Form 8971 – Estate basis notification to beneficiaries

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Message Board Form 8971 – Estate basis notification to beneficiaries

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    Ellen Briscoe

    I have an estate valued at $7 mil+. Date of death is Nov 2017. So I am filing a 706. There will be no estate tax due because there is are specific bequests of about $2mil. The remainder goes to charities. Decedent has $13,000 worth of jewelry. Very much of it was costume. The decedent left a list of things to be given to some of her caregivers and friends. On person received some jewelry that appraised for $15 (Fifteen dollars). That is all she received. Reg 1.6035-1(b)(1)(iii) says that Tangible personal property for which an appraisal is not required under Sect 20.2031-6(b) does not need to be reported. The PPC 706 Deskbook says that this means that if the decedent made many specific bequests, each of which is valued at $3,000 or less, such as dishes, jewelry, or furniture, or items of minimal value… reporting is not required.

    How do you interpret the regulation? – If there is a collection of jewelry that exceeds $3,000, an appraisal is required. Does this mean that if there is a collection requiring an appraisal, anyone who gets a piece of jewelry will have to be included on Form 8971. Or, if the beneficiary receives something that is valued at less than $3,000, since that one item does not require an appraisal, it does not need to be reported.

    Ellen C Briscoe, EA