Form 706me - Maine Estate Tax Worksheets - 2010 printable pdf download

INSTRUCTIONS FOR 2010 MAINE ESTATE TAX RETURN (36 MRSA §§ 4061 - 4079)

For FAQs and other estate tax information, see

New for 2010: New for 2010: The Maine estate tax for deaths occurring

in line 3 completed within the 365-day period ending on the date

after 2009 must be determined in accordance with the law

of death of the decedent.

applicable to decedents dying during calendar year 2009. As

Line 5: Value of gifts included in line 4 taxable by Maine.

Attach copy

a result, 2009 federal pro forma Form 706 must be completed

of appropriate federal pro forma Form 709.

in order to complete Maine Form 706ME for deaths occurring

in 2010. Line references to the federal form on Maine Form

Maine resident estates: Enter line 4 less the value of taxable

706ME and in the Maine instructions refer to the 2009 federal

gifts of real and tangible personal property included in line 4

pro forma Form 706.

located outside of Maine at the time of the gift.

Maine Worksheet 706C has been eliminated. Calculations

Maine nonresident estates: Enter the value included in line

previously performed on Worksheet 706C have been combined

4 of all gift of real and tangible personal property located in

with the calculations on Form 706ME, step 4.

Maine. This includes Maine real and tangible personal property

transferred to trusts, LLCs or other pass-through entities, but

The Maine Certiﬁ cate of Discharge of Estate Tax Lien for both

excluding property transferred to a pass-through entity for full

real and tangible personal property may now be submitted to

and adequate consideration for a valid business purpose – as long

Maine Revenue Services (MRS) as an attachment to an email

as the pass-through entity to which the property was transferred

sent to MRS at

estatetax@maine.gov.

The attachment may be

carries on a business for the purpose of proﬁ t and gain. Include

formatted as a pdf or word processing ﬁ le. A certiﬁ cate sent via

proceeds from the sale of property made in contemplation of

email is acceptable only if sent from the email address in either

death. See 36 MRSA § 4064.

Step 1 or Step 2 on the Maine estate tax Form 706ME. If you are

unable to, or prefer not to, ﬁ le the certiﬁ cate via email, you may

Line 7: Gross value of Maine elective property.

If the estate contains

ﬁ le the certiﬁ cate with Form 706ME. Although the certiﬁ cate

Maine elective property, Form 706ME must be ﬁ led. If the

may be submitted by email, Form 706ME must be sent by mail

decedent on this return had a predeceased spouse who claimed

to the appropriate address shown on page 2 of the form.

a Maine QTIP deduction on a Maine estate tax return, this

decedent’s estate tax return must include the current value of

Step 1 Enter all required information. Failure to fully complete Step

any remaining Maine QTIP property on this line, regardless of

1 will delay processing of the return. A personal representative

location or type (tangible or intangible). This amount is called

can also be known as an executor or any other individual legally

Maine elective property. All holdings, including cash, securities,

responsible for administration of the estate. If a personal

as well as real estate and tangible personal property, that constitute

representative has not been appointed, qualiﬁ ed and acting

Maine elective property must be included on this line. The

in the United States, every person in actual or constructive

property must be valued at the date of death of the decedent on

possession of any property of the decedent is considered a

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

personal representative and must ﬁ le a return or be listed on the

assets in the estate). See Rule 601 for more information.

single return that is ﬁ led for the estate. If the estate has more

than one personal representative, ﬁ ll in the information for one

Line 8: Value of property included in line 7 taxable by Maine.

personal representative and attach a schedule listing all other

Maine resident estates: Enter line 7 less the value of real and

personal representatives. A personal representative, including

tangible personal property located outside of Maine included in

a nonresident, may have to ﬁ le a Maine income tax return for

the line 7 total.

any estate fees or other income earned in Maine. For more

information, see Maine Rule 806 and the instructions for Form

Maine nonresident estates: Enter the value, included in line

1040ME, Schedule NR at

7, of all real and tangible personal property located in Maine

and included in the QTIP. This includes Maine real and tangible

Step 2 This step must be completed if you choose to have copies of

personal property transferred to trusts, LLCs or other pass-through

conﬁ dential tax information sent to anyone other than the personal

entities. Include proceeds from the sale of property made in

representative, such as the preparer of Form 706ME. If a paid

contemplation of death. See 36 MRSA § 4064.

preparer completed the return, that preparer must also sign the

return on page 2.

Line 9: Maine Qualified Terminable Interest Property (QTIP)

Election.

Maine allows an estate tax deduction for assets that are

Step 3 Check the appropriate box for the decedent’s residency status.

eligible for the QTIP election under IRC section 2056(b)(7), when

For additional information concerning residency status, visit

a QTIP election is not made on that property for federal estate tax

and review

purposes. The completion of line 9 with an amount greater than

“Guidance to Residency Status.”

zero constitutes a Maine QTIP election for eligible property by

Step 4 Tax Computation. Complete this section based on 2009 federal

the executor or personal representative. The maximum allowable

pro forma Form 706. If the federal total gross estate (line 1) plus

Maine QTIP deduction on line 9 is the difference between the

federal adjusted taxable gifts (line 3) is greater than $1,000,000,

decedent’s federal exclusion amount and the Maine exclusion

or the estate has Maine elective property (line 7) or is making

amount, but in no event may the Maine QTIP deduction exceed

a Maine QTIP election greater than zero (line 9), a completed

$2,500,000 for 2010. If the deduction on line 9 is a portion of

Form 706ME must be submitted. Otherwise, you may ﬁ le Form

a trust included in the federal taxable estate (2009 federal pro

706ME-EZ to request a discharge of the automatic property lien

forma Form 706), the executor or personal representative is

provided under 36 MRSA § 4072.

considered to have made an election only as to a fraction of the

trust (or other property). The numerator of this fraction is equal

Line 2: Value of Federal Total Gross Estate taxable by Maine.

to the amount of the trust (or other property) deducted on line

Maine resident estates: Enter line 1 less the value of real and

9, and the denominator is equal to the total value of the trust (or

tangible personal property owned by the decedent and located

other property) at the time of death of the deducting decedent

outside of Maine.

(prior decedent spouse). Attach a description of the Maine QTIP

property. Maine QTIP property cannot consist of items that were

Maine nonresident estates: Enter the value included in line 1

includible as taxable gifts on the federal return ( 2009 federal pro

of all real and tangible personal property located in Maine and

forma Form 706). The Maine QTIP election defers taxation of

owned by the decedent. This includes Maine real and tangible

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

personal property transferred to trusts, LLCs or other pass-

(subsequent decedent spouse). The Maine estate tax return for the

through entities, but excluding property transferred to a pass-

subsequent decedent spouse must include the remaining value of

through entity for full and adequate consideration for a valid

the Maine QTIP property, which is referred to as Maine elective

business purpose – as long as the pass-through entity to which

property. See Rule 601 for more information.

the property was transferred carries on a business for the purpose

of proﬁ t and gain. Include proceeds from the sale of property

Line 20:Payments.

Enter the total amount of Maine estimated and

made in contemplation of death. See 36 MRSA § 4064.

extension payments made for this estate. If this is an amended

return, include on this line the amount of Maine estate tax paid

Line 4: Value of taxable gifts included in line 3 made within one year

with the original return.

of date of death.

Enter the total value of taxable gifts included

2010 Form 706ME, Page 3

Form 706me - Maine Estate Tax Worksheets - 2010

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