The estate tax may be difficult to pay by high net worth families, particularly if a family business, real estate operation, or farm is involved.

Although in many cases no estate tax is due when the first spouse dies, even in very large estates, the estate representative is still required to file an estate tax return. Properly reporting and presenting this first return is a crucial first step in laying the foundation for minimizing the estate tax due upon the death of the second spouse.

The estate tax is usually payable only when the second spouse passes on, normally nine months after the date of death. There are many important factors to consider at this time.

First and foremost is working to create liquidity sufficient to pay the estate tax due. Another important step is working with family members so that all beneficiaries are familiar with the process.

Our estate experts do much more than just prepare accurate estate tax returns. We assist with a variety of estate tax savings opportunities, such as valuation issues, allocation of the generation-skipping exemption, the prior transfer credit, and delayed payment of estate taxes, if applicable. And, we specialize in defending the estate tax return (Form 706) against an IRS audit.