Q: I am not clear on how to show the value of a QTIP and offsetting marital deduction on the NJ Estate Return (see details)
My father died in August 2015. I set up a credit shelter trust of $675K in December. It is now worth $700K. When my mother dies and I have to prepare the final estate tax return for her, is the credit shelter trust (QTIP) included on Line 4A and added back (the instructions seem to require this) and if it is, do I include the same dollar amount on line 5A as a deduction. This seems to be the only way to make sense of this although the instructions say that Schedule E2 deductions (Line 5A) do NOT include QTIP Property. I need a clarification on this so I will benefit from the marital deduction exclusion when I actually have to pay the estate tax.
A: you should schedule a consult with a tax attorney who has an LLM. doing a return yourself if done incorrect could subject the executor to penalties
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