I know there's a "simplified" method to filing a Form 706 solely to elect DSUE - but can some version of that be used to obtain a Federal Transfer Certificate where the estate value is WELL BELOW the exemption amount of $12 million?
US citizen couple, living outside the US. One of them dies and surviving spouse is the beneficiary of the deceased spouse's IRA and some other assets, both in the US and outside the US. There were no taxable gifts made during the deceased's lifetime.
Most of the assets are easily valued - IRA, mutual fund account, bank accounts, certificates of deposit, joint and survivor pensions (spouse has letters from the pension plans regarding the present value of the pension as of the date of death).
In the foreign country, there is a jointly owned house and household goods, neither of which has to be listed at market value for the foreign probate. They use the notional value which is about 1/10 of the market value of this house.
We expect that the house and contents (only half of which is in the estate) has a value of approximately $250K, so only $125K is part of the estate. Does the estate need to provide a full US style appraisal of the house and household goods? The house would have to be worth over $10 million (which it clearly is not) for there to be any estate tax consequences. It's not like if the house is actually worth $3 million but we say $200K we're going to be paying less in estate tax as even a $5 million estate would have $0 estate tax.
I know that the Special Rule for Form 706 relaxes the need for a full appraisal. Would that apply to the request for a Federal Transfer Certificate as well?
Any help or insight would be greatly appreciated!
