Estate Tax Form M706 Instructions 2004 - FormSend

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Federal 706 worksheet instructionsYou must first complete afederal 706 worksheetEven though you may have completedfederal Form 706, United States Estate (andGeneration-Skipping Transfer) Tax Return,you must also complete lines 1 through 12on a separate federal Form 706 (Rev. August2002) using the federal law in effect prior tothe changes enacted in 2001. This separateform will be used as a worksheet todetermine your Minnesota estate tax.When you complete your federal 706worksheet, use the following instructions:Lines 1 through 5: Determine the amounts toenter on these lines using the federal 2002instructions.Line 6: Use Table A (at right) and theamount on line 5 of your federal 706worksheet to determine the federal tentativetax to enter on line 6.Lines 7 and 8: Determine the amounts toenter on these lines using the federal 2002instructions.Line 9: Enter $287,300. This is the maximumunified credit for dates of death in2004.Lines 10 through 12: Determine the amountsto enter on these lines using the federal 2002instructions.If you use a software package, be sure toverify that the appropriate table amount online 6 and the correct maximum unifiedcredit amount on line 9 are used.You must attach to your Form M706 thefederal 706 worksheet and all requiredschedules that list an amount.Table A —Use to determine line 6 of federal 706 worksheetIf line 5 of your federal706 worksheet is:but subtract multiplyover not over from line 5 result by and add$ 0 . . . $ 10,000 . . . . . . . . .$ 0 . . . . 18% . . . . . . . . . . $ 010,000 . . . . 20,000 . . . . . . 10,000 . . . . 20% . . . . . . . . 1,80020,000 . . . . 40,000 . . . . . . . 20,000 . . . . 22% . . . . . . . . 3,80040,000 . . . . 60,000 . . . . . . . 40,000 . . . . 24% . . . . . . . . 8,20060,000 . . . . 80,000 . . . . . . . 60,000 . . . . 26% . . . . . . . 13,00080,000 . . . 100,000 . . . . . . . 80,000 . . . . 28% . . . . . . . 18,200100,000 . . . 150,000 . . . . . . 100,000 . . . . 30% . . . . . . . 23,800150,000 . . . 250,000 . . . . . . 150,000 . . . . 32% . . . . . . . 38,800250,000 . . . 500,000 . . . . . . 250,000 . . . . 34% . . . . . . . 70,800500,000 . . . 750,000 . . . . . .500,000 . . . . 37% . . . . . . 155,800750,000 . . 1,000,000 . . . . . . 750,000 . . . . 39% . . . . . . 248,3001,000,000 . . 1,250,000 . . . . 1,000,000 . . . . 41% . . . . . . 345,8001,250,000 . . 1,500,000 . . . . 1,250,000 . . . . 43% . . . . . . 448,3001,500,000 . . 2,000,000 . . . . 1,500,000 . . . . 45% . . . . . . 555,8002,000,000 . . 2,500,000 . . . . 2,000,000 . . . . 49% . . . . . . 780,8002,500,000 . . 3,000,000 . . . . 2,500,000 . . . . 53% . . . . 1,025,8003,000,000 . . — — — — . . . . 3,000,000 . . . . 55% . . . . 1,290,800Enter the result on line 6 of your federal 706 worksheet.Use a mailing labelUse one of these mailing labels on your own envelope to mail your Form M706 and copies of the estate’s federal return, requiredschedules and death certificate. (Cut on the dotted line and tape to your envelope.)Mail Station 1315St. Paul, MN 55146-1315Mail Station 1315St. Paul, MN 55146-13154
Line instructionsYou will need your federal 706worksheet to complete yourForm M706.See page 4 for details.Executor(s)Enter the name, address and Social Securitynumber of the appointed executor in thedesignated area on Form M706.If more than one executor was appointedby the Probate Court or Probate Registrar,you must attach a separate sheet of paperlisting all of the other appointed executors’names, addresses and Social Securitynumbers.All appointed executors must sign thecompleted Form M706.Estates of Minnesotaresidents—Lines 1–6Line 1Tentative Minnesota estate taxTo determine the amount to enter on line 1of your Form M706, follow the steps below:1 Federal taxable estate (fromline 3 of your federal 706worksheet) . . . . . . . . . . . . . .2 Minimum amount . . . . . . .3 Adjusted taxable estate(subtract step 2 fromstep 1) . . . . . . . . . . . . . . . . . .4 Using the result fromstep 3 and Table B at right,determine the amount toenter here . . . . . . . . . . . . . . .5 Gross estate tax (fromline 8 of your federal 706worksheet) . . . . . . . . . . . . . .6 Maximum unified credit(from line 9 of your federal706 worksheet) . . . . . . . . . .7 Subtract step 6 from step 5 .8 Enter the amount fromstep 4 or step 7, whicheveris less. Also enter thisamount on line 1 of yourForm M706 . . . . . . . . . . . . .$60,000$287,300If you want to verify your calculation, usethe estate tax calculator available atwww.taxes.state.mn.us. To access, youmust have Microsoft Excel installed onyour computer.Line 2Gross value of property in other statesFrom the federal estate tax return, add thegross values of each item of the decedent’sreal and tangible personal property locatedin other states. Include the total on line 2.Estates of nonresidents ofMinnesota—Lines 7–11Line 7Tentative Minnesota estate taxDetermine the amount to enter on line 7 byfollowing the steps provided in the line 1instructions. Enter the amount from step 8on line 7 of your Form M706.Line 8Gross value of property in MinnesotaFrom the federal estate tax return, add thegross values of each item of the decedent’sreal and tangible personal property locatedin Minnesota. Enter the total on line 8.All estates—Lines 12–18Line 12Payments previously madeIf—before you filed this return—you paidMinnesota estate tax, enter the amountyou’ve already paid, including any extensionpayment made electronically or whenfiling a PV86 payment voucher.Table B—Use to determine step 4 of the line 1 worksheetIf step 3 of the line 1worksheet is:subtract multiplyat least but less than from step 3 result by and add$ 0 . . . $ 40,000 . . . . . . . . .$ 0 . . . . . . . . . . . . . . . . . $ 040,000 . . . . 90,000 . . . . . . 40,000 . . . . . 0.8% . . . . . . . . . 090,000 . . . 140,000 . . . . . . . 90,000 . . . . . 1.6% . . . . . . . 400140,000 . . . 240,000 . . . . . .140,000 . . . . . 2.4% . . . . . 1,200240,000 . . . 440,000 . . . . . .240,000 . . . . . 3.2% . . . . . 3,600440,000 . . . 640,000 . . . . . .440,000 . . . . . 4.0% . . . . 10,000640,000 . . . 840,000 . . . . . .640,000 . . . . . 4.8% . . . . 18,000840,000 . . 1,040,000 . . . . . . 840,000 . . . . . 5.6% . . . . 27,6001,040,000 . . 1,540,000 . . . . 1,040,000 . . . . . 6.4% . . . . 38,8001,540,000 . . 2,040,000 . . . . 1,540,000 . . . . . 7.2% . . . . 70,8002,040,000 . . 2,540,000 . . . . 2,040,000 . . . . . 8.0% . . . 106,8002,540,000 . . 3,040,000 . . . . 2,540,000 . . . . . 8.8% . . . 146,8003,040,000 . . 3,540,000 . . . . 3,040,000 . . . . . 9.6% . . . 190,8003,540,000 . . 4,040,000 . . . . 3,540,000 . . . . 10.4% . . . 238,8004,040,000 . . 5,040,000 . . . . 4,040,000 . . . . 11.2% . . . 290,8005,040,000 . . 6,040,000 . . . . 5,040,000 . . . . 12.0% . . . 402,8006,040,000 . . 7,040,000 . . . . 6,040,000 . . . . 12.8% . . . 522,8007,040,000 . . 8,040,000 . . . . 7,040,000 . . . . 13.6% . . . 650,8008,040,000 . . 9,040,000 . . . . 8,040,000 . . . . 14.4% . . . 786,8009,040,000 . 10,040,000 . . . . 9,040,000 . . . . 15.2% . . . 930,80010,040,000 — — — — . . . 10,040,000 . . . . 16.0% . . 1,082,800Enter the result on step 4 of the line 1 worksheet.5
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Estate Tax Form M706 Instructions 2004 - FormSend

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