment as qualified terminable interest property (QTIP) pass free from estate tax under the unlimited marital deduction.

Income-tax-related election

Selection of fiscal year

The election of the tax year (either fiscal or calendar) for an estate allows the personal representative to divide income into as many taxable years as possible, prevent bunching of income in the first taxable year, or otherwise adopt the taxable year that results in minimizing the tax costs as much as possible.

Note:  Business owners have additional post-mortem elections available to them.

*Though not technically an election, disclaimers are an important post-mortem planning tool.



IMPORTANT DISCLOSURES
Securities and advisory services offered through SagePoint Financial, Inc., member FINRA/SIPC. Insurance services offered through Investment Concepts, Inc. which is not affiliated with SagePoint Financial, Inc. or registered as a broker-dealer or investment advisor.

Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. The information presented here is not specific to any individual's personal circumstances.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.



Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2019.