Instructions And Worksheet For 2008 Maine Estate Tax Return (Page 3 of 5) in pdf

MAINE ESTATE TAX

FORM 706ME

WORKSHEET 706C

For estates containing Maine elective property

Enclose this worksheet with Form 706ME.

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. Modified federal gross estate (line 1 + line 3. Enter here and on

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

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

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

INSTRUCTIONS

For decedents with surviving spouses, Maine allows an es-

in Maine and personally owned by the decedent. This in-

tate tax deduction for assets that are qualified terminable

cludes Maine real and tangible personal property transferred

interest property (“QTIP”) under IRC section 2056(b)(7),

to trusts, LLCs or other pass-through entities.

when a QTIP election is not made on that property for fed-

eral estate tax purposes. The Maine QTIP (“MEQTIP”) elec-

Line 3. The value of Maine elective property is the current

tion defers taxation of the MEQTIP property to the death

value of any remaining property contained in the MEQTIP

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

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

second decedent spouse’s estate tax return must include the

This line must include the value of the remaining property

value at the time of death of the second spouse of any re-

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

maining MEQTIP property. This amount is called Maine

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

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

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

well as real estate and tangible personal property, that con-

assets in the estate).

stitute Maine elective property must be included in the estate

tax return. If this estate contains Maine elective property,

Line 4. For Maine resident estates, enter line 3 less the val-

this worksheet must be included with the Maine estate

ue of real and tangible personal property located outside of

tax return.

Maine. For nonresident estates, enter the value, included

in line 3, of all real and tangible personal property located

For estates containing Maine elective property, Form 706ME,

in Maine and personally owned by the decedent. This in-

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

cludes Maine real and tangible personal property transferred

This worksheet must be completed in order to correctly cal-

to trusts, LLCs or other pass-through entities.

culate the Maine estate tax.

Line 2. For Maine resident estates, enter line 1 less the val-

ue of real and tangible personal property located outside of

Maine. For nonresident estates, enter the value, included

in line 1, of all real and tangible personal property located

REV 9/08

Instructions And Worksheet For 2008 Maine Estate Tax Return Page 3

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