Allocating estate assets and deductions to spouse (706)

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This procedure explains how to allocate estate assets and deductions to the spouse on Schedule M.

UltraTax CS calculates the allocation of estate assets and deductions to the spouse, charities, and other beneficiaries based on data entry. Specific allocations are recognized before residual calculations occur.

  1. Choose File > Open Client, select the desired client, and click the Open button.
  2. Click the General folder, then click the 706 tab.
  3. Enter the decedent information, as required.
  4. Click the Beneficiary folder and then click the Names tab.
  5. Enter information pertaining to the surviving spouse, other individuals, trusts, other estates, and/or charitable organizations that received benefits from the estate. Refer to the Allocating estate assets to beneficiaries procedure for assistance, if necessary.
  6. Click the Asset folder, then click the Asset tab.
  7. Enter the applicable estate asset information.
  8. Click the Schedule folder, then click the A-L tab.
  9. Enter the applicable estate deduction information.
  10. Click the U tab, then enter any applicable conservation easement information.
  11. While in the Schedule folder, click the M&O tab. The following options are available to allocate estate assets and deductions to the spouse.

    Enter 1 in the Calculation of specific marital bequest field in the Schedule M - Specific Bequest to Surviving Spouse section of Screen M&O. All assets and deductions entered for the estate on Screens Asset, A-L, and U are listed on Schedule M. Specific allocations to other beneficiaries are not considered.

    Enter marital percentages in the Marital Share column on the same line as amounts in the statement dialogs when you enter deductions on Screens A-L and U or in the Martial share field when you enter assets on Screen Asset. Use the format ###.#### to enter percentages. For example, for 50 percent enter 50. It appears in the field as 50.0000.

    Enter 2 in the Calculation of specific marital bequest field on Screen M&O, or leave the field blank. UltraTax CS defaults to using marital percentages for assets and deductions, if entered, unless 1 is entered in the Calculation of specific marital bequest field. Descriptions and allocated amounts of assets and deductions with a marital percentage are listed on Schedule M.

    Enter a percentage in the Interest in residual estate - Marital field in the Residuary Bequest Information section of Screen M&O. Use the format ###.#### to enter percentages. For example, for 50 percent enter 50. It appears in the field as 50.0000.

    If there is a residual estate to allocate after considering specific allocations to spouse, charities, and other beneficiaries, UltraTax CS prepares the Schedule M Residual Interests Worksheet to calculate the residual amount. Enter a description in the statement dialog for the Description of residual bequest field to appear with the residual amount on Schedule M.

    Enter 1 in the Calculate residual bequest - Marital field in the Residuary Bequest Information section of Screen M&O. If there is a residual estate to allocate after considering specific allocations to spouse, charities, and other beneficiaries, UltraTax CS prepares the Schedule M Residual Interests Worksheet to calculate the residual amount. Enter a description in the statement dialog for the Description of residual bequest field to appear with the residual amount on Schedule M.

    Enter 2 in the Calculate residual bequest - Marital field in the Residuary Bequest Information section of Screen M&O. If there is a residual estate to allocate after considering specific allocations to spouse, charities, and other beneficiaries, UltraTax CS prepares the Schedule M Residual Interests Worksheet to calculate the residual amount in excess of the effective exemption amount for the year. Enter a description in the statement dialog for the Description of residual bequest field to appear with the residual amount on Schedule M.

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