Allocating estate assets to beneficiaries (706)

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The following procedures will explain how to allocate specific assets and deductions, and how to allocate residual estate assets.

Allocating specific assets and deductions

This procedure explains how to allocate specific assets and deductions to beneficiaries on the Beneficiary Asset Reconciliation Worksheet. The sum of the specific amount entered and the calculated percentage portion appears on Form 706, Part 4, line 5.

To allocate an asset to a single beneficiary:

  1. Click the Beneficiary folder, then click the Names tab.
  2. Enter the beneficiary information under Identify Spouse, Beneficiary, Executor, Representative.
  3. Click the Asset folder, under General Information, choose the beneficiaries’ name from the Beneficiary / ratio field.

To allocate an asset among multiple beneficiaries:

  1. Click the Beneficiary folder, then click the Names tab.
  2. Enter beneficiary information under Identify Spouse, Beneficiary, Executor, Representative section.
  3. For each beneficiary, click the Bene tab, select a ratio line, and give that ratio a name.
  4. Click the Percent field and enter a whole number for the ratio you would like to assign to this beneficiary.
  5. To set up a ratio for a different beneficiary, click the Names tab twice, select the appropriate beneficiary, then click the Bene tab again. Or, you could select the beneficiary from the folders block.
  6. Click the Asset folder under General Information, choose the beneficiaries’ name from the Beneficiary / ratio field.

Example: If there are 4 beneficiaries who are splitting an asset 25% each, then for the first beneficiary you would go to the Bene tab, select a ratio line, and give that ratio a name. Then enter the percentage as a whole number (25, not 0.25) in the Percentage field. When you go to this screen for the second beneficiary, the ratio will already have the ratio name on the same line. Simply enter the percentage in the Percentage field for this beneficiary and repeat for all beneficiaries.

To allocate deductions to beneficiaries:

  1. Click the Schedule folder in the folder block, then click the A-L tab.
  2. Click a statement dialog from the Expenses or Debts and Losses sections, then select a ratio in the Bene / Ratio column in order to allocate the deductions.
  3. You can only print one item per line. If an item has more than one value, the application combines the values.

Example: Item 1 on Schedule A has two parts. The first part is the value of the rental property; the second part is the rent receivable at death. These amounts will be combined on Schedule M.

For more information on allocating residual estate, or allocating assets to spouses, charities, or beneficiaries, see these articles.

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