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Form 706: federal estate and GST tax return

Form 706 is the federal estate tax return, also used for generation-skipping transfer tax on direct skips, and it is filed by the executor after a death.

What Form 706 calculates

Form 706 calculates federal estate tax and generation-skipping transfer tax on direct skips.

Estate tax applies to the taxable estate as a whole. Its calculation does not depend solely on the portion a particular beneficiary receives.

Which estates the instructions cover

The instructions identify Form 706 as the return for estates of people who were U.S. citizens or U.S. residents at death. Their filing test combines the gross estate's value at death with the adjusted taxable gifts and specific exemption specified in the instructions, then applies the stated monetary threshold, which is $15,000,000 for decedents dying in 2026.[2]

A separate filing category applies when the executor elects to transfer the deceased spousal unused exclusion amount, or DSUE, to a surviving spouse. The instructions apply that category regardless of estate size.[2]

The instructions also contain a territorial citizenship qualification. For a decedent who was a U.S. citizen and territory resident, citizenship arising only through territorial connections points to Form 706-NA. Citizenship independent of those connections points to Form 706.[2]

Definitions used in the instructions

The gross estate includes property interests outside the United States. The instructions define its starting scope as all property in which the decedent held an interest, then identify further categories, including certain lifetime transfers and life insurance proceeds.[2]

For estate tax purposes, residence means having a U.S. domicile at death. A person acquires a domicile by living in a place, even briefly, with no definite present intention of later moving elsewhere.[2]

The executor definition includes a personal representative or administrator. When no executor is appointed, qualified, and acting in the United States, the instructions extend that definition to people with actual or constructive possession of the decedent's property.[2]

Information and schedules requested

Part I requests identifying information for the decedent and executor. The instructions call for the decedent's own Social Security number and domicile address, plus the executor's taxpayer identification number and telephone number. An attached statement supplies identifying and contact details for other executors.[2]

The property schedules separate information by asset type. Schedule A addresses real estate, Schedule B stocks and bonds, and Schedule C mortgages, notes, and cash. Schedule D requests every policy on the decedent's life, including insurance outside the gross estate.[1]

Attachments described by the instructions

The instructions require a death certificate with the return. For a U.S. citizen or resident who left a valid will, they also request a certified copy of that will. If certification cannot be obtained, they permit a copy accompanied by an explanation.[2]

Other supporting documents depend on the estate's circumstances. The examples include Form 712 for life insurance, Form 709 for gift tax reporting, Form 706-CE for foreign death tax payments, and instruments governing trusts or powers of appointment.[2]

Filing timing and Form 4768

The instructions set the Form 706 filing period at nine months after death. They identify Form 4768 as the application for an automatic six-month filing extension when the return cannot be filed by its due date.[2]

Estate and GST tax payments also have a nine-month deadline after death. Form 4768 is also used to request an extension of time to pay estate and GST tax.[2]

Questions and answers

Does Form 706 cover property outside the United States?

The gross estate definition expressly includes property outside the United States. It starts with property in which the decedent had an interest.[2]

How does Form 706 relate to Form 706-NA?

The instructions assign Form 706 to estates of U.S. citizens or residents at death, subject to their territorial citizenship rules. They assign Form 706-NA to estates of people who were neither U.S. citizens nor U.S. residents at death.[2]

Is Form 8971 filed with Form 706?

Form 8971 is a separate filing for estates subject to consistent basis reporting. That reporting concerns estate tax values reported to the IRS and recipients.[2]

Which forms authorize someone to represent the estate?

The instructions identify Form 2848 for authorization to represent the estate. Form 8821 authorizes inspection or receipt of tax information and does not authorize speaking for the estate.[2]

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Sources and data notes
  1. Internal Revenue Service, About Form 706. https://www.irs.gov/forms-pubs/about-form-706. Retrieved .
  2. Internal Revenue Service, Instructions for Form 706. https://www.irs.gov/instructions/i706. Retrieved .

Dates in this block record when each source was read for this page.