A is corrent. For 2013, an executor must file a federal estate tax return (Form 706) if the gross estate of a decedent exceeds $5.25 million. If a decedent made lifetime taxable gifts such that the decedent’s tax credit was used to offset gift tax, the $5.25 million exemption amount must be reduced by the exemption equivalent of the unified credit that was used. Since neither Smith nor Jones made any lifetime taxable gifts, the filing requirement that applies to their estates is $5.25 million. Therefore, a federal estate tax return must be filed for Jones because his gross estate was $5,300,000, while no federal estate tax return need be filed for Smith since his gross estate was $4,800,000.
B is incorrect. A return must be filed if the gross estate exceeds $5 million.
B is incorrect. A return must be filed if the gross estate exceeds $5 million.
D is incorrect. A return must be filed if the gross estate exceeds $5 million.
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