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The Alabama EST-1 form serves as an essential application for obtaining an estate tax waiver from the Alabama Department of Revenue. This form must be completed in triplicate and submitted to the Individual and Corporate Tax Division, Estate Tax Section. It requires detailed information about the decedent, including their name, date of death, legal residence, and Social Security number. Additionally, applicants must indicate whether a Federal Estate Tax Return (Form 706) has been filed and provide the total gross estate value. The form also requests contact information for a representative who can provide further details if needed. Line eight requires a description of the assets within the estate intended for transfer, with specific instructions on how to report stocks, bonds, annuities, life insurance policies, and real property. Finally, the form must include the name and address of the executor or administrator to whom the waiver should be mailed. Following the completion of the form, all copies must be sent to the designated address, ensuring that the original and one copy will be returned upon approval. Proper adherence to these guidelines is crucial for a successful application process.
Misconceptions
Misconception 1: The EST-1 form is only for individuals.
This form is applicable to both individuals and corporations. It is designed to facilitate the application for an estate tax waiver, regardless of whether the decedent was an individual or a corporate entity. Understanding this can help ensure that all relevant parties are aware of their obligations.
Misconception 2: Only one copy of the EST-1 form needs to be submitted.
In reality, the form must be completed in triplicate. All three copies should be mailed to the Alabama Department of Revenue. This requirement ensures that the department has sufficient documentation to process the waiver and maintain accurate records.
Misconception 3: Filing the EST-1 form guarantees that the waiver will be approved.
Submitting the EST-1 form does not automatically guarantee approval. The waiver is subject to review by the Alabama Department of Revenue. They will assess the information provided and determine whether the waiver can be granted based on the estate's eligibility and compliance with state laws.
Misconception 4: The form can be submitted without completing all requested information.
It is essential to complete all sections of the EST-1 form before submission. Incomplete applications may lead to delays or denials. Each line, particularly those detailing the assets in the estate, must be filled out accurately to facilitate a smooth processing experience.
Example - Alabama Est 1 Form
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FORM |
AlAbAmA DepArtment of revenue |
Complete in Triplicate |
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InDIvIDuAl AnD CorporAte tAx DIvIsIon, estAte tAx seCtIon |
and Mail All Copies |
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is acceptable) |
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Application for estate tax Waiver |
(Carbon or Photocopy |
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6/14 |
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1. |
Name of decedent (First) |
(Initial) |
(Last name) |
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2. Date of death |
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3. |
Decedent’s legal residence at time of death |
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4. Decedent’s Social Security Number |
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5. |
Has Federal Estate Tax Return (Form 706) been filed? |
6. Total gross estate |
(Give the total gross estate value as reported on |
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Yes No |
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$ |
Form 706. If Form 706 has not been filed, show |
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approximate value.) |
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7. |
Person to contact for |
Name |
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Telephone No. ( |
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additional information: |
Address |
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8.Describe the assets in the estate which are to be transferred. (If additional space is needed, attach additional sheets.) See instructions on reverse side.
No. shares stock or |
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face value of bonds |
Name of Company |
Description |
ABOVE INFORMATION MUST BE COMPLETED ON EACH APPLICATION BEFORE WAIVER CAN BE ISSUED
A SEPARATE SET OF WAIVERS MUST BE COMPLETED FOR EACH COMPANY
Under penalties of perjury, I declare that I have examined this waiver and, to the best of my knowledge and belief, it is true, correct, and complete.
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ADMINISTRATOR’S OR AGENT’S SIGNATURE |
DATE |
9.NAME AND ADDRESS TO WHICH WAIVER SHOULD BE MAILED (Executor / Administrator)
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Alabama Department of Revenue
Individual and Corporate Tax Division
Estate Tax Section
P.O. Box 327440
Montgomery, AL
ESTATE TAX WAIVER
FOR OFFICIAL USE ONLY
This Estate Tax Waiver is hereby approved by the Alabama Department of Revenue.
Signed ______________________________________________
Date ________________________________________________
Valid only when signed by an authorized agent of
the Alabama Department of Revenue.
Instructions for Completing form
this application must be completed in triplicate and all 3 copies mailed to the Alabama Department of revenue, Individual and Corporate tax Division, estate tax section, p.o. box 327440, montgomery, Al
LINES 1 through 7. Complete lines 1 through 7 of the application giving the information requested.
LINE 8. Describe the assets in the estate which are to be transferred. examples of the information required on the different assets is described below.
(A)Stocks and Bonds. (1) number of shares, (2) name of stock or bond, (3) type or Class (preferred, common, etc.), (4) for jointly held stocks or bonds, list name of
Example:
410 Shares – ABC Corporation – Common
John R. Doe and Mary Doe with right of survivorship
(B)Annuity Contract or Life Insurance Policy. (1) name of Company, (2) Commuted value of Annuity contract or life insurance policy as of decedent’s date of death (or schedule of settlement), (3) name of the beneficiary, (4) type of Annuity (retirement, single
purchase, etc.) or life insurance policy (whole life or term), (5) Contract number or policy number.
Examples:
ABC Insurance Company – Retirement Annuity |
Contract #12345 |
$3,840.00 Beneficiary Mary Doe |
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XYZ Insurance Company – Life Insurance |
Policy #67890 |
$5,850 Beneficiary John Smith |
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(C)Real Property. (1) legal description of property or mineral rights as appears on deed or in contract, (2) for jointly held property, list name of
Example:
Montgomery County, Lot 1, according to the map of John P. Jones’
Survey, as recorded in Map Book 25 at page 8 in the office of the
Judge of Probate, Montgomery, Alabama, Jointly held property,
LINE 9. enter the name and address to which the waiver should be mailed.
Mail The Original And 2 Copies
Of This Application To:
Alabama Department of Revenue
Individual and Corporate Tax Division
Estate Tax Section
P.O. Box 327440
Montgomery, AL
If you have any questions concerning the completion and/or submission of this application, please contact the estate tax section of the Individual and Corporate tax Division at (334)
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Similar forms
The Alabama Form EST-1 is similar to the IRS Form 706, which is the United States Estate (and Generation-Skipping Transfer) Tax Return. Both documents serve the purpose of reporting the value of a decedent's estate for tax purposes. Form 706 is required for federal estate tax calculations and must be filed if the gross estate exceeds a certain threshold. Like the EST-1, it requires detailed information about the decedent, including their date of death, legal residence, and the value of the estate. The information collected in both forms is crucial for determining any tax liabilities and ensuring compliance with tax laws.
Another document comparable to the Alabama EST-1 is the IRS Form 706-NA, the United States Estate (and Generation-Skipping Transfer) Tax Return for Nonresident Aliens. This form is used by nonresident aliens to report their estate tax obligations in the U.S. Similar to the EST-1, it gathers information about the decedent's assets and liabilities at the time of death. Both forms require a detailed breakdown of the estate’s value and assets, ensuring that the appropriate taxes are assessed based on the estate's worth.
The Alabama Form EST-1 also shares similarities with the state-specific estate tax forms used in other states, such as the New York State Estate Tax Return (Form ET-706). Like the EST-1, the New York form must be completed to determine the estate tax owed to the state. Both forms require information about the decedent, including their assets, liabilities, and other pertinent details. The aim of these documents is to facilitate the proper assessment of estate taxes at the state level, ensuring compliance with local laws.
For individuals dealing with vehicle transactions, understanding the significance of a comprehensive Motor Vehicle Bill of Sale document is vital. This form not only acts as proof of sale but also details essential information such as the vehicle's identification and sale terms. For further guidance, you can refer to this necessary Motor Vehicle Bill of Sale document.
Additionally, the EST-1 is akin to the California Estate Tax Return, which, although currently not in effect, outlines the requirements for reporting an estate's value for tax purposes. Both forms emphasize the importance of accurately reporting the gross estate and provide a framework for the executor or administrator to disclose relevant financial information. The California form would have required similar details, such as the decedent's legal residence and asset descriptions, mirroring the structure of the Alabama EST-1.
Lastly, the Alabama EST-1 is similar to the Uniform Probate Code (UPC) forms used in various states for probate proceedings. These forms, while primarily focused on the administration of the estate, often require information about the decedent's assets and debts. They help ensure that the estate is settled according to state laws. Both the EST-1 and UPC forms facilitate the process of transferring assets and settling debts, highlighting the importance of accurate reporting in estate management.
Common mistakes
Filling out the Alabama EST-1 form can be straightforward, but several common mistakes can lead to delays or issues in processing. One frequent error is incomplete information. Lines 1 through 7 must be filled out completely. Missing details, such as the decedent's Social Security Number or the date of death, can result in the application being returned.
Another mistake involves not providing accurate asset descriptions. Line 8 requires a clear description of the assets in the estate. Failing to include essential details, such as the number of shares for stocks or the legal description for real property, can cause confusion and delay the waiver process.
Some applicants also overlook the requirement to submit three copies of the form. The instructions specify that the application must be completed in triplicate. Sending only one or two copies can lead to processing issues, as the Alabama Department of Revenue needs all three for their records.
Additionally, many people forget to include the contact information for someone who can provide additional details. Line 7 asks for a name and phone number. Without this information, it may be difficult for the department to reach someone if they have questions about the application.
Another common oversight is neglecting to sign the form. The declaration at the bottom requires the administrator’s or agent’s signature. An unsigned form is not valid and will be rejected, causing further delays.
Some applicants mistakenly assume that they can submit the form without checking for accuracy. Errors in calculations or typos can lead to complications. It’s crucial to double-check all entries before submission to ensure everything is correct.
Moreover, applicants may not provide separate sets of waivers for each company involved. If there are multiple companies listed in the estate, a separate waiver application must be completed for each one. Failing to do so can result in incomplete processing.
Lastly, individuals often neglect to read the instructions thoroughly. The instructions on the reverse side of the form contain essential details about how to fill it out correctly. Ignoring these guidelines can lead to mistakes that could have been easily avoided.