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WORKSHEET 706C

To complete Form 706ME for estates containing Maine elective property

1. Federal gross estate (federal Form 706, Part 2, line 1) .................................................1.__________________________

2. Amount of property taxable by Maine included in line 1 above ..................................2.__________________________

3. Gross value of Maine elective property (enter here and on

Form 706ME, line 4E) ..................................................................................................3.__________________________

4. Amount of property taxable by Maine included in line 3 above ..................................4.__________________________

5. Modiﬁ ed federal gross estate (line 1 + line 3. Enter here and on

Form 706ME, line 2) ....................................................................................................5.__________________________

6. Modiﬁ ed Maine taxable property (line 2 + line 4. Enter here and on

Form 706ME, line 1) ....................................................................................................6.__________________________

7. Federal adjusted taxable gifts (from federal Form 706, line 4) ....................................7.__________________________

8. Taxable gifts and Maine elective property (line 3 + line 7.

Enter here and on Form 706ME, line 4B) ....................................................................8.__________________________

INSTRUCTIONS

For decedents with surviving spouses, Maine allows a

Line 3. The value of Maine elective property is the cur-

separate estate tax deduction for assets that are qualiﬁ ed

rent value of any remaining property contained in the QTIP

claimed on the predeceased spouse’s Maine estate tax return.

terminable interest property (“QTIP”) under IRC section

2056(b)(7), when a QTIP election is not made for federal

This line must include the value of the remaining property

estate tax purposes. The QTIP election defers taxation of the

regardless of location or type (tangible or intangible). The

property is valued at the date of death of the decedent on this

value of that election to the death of the decedent’s spouse

return (unless the alternate valuation date is used for all other

(second decedent spouse). The second decedent spouse’s

estate tax return must include the current value of any re-

assets in the estate).

maining Maine QTIP property on this line. This amount

Line 4. For Maine resident estates, include the amount on

is called Maine elective property. All holdings, including

cash, securities, as well as real estate and tangible personal

line 3, less the value of real and tangible personal property

property, that constitute Maine elective property must be in-

located outside of Maine. For nonresident estates, enter

cluded in the estate tax return. If this estate contains Maine

the value, included in line 3, of all real and tangible person-

al property located in Maine and personally owned by the

elective property, this worksheet must be included with

the Maine estate tax return.

decedent. This includes Maine real and tangible personal

property transferred to trusts, LLCs or other pass-through

vehicles.

For estates containing Maine elective property, Form 706ME,

lines 1, 2 and 4B must include the value of that property.

This worksheet must be completed in order to correctly cal-

Line 8. The federal taxable gifts and Maine elective prop-

culate the Maine estate tax.

erty total is used only to determine whether the threshold for

Maine taxability of an estate has been exceeded. Maine does

Line 2. For Maine resident estates, include the amount on

not tax prior taxable gifts. Although Maine elective property

line 1, less the value of real and tangible personal property

is included on Form 706ME, line 4E, it should also be in-

located outside of Maine. For nonresident estates, enter

cluded in this line in order to determine the taxable threshold

of the estate. Form 706ME, line 4B is not included in the

the value, included in line 1, of all real and tangible person-

al property located in Maine and personally owned by the

taxable estate.

decedent. This includes Maine real and tangible personal

property transferred to trusts, LLCs or other pass-through

vehicles.

8/07

Form 706me - Worksheet For Determining Estate Filing Requirement For Deaths Occurring In 2007 Page 4

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