§2010 — Unified credit against estate tax
26 cases·1 followed·1 distinguished·1 criticized·23 cited—4% support
Statute Text — 26 U.S.C. §2010
A credit of the applicable credit amount shall be allowed to the estate of every decedent against the tax imposed by section 2001.
The amount of the credit allowable under subsection (a) shall be reduced by an amount equal to 20 percent of the aggregate amount allowed as a specific exemption under section 2521 (as in effect before its repeal by the Tax Reform Act of 1976) with respect to gifts made by the decedent after September 8, 1976.
For purposes of this section, the applicable credit amount is the amount of the tentative tax which would be determined under section 2001(c) if the amount with respect to which such tentative tax is to be computed were equal to the applicable exclusion amount.
For purposes of this subsection, the applicable exclusion amount is the sum of—
the basic exclusion amount, and
in the case of a surviving spouse, the deceased spousal unused exclusion amount.
For purposes of this subsection, the basic exclusion amount is $15,000,000.
In the case of any decedent dying in a calendar year after 2026, the dollar amount in subparagraph (A) shall be increased by an amount equal to—
such dollar amount, multiplied by
the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting “calendar year 2025” for “calendar year 2016” in subparagraph (A)(ii) thereof.
If any amount as adjusted under the preceding sentence is not a multiple of $10,000, such amount shall be rounded to the nearest multiple of $10,000.
For purposes of this subsection, with respect to a surviving spouse of a deceased spouse dying after
December 31, 2010
, the term “deceased spousal unused exclusion amount” means the lesser of—
the basic exclusion amount, or
the excess of—
the applicable exclusion amount of the last such deceased spouse of such surviving spouse, over
the amount with respect to which the tentative tax is determined under section 2001(b)(1) on the estate of such deceased spouse.
A deceased spousal unused exclusion amount may not be taken into account by a surviving spouse under paragraph (2) unless the executor of the estate of the deceased spouse files an estate tax return on which such amount is computed and makes an election on such return that such amount may be so taken into account. Such election, once made, shall be irrevocable. No election may be made under this subparagraph if such return is filed after the time prescribed by law (including extensions) for filing such return.
Notwithstanding any period of limitation in section 6501, after the time has expired under section 6501 within which a tax may be assessed under chapter 11 or 12 with respect to a deceased spousal unused exclusion amount, the Secretary may examine a return of the deceased spouse to make determinations with respect to such amount for purposes of carrying out this subsection.
The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out this subsection.
The amount of the credit allowed by subsection (a) shall not exceed the amount of the tax imposed by section 2001.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §20.2010-0 Table of contents
- Treas. Reg. §Treas. Reg. §20.2010-0(a) Surviving spouse's estate limited to DSUE amount of last deceased spouse.
- Treas. Reg. §Treas. Reg. §20.2010-0(b) Special rule in case of multiple deceased spouses and previously-applied DSUE amount.
- Treas. Reg. §Treas. Reg. §20.2010-0(c) Date DSUE amount taken into consideration by surviving spouse's estate.
- Treas. Reg. §Treas. Reg. §20.2010-0(d) Authority to examine returns of deceased spouses.
- Treas. Reg. §Treas. Reg. §20.2010-0(e) Availability of DSUE amount for estates of nonresidents who are not citizens.
- Treas. Reg. §Treas. Reg. §20.2010-0(f) Effective/applicability date.
- Treas. Reg. §Treas. Reg. §20.2010-1 Unified credit against estate tax; in general
- Treas. Reg. §Treas. Reg. §20.2010-1(a) General rule.
- Treas. Reg. §Treas. Reg. §20.2010-1(b) Special rule in case of certain gifts made before 1977.
- Treas. Reg. §Treas. Reg. §20.2010-1(c) Special rule in the case of a difference between the basic exclusion amount applicable to gifts and that applicable at the donor's date of death.
- Treas. Reg. §Treas. Reg. §20.2010-1(d) Credit limitation.
- Treas. Reg. §Treas. Reg. §20.2010-1(e) Explanation of terms.
- Treas. Reg. §Treas. Reg. §20.2010-1(f) Applicability dates—(1) In general.
- Treas. Reg. §Treas. Reg. §20.2010-1(i) §20.2010-1(i)
- Treas. Reg. §Treas. Reg. §20.2010-2 Portability provisions applicable to estate of a decedent survived by a spouse
- Treas. Reg. §Treas. Reg. §20.2010-2(a) Election required for portability.
- Treas. Reg. §Treas. Reg. §20.2010-2(b) Requirement for DSUE computation on estate tax return.
- Treas. Reg. §Treas. Reg. §20.2010-2(c) Computation of the DSUE amount—(1) General rule.
- Treas. Reg. §Treas. Reg. §20.2010-2(d) Authority to examine returns of decedent.
- Treas. Reg. §Treas. Reg. §20.2010-2(e) Effective/applicability date.
- Treas. Reg. §Treas. Reg. §20.2010-2(i) §20.2010-2(i)
- Treas. Reg. §Treas. Reg. §20.2010-3 Portability provisions applicable to the surviving spouse's estate
- Treas. Reg. §Treas. Reg. §20.2010-3(a) Surviving spouse's estate limited to DSUE amount of last deceased spouse—(1) In general.
- Treas. Reg. §Treas. Reg. §20.2010-3(b) Special rule in case of multiple deceased spouses and previously-applied DSUE amount—(1) In general.
26 Citing Cases
General Structure Section 2010 provides a “unified credit against estate tax,” which effectively reduces the value of the gross estate for the purpose of calculating the tax.
eceased spouse is an improper second examination within the meaning ofI.R.C. sec. 7605(b) because only the examined party can seek protection from a second examination under I.R.C. sec. 7605(b). H_ej , further, the applicable regulations relating to I.R.C. sec. 2010 do not prohibit R from examining the predeceased spouse's return. H_ejd, further, the effective date ofI.R.C. sec. 2010(c)(5)(B) does not preclude R from adjusting the DSUE amount by gifts given before Dec. 31, 2010, when the DSUE am
See § 2010.) The remaining unused amount of Levine’s GSTT exemption that was accounted for in creating the grandchildren’s subtrust was a little over $3 million. (All section references are to the Internal Revenue Code and regulations in effect at the relevant time, and all Rule references are to the Tax Court Rules of Practice and Procedure, unless we
Section 2010 allows an estate a credit (unified credit) that reduces its estate tax liability. Section 2002 requires the executor ofthe estate to pay the estate tax. Regardless ofthe source offunds the executor uses to pay the estate tax, however, an issue remains regarding which beneficiary's interest bears the financial burden ofthe tax. Often th
le taxation involved in this inconsistent treatment ofthat sum ofmoney is * * * clear [.]"). The same result obtains even ifMr. Backemeyer's estate did not actually owe any amount payable as estate tax through the operation ofthe unified credit, see sec. 2010, or the marital deduction for bequests to a surviving spouse, see sec. 2056, so long as his estate was subject to the estate tax regime. Furthermore, we note that the Supreme Court's approach in Bliss Dairy, 460 U.S. at 383 n.15, calls for
ssue presented under sec. 2044 and that we do not address in any detail are (1) that "[r]espondent's position contravenes the intent expressed in Grace's [Ms. Olsen's] estate plan [i.e., the GTO trust instrument] to utilize her Unified Credit [under sec. 2010] for the benefit ofher descendants", (2) that Mr. Olsen breached his fiduciary duties as trustee ofthe GTO trust, and (3) that the beneficiaries of that trust had claims against the estate because ofthose breaches thatthey did not (continue
Mrs. Elkins' will, her 50% community property interests:in the other 61 works ofart passed outright to decedent. Mr. Elkins decided, however, to disclaim a portion ofthose interests equal in value to the unused unified credit against estate tax, see sec. 2010, available to Mrs. Elkins' estate so that the disclaimed portion could pass to the Elkins children free ofestate tax. On the basis ofappraisals obtained bÿ Mrs. Elkins' estate, decedent disclaimed a 26.945% interest in each ofthe 61 works (
s. Elkins’ will, her 50% community property interests in the other 61 works of art passed outright to decedent. Mr. Elkins decided, however, to disclaim a portion of those interests equal in value to the unused unified credit against estate tax, see sec. 2010, available to Mrs. Elkins’ estate so that the disclaimed portion could pass to the Elkins children free of estate tax. On the basis of appraisals obtained by Mrs. Elkins’ estate, decedent disclaimed a 26.945% interest in each of the 61 work
In 1976 Congress repealed the exemption under section 2052 and enacted section 2010, which introduced a unified credit .
ctice and Procedure.) s Federal gift and estate-tax law allows a credit which a person can use either to reduce the tax on gifts made while the donor is alive (under sections 2505(a) and 2503(b) (2)) or against the estate tax imposed at death (under section 2010(c)). Thelma used the credit amount available during 2000, which was $25,000 higher than the credit available to her husband in 1999, when his (continued...) - 8 - techniques such as irrevocable life insurance trusts (ILITs), grantor-reta
Because the value of Edna’s gross estate exceeds the applicable exclusion amount under section 2010 in effect for 1998, $625,000, her estate was required to file a return within 9 months of her death.
2010; Manning et al., supra at 1-22. If decedent sought to minimize his estate taxes "down to the last dollar", he would have wanted to disclaim enough property to use fully the unified credit in Mrs. Chamberlain's estate. In contradiction to his own testimony, Dale testified that while he and decedent were reviewing Exhibit 5-E, "he [decedent
Each of the donors claimed nine $10,000 exclusions under section 2503(b), and each of the men claimed application of the unified credit under section 2010 for the excess amount over the allowable exclusion.
Each of the donors claimed nine $10,000 exclusions under section 2503(b), and each of the men claimed application of the unified credit under section 2010 for the excess amount over the allowable exclusion.
Each of the donors claimed nine $10,000 exclusions under section 2503(b), and each of the men claimed application of the unified credit under section 2010 for the excess amount over the allowable exclusion.
Each of the donors claimed nine $10,000 exclusions under section 2503(b), and each of the men claimed application of the unified credit under section 2010 for the excess amount over the allowable exclusion.
Each of the donors claimed nine $10,000 exclusions under section 2503(b), and each of the men claimed application of the unified credit under section 2010 for the excess amount over the allowable exclusion.
resident of the United States at the time of his death, petitioner is subject to the Federal estate tax imposed on the estates of U.S. residents under section 20012 and is entitled to the unified estate and gift tax credit of $192,800 allowed under section 2010. If decedent was a nonresident at the time of his death, petitioner is subject to the Federal estate tax imposed on the estates of noncitizen nonresidents under section 2101 and is entitled to a unified credit of $13,000 under section 210
They used the annual per donee exclusions from gifts (section 2503), and the gift splitting provisions (section 2513) in each of those years, and the unified credit (section 2010) in 1983-86.