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In the wake of a loved one's passing, individuals in Alabama may find themselves navigating the complexities of estate settlement, a process that includes addressing the responsibilities concerning the estate's tax liabilities. Among the requisite forms is the Alabama EST-1, an essential document devised by the Alabama Department of Revenue to facilitate the waiver of estate taxes for estates within its jurisdiction. Crafted to be completed in triplicate, this form serves a dual purpose: it is an application for an estate tax waiver and a communicative bridge between the estate's representatives and the Alabama Department of Revenue’s Individual and Corporate Tax Division, Estate Tax Section. The EST-1 form requires comprehensive details about the decedent, including their name, legal residence at the time of death, social security number, and the total gross value of the estate, drawing information directly from, or in the absence of, the Federal Estate Tax Return (Form 706). Additionally, it prompts the applicant to describe the assets within the estate slated for transfer, providing a structured method for the state to assess and process estate tax waivers accurately. This task, mandated to be completed thoroughly before consideration for a waiver can proceed, underscores the importance of accuracy and completeness in fulfilling state tax obligations post-mortem. Furthermore, instructions included with the form aim to assist applicants in navigating through the requirements, ensuring that each waiver request is properly documented and submitted for approval, a step finalized only with the authorized signature from an agent of the Alabama Department of Revenue.

Alabama Est 1 Example

 

FORM

AlAbAmA DepArtment of revenue

Complete in Triplicate

EST-1

InDIvIDuAl AnD CorporAte tAx DIvIsIon, estAte tAx seCtIon

and Mail All Copies

is acceptable)

 

 

Application for estate tax Waiver

(Carbon or Photocopy

 

6/14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.

Name of decedent (First)

(Initial)

(Last name)

 

2. Date of death

 

 

 

 

 

 

3.

Decedent’s legal residence at time of death

 

 

4. Decedent’s Social Security Number

 

 

 

 

 

5.

Has Federal Estate Tax Return (Form 706) been filed?

6. Total gross estate

(Give the total gross estate value as reported on

 

Yes No

 

$

Form 706. If Form 706 has not been filed, show

 

 

approximate value.)

 

7.

Person to contact for

Name

 

 

Telephone No. (

)

 

additional information:

Address

 

 

 

 

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

 

 

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.

▼

ADMINISTRATOR’S OR AGENT’S SIGNATURE

DATE

9.NAME AND ADDRESS TO WHICH WAIVER SHOULD BE MAILED (Executor / Administrator)

▼

Alabama Department of Revenue

Individual and Corporate Tax Division

Estate Tax Section

P.O. Box 327440

Montgomery, AL 36132-7440

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 est-1

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 36132-7440. A separate set of waivers must be submitted for each company. If approved, the original and one copy will be returned to you.

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 Co-tenant and indicate if held with right of survivorship.

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

 

 

 

 

 

XYZ Insurance Company – Life Insurance

Policy #67890

$5,850 Beneficiary John Smith

 

(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 Co-tenant.

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,

Co-Tenant Mary R. Doe.

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 36132-7440

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) 242-1033.

▼ PDF File

Form Specs

Fact Detail
Form Name EST-1 Application For Estate Tax Waiver
Governing Body Alabama Department of Revenue, Individual and Corporate Tax Division, Estate Tax Section
Version Date June 1999
Requirement for Completion Must be completed in triplicate
Submission Detail All three copies must be mailed to the specified address
Special Requirement A separate set of waivers must be completed for each company
Document Authentication Waiver is valid only when signed by an authorized agent of the Alabama Department of Revenue
Key Sections Decedent's Information, Asset Description, Contact Information, Waiver Mailing Address
Address for Mailing Application P. O. Box 327440, Montgomery, AL 36132-7440

Detailed Guide for Writing Alabama Est 1

Filling out the Alabama EST-1 form is a straightforward process, but it requires attention to detail. This document is necessary for those seeking an estate tax waiver from the Alabama Department of Revenue. Understanding which sections to complete and how to describe assets accurately ensures that the process is handled smoothly. Below are the comprehensive steps to guide you through each part of the form.

  1. Start by entering the name of the decedent, including the first name, initial, and last name, in the space provided.
  2. Record the date of death of the decedent.
  3. Specify the decedent’s legal residence at the time of death.
  4. Fill in the decedent’s Social Security Number (SSN).
  5. Answer whether a Federal Estate Tax Return (Form 706) has been filed by marking "Yes" or "No."
  6. Under total gross estate, input the total value as reported on Form 706. If Form 706 was not filed, provide the approximate value of the gross estate.
  7. Provide the contact information of the person to be contacted for additional details, including their name, telephone number, and address.
  8. Under the section asking to describe the assets in the estate which are to be transferred, ensure to give detailed information such as number of shares or face value of bonds, name of the company, and description of the asset. If the space is insufficient, attach additional sheets as necessary.
  9. For stocks and bonds, list the number of shares, name of the stock or bond, type or class (preferred, common, etc.), and if jointly held, list the name of the Co-Tenant and indicate if held with the right of survivorship.
  10. For annuity contracts or life insurance policies, provide the name of the company, commuted value as of the decedent’s death, name of the beneficiary, type of annuity or insurance, and the contract or policy number.
  11. For real property, include a legal description as appears on the deed or in contract and, if jointly held, list the name of the Co-Tenant.
  12. Enter the name and address to which the waiver should be mailed in the appropriate section.
  13. Finally, the administrator’s or agent’s signature and date are required at the bottom of the form to certify the information provided is true, correct, and complete.
  14. Remember to mail the original and two copies of the completed application to the address provided: Alabama Department of Revenue Individual and Corporate Tax Division, Estate Tax Section, P. O. Box 327440, Montgomery, AL 36132-7440.

If you encounter any questions while filling out the EST-1 form or need further clarification on the process, you are encouraged to contact the Estate Tax Section of the Individual and Corporate Tax Division at the provided phone number. Ensuring accuracy and completeness of the provided information will facilitate a smoother review and processing of your application.

Common Questions

What is the Alabama EST-1 form used for?

The Alabama EST-1 form is an application for an Estate Tax Waiver. It is used by executors or administrators of estates to request a waiver for estate taxes. This waiver allows for the transfer of assets within an estate without having to settle the full tax obligations upfront.

Who needs to complete the EST-1 form?

This form must be completed by the executor or administrator of an estate. If you are responsible for handling the distribution of assets from someone who has passed away, and their legal residence was in Alabama at the time of death, you will need to fill out this form.

Where should the completed EST-1 form be mailed?

The completed EST-1 form, in triplicate, should be mailed to the Alabama Department of Revenue, Individual and Corporate Tax Division, Estate Tax Section, P. O. Box 327440, Montgomery, AL 36132-7440.

Do I need to file a Federal Estate Tax Return to complete the EST-1 form?

Yes, question number 5 on the EST-1 form asks whether a Federal Estate Tax Return (Form 706) has been filed. The total gross estate value reported on Form 706 is required information. If Form 706 has not been filed, an approximate value of the total gross estate must be provided.

How do I describe the assets in the estate on the EST-1 form?

Line 8 of the form requires a detailed description of the assets within the estate that are to be transferred. For stocks and bonds, include the number of shares, name of the stock or bond, and type or class. For annuity contracts or life insurance policies, provide the name of the company, the commuted value or settlement schedule, beneficiary name, and contract or policy number. For real property, include a legal description as found on deeds or contracts.

Can I submit a photocopy of the EST-1 form?

Yes, the form specifies that a carbon or photocopy is acceptable. You need to ensure that the form is filled out completely and mailed in triplicate.

What happens after the EST-1 form is submitted?

Once the form is reviewed and if approved, the original and one copy of the Estate Tax Waiver will be returned to the submitter. This waiver is necessary to proceed with the transfer of estate assets according to the decedent’s wishes without immediate tax penalties.

Who do I contact if I have questions about completing the EST-1 form?

If you have any questions regarding the completion or submission of the EST-1 form, you should contact the Estate Tax Section of the Individual and Corporate Tax Division at (334) 242-1000.

Is a separate EST-1 form needed for each company with assets in the estate?

Yes, if the estate includes assets from different companies, a separate set of waivers (and thus separate EST-1 forms) must be completed for each company involved.

Common mistakes

When filling out the Alabama EST-1 form, which is an application for an estate tax waiver, individuals can easily overlook several key considerations. This form is crucial for the proper administration of an estate, ensuring that assets are transferred legally and efficiently. However, common errors often occur during its completion. Understanding these mistakes can prevent delays and issues during the estate settlement process.

Firstly, omitting the decedent's legal name and not providing their Social Security Number are frequent oversights. The full legal name, including any middle initials, and the Social Security Number are essential for the identification of the estate. Failing to include these details can lead to unnecessary confusion and potential legal challenges.

Secondly, many individuals mistakenly believe that the date of death and the decedent’s legal residence at the time of death are interchangeable or insignificant details. The exact date of death and the precise legal residence are crucial for tax implications and legal jurisdiction over the estate. Incorrect or vague information in these sections can complicate the waiver process.

Thirdly, the question regarding the filing of the Federal Estate Tax Return (Form 706) is often neglected or misunderstood. Answering this question accurately is vital because it affects how the estate is processed. Additionally, when reporting the total gross estate, applicants sometimes guess the value instead of providing the amount declared on Form 706 or attaching an approximate valuation if Form 706 has not been filed, which can lead to inaccuracies.

Furthermore, an area often incorrectly filled out is the description of assets to be transferred. Detailed descriptions of the assets, including stocks, bonds, real estate, and insurance policies, must be thoroughly documented. Omitting specific details, such as the number of shares, the name of the company, or the property's legal description, can invalidate the waiver request.

  1. Omitting the decedent's full legal name and Social Security Number.
  2. Providing incorrect or vague dates of death and legal residences.
  3. Misunderstanding or neglecting the question about the filing of Form 706.
  4. Guessing or inaccurately reporting the total gross estate value.
  5. Failing to provide detailed descriptions of the assets to be transferred.

Beyond these individual points, another common error involves the contact information section. Not specifying a reliable contact person for additional information or providing incorrect contact details can lead to delays or the inability of the Alabama Department of Revenue to clarify doubts or request additional documentation. Additionally, the name and address for the mailing of the waiver should be reviewed for accuracy to ensure the waiver reaches the right hands without delay.

In summary, while the Alabama EST-1 form might seem straightforward, careful attention to detail is necessary to prevent common pitfalls. Accurately completing this form not only facilitates a smoother estate administration process but also ensures compliance with Alabama’s legal requirements for estate tax waivers.

Documents used along the form

When dealing with estate matters in Alabama, particularly after a loved one has passed away, the Alabama EST-1 form serves as a critical document for tax purposes. This form is used to apply for an estate tax waiver, which is essential for the legal transfer of assets from the decedent to their beneficiaries. However, the EST-1 form is just one piece of the puzzle in the broader estate settlement process. Several other forms and documents are often used in conjunction with the EST-1 form to ensure compliance with both state and federal regulations and to facilitate a smooth transition of assets. Understanding these documents can provide clarity and ease the complexity of estate settlement.

  • Form 706 (Federal Estate Tax Return): This is often required for estates that exceed a certain value threshold as determined by the IRS. It details the decedent’s gross estate and calculates the estate's tax liability. If the decedent's estate requires the filing of Form 706, information provided in it will help in completing the Alabama EST-1 form.
  • Death Certificate: This official document confirms the death of the decedent. It is essential for legal and financial processes following a death, including the administration of the estate. Copies of the death certificate are often required by financial institutions and other entities when transferring ownership of assets.
  • Will and Testament: If the decedent left a will, it would guide the distribution of their assets according to their wishes. The will names the executor or personal representative responsible for administrating the estate, including the duty to file necessary tax forms.
  • Letters of Administration or Letters Testament:** These are official court documents that grant the executor or personal representative the authority to act on behalf of the decedent's estate. This authority includes accessing financial accounts, transferring titles, and fulfilling the wishes outlined in the will, if applicable.
  • Probate Court Documents: Depending on the estate's complexity and whether the decedent had a will, various documents filed with the probate court might be necessary. These can include petitions for probate, inventories of the estate’s assets, and accountings of the estate’s financial activities.
  • Trust Documentation (if applicable): For estates involving trusts, relevant documentation detailing the trust's terms, trustees, and beneficiaries is crucial. Trusts often bypass the probate process, but trustees may still need to provide trust documents when dealing with certain assets or for tax purposes.

Managing the estate of a departed loved one can be a demanding and emotional process. By familiarizing oneself with these essential forms and documents, those responsible for administrating an estate can navigate the legal and financial steps more confidently. While the Alabama EST-1 form facilitates the transfer of assets by waiving the state's estate tax, the complete settlement of an estate usually requires a comprehensive understanding and submission of several additional documents. It's advisable to consult with a legal or tax professional to ensure all obligations are met and to help guide you through this challenging time.

Similar forms

The Alabama EST-1 form, designed for the application of an Estate Tax Waiver, bears resemblance to other legal documents utilized in the estate planning and estate administration processes. These documents include the Federal Estate Tax Return (Form 706) and the Application for Federal Transfer Certificate (Form 5173), each of which serves a distinct yet complementary role in managing the fiscal responsibilities of an estate. Understanding these similarities and differences equips executors and administrators with the knowledge necessary to navigate the complexities of estate management efficiently.

The Federal Estate Tax Return (Form 706) is one of the documents closely related to the Alabama EST-1 form. Similar to the EST-1 form, Form 706 requires detailed information about the decedent’s estate, including the value of the estate's total assets and liabilities. Where the EST-1 form primarily facilitates the process for obtaining a tax waiver in Alabama, Form 706 is used nationwide to calculate the estate’s tax liability based on the total value of the estate at the time of the decedent’s death. Both documents necessitate a comprehensive understanding of the estate's assets, yet Form 706 goes a step further by directly influencing the calculation of taxes owed to the federal government.

Another document related to the Alabama EST-1 form is the Application for Federal Transfer Certificate (Form 5173). While the EST-1 form pertains specifically to the state of Alabama’s process for waiving estate tax requirements under certain conditions, Form 5173 is used by the IRS to allow the transfer of U.S.-situated assets to the heirs of a nonresident alien’s estate. Although their applications differ — with one facilitating asset transfer within Alabama and the other focusing on federal authorization for asset distribution — both require detailed declarations about the decedent’s assets. These documents ensure compliance with respective tax laws and streamline the asset distribution process by validating the legal transfer of the specified assets.

Dos and Don'ts

When dealing with the Alabama EST-1 form, an Application For Estate Tax Waiver, it's essential to maneuver through the document with care. This is not only to ensure its acceptance by the Alabama Department of Revenue but also to avoid any potential delays in processing. Here are some dos and don'ts that could guide you through the completion process.

  • Do make sure to fill out the form in triplicate as required. This means you should have three copies of the complete form, ensuring that each copy is legible and accurate.
  • Do provide detailed descriptions of the assets to be transferred, as specified in Line 8 of the form. This includes listing the number of shares or face value of bonds, the name of the company, and the type or class of each asset.
  • Do carefully enter the decedent’s personal information, including their full name, social security number, and legal residence at the time of death, ensuring that every detail matches their legal documents.
  • Do indicate whether a Federal Estate Tax Return (Form 706) has been filed by marking the appropriate yes or no box. If yes, include the total gross estate value as reported on Form 706.
  • Don't leave any sections blank. If a question does not apply or the information is unknown, note it appropriately. Incomplete forms may be returned or cause unnecessary delays.
  • Don't forget to sign and date the form. The administrator’s or agent’s signature is critical to validate the form. Unsigned forms will not be processed.
  • Don't overlook the need to attach additional sheets if you run out of space when describing assets. Clearly label these sheets with the decedent's name and attach them securely to the form.
  • Don't hesitate to contact the Alabama Department of Revenue's Estate Tax Section if you have questions or need clarification on filling out the form. It's better to ask for guidance than to submit an incorrect or incomplete form.

By following these guidelines, you’ll be better equipped to complete the Alabama EST-1 form accurately and efficiently. Remember, accuracy and attention to detail are crucial to a smooth process, ensuring that the estate matters are handled appropriately and in a timely manner.

Misconceptions

When dealing with the Alabama EST-1 Form, also known as the Application For Estate Tax Waiver, many misconceptions can arise. Here's a look at some common misunderstandings and the facts behind them:

  • Misconception 1: The EST-1 Form is the same as filing for federal estate taxes.

    This is incorrect. The EST-1 Form is specific to Alabama and is used to request a waiver from the state's estate tax. Federal estate taxes, on the other hand, are filed separately using Form 706. While related, these two processes serve different functions and are handled by different tax authorities.

  • Misconception 2: You only need to complete one EST-1 form for all assets in the estate.

    Actually, a separate set of waivers must be completed for each company when you're transferring stocks or bonds. This requirement ensures that the Alabama Department of Revenue can accurately assess and process waivers for each asset within an estate, which might have varied tax considerations.

  • Misconception 3: The EST-1 form is only for those who have a will.

    Whether the decedent had a will or not, the EST-1 form may still be required. The form is part of the process for transferring the decedent's assets and is not dependent on the presence of a will. It applies to estates that need to transfer assets and may be subject to estate tax considerations in Alabama.

  • Misconception 4: Completing the EST-1 form means you don't have to pay estate taxes.

    Completing and submitting the EST-1 form is a request for a tax waiver, not necessarily a waiver of all taxes owed by the estate. The Alabama Department of Revenue reviews each application to determine if the estate is exempt from taxes or if taxes are still owed. The form is part of the administrative process, not a determination of tax liability.

  • Misconception 5: Electronic submissions of the EST-1 form are acceptable.

    The instructions clearly state that the application must be completed in triplicate and mailed to the Alabama Department of Revenue. As of the last update, electronic submissions are not mentioned as an acceptable option. This highlights the importance of following the specific submission guidelines provided by the Alabama Department of Revenue to ensure proper processing.

In conclusion, understanding the specifics of the Alabama EST-1 form is crucial for anyone managing an estate in Alabama. Clearing up common misconceptions can help ensure that the estate tax waiver process is handled correctly and efficiently.

Key takeaways

Understanding the intricacies of the Alabama EST-1 form is crucial for efficiently handling estate matters. Here’s a digestible breakdown of the key points to remember:

  • Before a waiver can be issued, all sections of the EST-1 form must be thoroughly completed. This ensures that the Alabama Department of Revenue has all the necessary information to process the application.
  • The application requires completion in triplicate, meaning three copies of the form need to be submitted. This allows for proper processing and record-keeping by the Alabama Department of Revenue.
  • Applicants must provide a detailed description of the estate's assets that are to be transferred. This can include, but is not limited to, stocks, bonds, real estate, and life insurance policies. Detailed descriptions ensure accurate assessment and processing.
  • For assets like stocks and bonds, specific details such as the number of shares, type or class of the stock or bond, and information regarding joint ownership, if applicable, are required.
  • When listing annuity contracts or life insurance policies, the form requires information like the name of the company, commuted value as of the decedent’s date of death, beneficiary name(s), and the type of policy or contract.
  • Description of real property must include the legal description as it appears on the deed or contract. For jointly held property, the co-tenant's name needs to be listed.
  • If the Federal Estate Tax Return (Form 706) has already been filed, it’s necessary to report the total gross estate value as stated on that form. If Form 706 has not been filed, an approximate value of the total gross estate must be provided.
  • Finally, applicants must specify where the estate tax waiver should be sent by providing a name and address for mailing the waiver. Knowing where the waiver will be sent helps in tracking its progress and ensuring it reaches the right hands.

By paying close attention to these guidelines, applicants can navigate the process of requesting an Estate Tax Waiver in Alabama with more confidence and efficiency. Remember, careful and accurate completion of all required information expedites the processing time and avoids unnecessary delays.

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