Allocating estate assets and deductions to charities (706)

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This procedure explains how to allocate estate assets and deductions to charitable organizations on Schedule O. The application 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.

Note: This procedure assumes decedent, spouse, charitable organization, and beneficiary information has been entered on Screens 706 and Names in the General folder, as applicable.

  1. Choose File > Open Client, select the desired client, and click the Open button.
  2. Click the Asset folder, and then click the Asset tab.
  3. Enter the applicable estate asset information.
  4. Click the Schedule folder, and then click the A-L tab.
  5. Enter the applicable estate deduction information.
  6. Click the U tab, and enter any applicable conservation easement information.
  7. While in the Schedule folder, click the M&O tab. The following options are available to allocate estate assets and deductions to charitable organizations.

    Select the names of the charitable organizations from the drop-down list and enter amounts in the statement dialog for the Information for charitable, public, and similar gifts field on Screen M&O. Use the Specific Amount (Force) column to enter charitable amounts if they are not allocated on Screen Asset. Descriptions and amounts entered in the statement dialog are listed on Schedule O.

    Note: If the name you want to select is not available in the drop-down list, you can add it by entering the charity information on Screen Names.

    Enter a percentage in the Interest in residual estate - Charitable field in the Residuary Bequest Information section. 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, the application prepares the Schedule O Residual Interests Worksheet to calculate the residual amount. Select the names of the charitable organizations from the drop-down list and enter percentages in the Residual Percent column in the statement dialog for the Information for charitable, public, and similar gifts field that you want to appear on Schedule O.

    Enter 1 in the Calculate residual bequest - Charitable field in the Residuary Bequest Information section. If there is a residual estate to allocate after considering specific allocations to spouse, charities, and other beneficiaries, the application prepares the Schedule O Residual Interests Worksheet to calculate the residual amount. Select the names of the charitable organizations from the drop-down list and enter percentages in the Residual Percent column in the statement dialog for the Information for charitable, public, and similar gifts field that you want to appear on Schedule O.

    Enter 2 in the Calculate residual bequest - Charitable field in the Residuary Bequest Information section. If there is a residual estate to allocate after considering specific allocations to spouse, charities, and other beneficiaries, the application prepares the Schedule O Residual Interests Worksheet to calculate the residual amount in excess of the effective exemption amount for the year. Select the names of the charitable organizations from the drop-down list and enter percentages in the Residual Percent column in the statement dialog for the Information for charitable, public, and similar gifts field that you want to appear on Schedule O.

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