When to File: How soon is too early to file an estate tax return?
(April 2002) As a general rule, the estate tax return in a taxable estate should not be filed prior to the expiration of the 6-month alternate valuation date election under Code ยง2032, which can reduce the estate tax from what it would otherwise be using the date of death value. On the death of the first spouse, particularly in the situation of a QTIP Trust, careful consideration should be given to always obtaining an extension of time to file and pay estate tax, and then filing close to the 9-month period following death, but no later than the time allowed under a proper extension request. A QTIP election made too early, and irrevocably, can cause loss of important tax benefits. See, Schiller, Don’t QTIP Too Soon, published by BNA, Estate Planning, Gift and Trust Journal (Nov. 2001).
