Form 706me - Worksheet For Determining Estate Filing Requirement For Deaths Occurring In 2006


(36 M.R.S.A. §§ 4061 - 4079)
For the latest updates, frequently asked questions, and information about the Maine estate tax, visit
Property Value Defi ned. For estates of decedents dying on or after January 1, 2006 property value means: (1) for estates with a federal liability,
“value” is as federally determined unless the State Tax Assessor has determined a different value under the IRC; (2) for estates with no
federal liability, but taxable to Maine, “value” is as determined by the State Tax Assessor under federal law. See PL 2005, c. 622, § 17.
Resident Estates. The calculation of Maine estate tax of resident decedents is determined by excluding from Maine tax real and tangible
personal property located out-of-state, even if that property is located in a state with no estate tax. See PL 2005, c. 622, § 18. All assets,
however must be included in the gross estate on line 2 of Form 706ME.
Refund Claim. A personal representative or other responsible party must request a refund of estate tax overpayments within three years of
the time the return is fi led or within two years of the time the tax was paid, whichever expires later. See PL 2005, c. 622, § 24.
Maine decouples from federal tax. There is no federal state death tax credit for estates of decedents dying after 2004. A pro forma federal
state death tax credit amount is used for purposes of calculating the Maine estate tax. The worksheet for Line 5 (Maine gross estate tax)
is provided on page 4. For 2006 decedents, the applicable Maine credit for line 6 of the worksheet is $345,800. This corresponds to the
Maine exclusion amount of $1,000,000 (the federal exclusion amount is $2,000,000).
Filing requirement. A Maine estate tax return is required to be fi led for a 2006 decedent when a federal estate tax return is required to be
fi led or when the federal gross estate plus adjusted taxable gifts exceeds $1,000,000. See 36 M.R.S.A. § 4068.
Maine Qualifi ed Terminable Interest Property (“QTIP”). Beginning with 2005 decedents, an estate may elect to include some or all of the
difference between the decedent’s federal exclusion amount under IRC § 2010(c) and the Maine exclusion amount as separate QTIP property
for Maine estate tax purposes. See instructions for lines 4D and 4E.
Property transferred to a pass-through entity. For estates of nonresident decedents dying on or after January 1, 2005, real and tangible
personal property located in Maine transferred by the decedant into trust, limited liability company or other pass-through entity is treated
as though the entity or instrument did not exist. The decedent’s interest is taxed in Maine to the extent that such property is included in
the decedent’s federal gross estate, actual or pro forma. See 36 M.R.S.A. § 4064.
Alternate valuation date. The personal representative of a taxable Maine estate may elect the alternate valuation date for determining the
value of the estate’s property. The alternate valuation date is the date used for federal estate tax purposes or, if there is no federal tax
liability, an alternate valuation date that meets federal requirements.
Qualifi ed Domestic Trust (“QDOT”). If you are fi ling a federal Form 706-QDT for a Maine decedent, you must also fi le an amended Maine
estate tax return, Form 706ME, including a copy of the federal Form 706-QDT. A distribution from a qualifi ed domestic trust (“QDOT”) that
requires the fi ling of federal Form 706-QDT return will also increase the Maine taxable estate and the Maine estate tax.
Step 1
Enter all required information. Failure to fully complete this section
For Maine nonresident estates: Include all real and personal
will delay the processing of the return. If a personal representative
property located in Maine and personally owned by the
has not been appointed, qualifi ed and acting in the United States,
decedent. This includes Maine real and tangible personal
every person in actual or constructive possession of any property
property contained in Maine Elective Property or transferred to
of the decedent is considered a personal representative and
trusts, LLCs or other pass-through vehicles (see 36 M.R.S.A. §
must fi le a return. A personal representative can also be known
as an executor or any other individual legally responsible for
Line 2
Enter the total gross estate from federal Form 706, Part 2, Line
administration of the estate. If there is more than one personal
1. If no federal estate tax return was required, but the total gross
representative, fi ll in the information for one personal representative
estate, including adjusted taxable gifts (federal Form 706, Part 2,
and attach a schedule listing all personal representatives.
Line 4) is greater than $1,000,000, complete a pro forma federal
Step 2
This section must be completed if you choose to have copies of
Form 706.
confi dential tax information sent to anyone other than the personal
Line 4A
Enter the amount of the taxable federal estate for actual or pro
representative, such as the preparer of Form 706ME. If you are a
forma purposes, federal Form 706, Part 2, Line 3a.
paid preparer, you must also sign the return on page 2.
Line 4C
Enter the sum of lines 4A and 4B. If the amount is greater than
Step 3
Check the appropriate box for the estate’s residency status. For
$1,000,000, the estate is taxable to Maine and a completed Form
additional information concerning residency status visit
706ME must be submitted. If less than $1,000,000, you may fi le
and review “Maine Revenue
a Form 706ME-EZ.
Services Guidance to Residency Status.”
Line 4D
For decedents with surviving spouses, Maine allows a separate
Step 4
Tax Computation. If the total gross estate plus adjusted taxable
estate tax deduction for assets that are Qualifi ed Terminable
gifts is $2,000,000 or less, complete this section based on a pro
Interest Property (QTIP) under IRC Section 2056(b)(7), regardless
forma federal return. If the amount is greater than $1,000,000,
of whether a QTIP election is made for federal estate tax purposes.
the estate is taxable to Maine and a completed Form 706ME
The completion of Line 4D with an amount greater than zero
must be submitted. If less than $1,000,000, you may fi le a Form
constitutes a QTIP election for eligible Maine QTIP property
by the executor or personal representative. The maximum
Line 1
Maine’s portion of total federal gross estate.
allowable QTIP deduction on Line 4D is the difference between
For Maine resident estates: Subtract the value of real and
the decedent’s federal exclusion amount (or, if no federal return
tangible personal property not located in Maine from the total
is required, the pro forma federal taxable estate) and the Maine
federal gross estate. See 36 M.R.S.A. § 4063.
Even if you are not required to fi le a federal return, you may still be liable for Maine tax if the total gross estate plus adjusted taxable
gifts is greater than $1,000,000. If you are not required to fi le a federal return and the total gross estate plus adjusted taxable gifts
is $1,000,000 or less, there is no Maine estate tax liability.
Rev. 08/06
2006 Form 706ME, Page 3


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