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An estate tax exemption is required in some US states as proof that estate taxes have been paid. It may be required depending on state laws and the location of the deceased’s assets. The waiver form includes personal and account information and must be submitted for processing before frozen funds can be released. Once approved, the state will issue one or more tax exemptions for specific accounts.
An estate tax exemption is mandatory in some jurisdictions in the United States. The document is used in estate matters and serves as proof that any required estate taxes have been paid by the beneficiaries of the deceased. In states where the document is required, the Department of Revenue, the state comptroller, or the Tax Department is responsible for issuing the document.
As of spring 2011, the District of Columbia and 34 states do not require the preparation of an estate tax waiver. You may still need to pay probate taxes in those jurisdictions, depending on applicable state laws. In some other parts of the United States, the tax exemption is used only in cases where the deceased died before a set date or when there is no surviving spouse.
The applicable law governing the need to obtain an estate tax exemption depends on where the deceased resided at the time of his or her death. The document may be requested when the assets transferred to a beneficiary are shares. In some cases, the law on applying for an inheritance tax exemption is determined by the location of the company that issued the shares.
If you need to file an estate tax exemption, you or a representative acting on your behalf should request a copy of the form from the appropriate government agency. Forms may also be available online from the government office website for download.
In some states, a portion of the deceased’s bank account is transferred to the estate account and the remaining funds are frozen until the estate taxes are paid. The form must be completed completely and submitted to the agency for processing before frozen funds will be released.
The waiver form includes the deceased’s name, Social Security number, date of death, and last address. It also lists account information for the deceased, including the account balance as of the date of death. The document also contains the names and contact details of the beneficiaries.
Once an estate tax exemption has been filed, it is reviewed to determine that the information is in order and that the correct amount of tax has been paid. If the information on the form is true and correct, the state will issue one or more tax exemptions. Each waiver will apply to a specific bank or investment account. The executor asks the bank to release the frozen funds from the estate.
