Fill in a Valid IRS 706 Template

The IRS Form 706, also known as the United States Estate (and Generation-Skipping Transfer) Tax Return, is used to report the value of an estate to determine potential federal tax liability. It is crucial for the estate executor to complete this form if the estate exceeds the federal exemption limit. For assistance in filling out the form, click the button below.

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The IRS Form 706 plays a crucial role in estate tax management, specifically for estates with a value exceeding a certain threshold. This form is required to determine the amount of federal estate tax owed by the decedent’s estate. Executors or personal representatives must file it within nine months of the individual's death, although an extension may be requested. The form gathers detailed financial information about the decedent's assets, liabilities, and any deductions that may apply, which can significantly impact the tax calculation. Understanding the nuances of this form is essential, as it encompasses not only the estate’s total value but also special considerations such as property that qualifies for the marital deduction and exemptions applicable under current tax laws. Accurate preparation is vital to ensure compliance with IRS requirements while minimizing potential liabilities for the estate. Filing this form necessitates careful consideration of various factors, making it important for estates of all sizes to approach the process with diligence and care.

IRS 706 Example

Form 706

(Rev. August 2019)

Department of the Treasury Internal Revenue Service

United States Estate (and Generation-Skipping Transfer)

Tax Return

Estate of a citizen or resident of the United States (see instructions). To be filed for decedents dying after December 31, 2018.

Go to www.irs.gov/Form706 for instructions and the latest information.

OMB No. 1545-0015

Part 1—Decedent and Executor

Part 2—Tax Computation

Decedent’s first name and middle initial (and maiden name, if any)

1b Decedent’s last name

2 Decedent’s social security no.

City, town, or post office; county; state or province; country; and ZIP

3b Year domicile established

4 Date of birth

5 Date of death

or foreign postal code

6b Executor’s address (number and street including apartment or suite no.; city, town,

or post office; state or province; country; and ZIP or foreign postal code) and

phone no.

Name of executor (see instructions)

Executor’s social security number (see instructions)

Phone no.

If there are multiple executors, check here

and attach a list showing the names, addresses, telephone numbers, and SSNs of the additional executors.

Name and location of court where will was probated or estate administered

7b Case number

If decedent died testate, check here

and attach a certified copy of the will.

9 If you extended the time to file this Form 706, check here

If Schedule R-1 is attached, check here

If you are estimating the value of assets included in the gross estate on line 1 pursuant to the special rule of Reg. section 20.2010-2(a)(7)(ii), check here

Total gross estate less exclusion (from Part 5—Recapitulation, item 13)

Tentative total allowable deductions (from Part 5—Recapitulation, item 24)

Tentative taxable estate (subtract line 2 from line 1)

State death tax deduction

Taxable estate (subtract line 3b from line 3a)

Adjusted taxable gifts (see instructions)

Add lines 3c and 4

Tentative tax on the amount on line 5 from Table A in the instructions

Total gift tax paid or payable (see instructions)

Gross estate tax (subtract line 7 from line 6)

Basic exclusion amount . . . .

. . . . . . .

. . . .

bDeceased spousal unused exclusion (DSUE) amount from predeceased spouse(s),

	if any (from Section D, Part 6—Portability of Deceased Spousal Unused Exclusion)		9b
c	Restored exclusion amount (see instructions)		9c
d	Applicable exclusion amount (add lines 9a, 9b, and 9c)	. . . . .	9d

eApplicable credit amount (tentative tax on the amount in line 9d from

Table A in the instructions)

10Adjustment to applicable credit amount (May not exceed $6,000. See

	instructions.)		10
11	Allowable applicable credit amount (subtract line 10 from line 9e)	. .	. . . . . . . . .	11
12	Subtract line 11 from line 8 (but do not enter less than zero) . . . .		. . . . . . . . .	12
13	Credit for foreign death taxes (from Schedule P). (Attach Form(s) 706-CE.)		13
14	Credit for tax on prior transfers (from Schedule Q)		14
15	Total credits (add lines 13 and 14)		. . . . . . . . .	15
16	Net estate tax (subtract line 15 from line 12)		. . . . . . . . .	16
17	Generation-skipping transfer (GST) taxes payable (from Schedule R, Part 2, line 10)			17
18	Total transfer taxes (add lines 16 and 17)		. . . . . . . . .	18
19	Prior payments (explain in an attached statement)		. . . . . . . . .	19
20	Balance due (or overpayment) (subtract line 19 from line 18) . . . .		. . . . . . . . .	20

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than the executor) is based on all information of which preparer has any knowledge.

Sign	FF		Signature of executor
Sign			Signature of executor
Here
			Signature of executor
		Print/Type preparer’s name		Preparer’s signature
Paid		Print/Type preparer’s name		Preparer’s signature
Paid
Preparer		Firm’s name
Preparer
Use Only
Use Only		Firm’s address
		Firm’s address

For Privacy Act and Paperwork Reduction Act Notice, see instructions.

Date

Cat. No. 20548R

Date

Check	if	PTIN
Check	if
self-employed

Firm’s EIN

Phone no.

Form 706 (Rev. 8-2019)

Decedent’s social security number

Estate of:

Part 3—Elections by the Executor

Note: For information on electing portability of the decedent’s DSUE amount, including how to opt out of the election, see Part 6—
	Portability of Deceased Spousal Unused Exclusion.
Note: Some of the following elections may require the posting of bonds or liens.			Yes	No
Please check “Yes” or “No” for each question. See instructions.
1	Do you elect alternate valuation?	1
2	Do you elect special-use valuation? If “Yes,” you must complete and attach Schedule A-1	2
3	Do you elect to pay the taxes in installments as described in section 6166?
	If “Yes,” you must attach the additional information described in the instructions.
	Note: By electing section 6166 installment payments, you may be required to provide security for estate tax deferred
	under section 6166 and interest in the form of a surety bond or a section 6324A lien.	3
4	Do you elect to postpone the part of the taxes due to a reversionary or remainder interest as described in section 6163? .	4

Part 4—General Information

Note: Please attach the necessary supplemental documents. You must attach the death certificate. See instructions.

Authorization to receive confidential tax information under Reg. section 601.504(b)(2)(i); to act as the estate’s representative before the IRS; and to make written or oral presentations on behalf of the estate:

Name of representative (print or type)

State

Address (number, street, and room or suite no., city, state, and ZIP code)

I declare that I am the

attorney/

certified public accountant/

enrolled agent (check the applicable box) for the executor. I am not under

suspension or disbarment from practice before the Internal Revenue Service and am qualified to practice in the state shown above.

Signature

CAF number

Date

Telephone number

1Death certificate number and issuing authority (attach a copy of the death certificate to this return).

2	Decedent’s business or occupation. If retired, check here	and state decedent’s former business or occupation.

3a	Marital status of the decedent at time of death:

Married

Widow/widower

Single

Legally separated

Divorced

3b For all prior marriages, list the name and SSN of the former spouse, the date the marriage ended, and whether the marriage ended by annulment, divorce, or death. Attach additional statements of the same size if necessary.

4a Surviving spouse’s name

4b Social security number

4c Amount received (see instructions)

5Individuals (other than the surviving spouse), trusts, or other estates who receive benefits from the estate (do not include charitable beneficiaries shown in Schedule O) (see instructions).

Name of individual, trust, or estate receiving $5,000 or more	Identifying number	Relationship to decedent	Amount (see instructions)

All unascertainable beneficiaries and those who receive less than $5,000 . . . . . . . . . . . . . . .

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If you answer “Yes” to any of the following questions, you must attach additional information as described.			Yes	No
6	Is the estate filing a protective claim for refund?
	If “Yes,” complete and attach two copies of Schedule PC for each claim.
7	Does the gross estate contain any section 2044 property (qualified terminable interest property (QTIP) from a prior gift or estate)?
	See instructions
8a	Have federal gift tax returns ever been filed?
	If “Yes,” attach copies of the returns, if available, and furnish the following information.
b	Period(s) covered	c Internal Revenue office(s) where filed

9a	Was there any insurance on the decedent’s life that is not included on the return as part of the gross estate?
b	Did the decedent own any insurance on the life of another that is not included in the gross estate?

Page 2

Form 706 (Rev. 8-2019)

Decedent’s social security number

Estate of:

Part 4—General Information (continued)

If you answer “Yes” to any of the following questions, you must attach additional information as described.

Yes No

10Did the decedent at the time of death own any property as a joint tenant with right of survivorship in which (a) one or more of the other joint tenants was someone other than the decedent’s spouse, and (b) less than the full value of the property is included on

the return as part of the gross estate? If “Yes,” you must complete and attach Schedule E . . . . . . . . . . .

11a Did the decedent, at the time of death, own any interest in a partnership (for example, a family limited partnership), an unincorporated business, or a limited liability company; or own any stock in an inactive or closely held corporation? . . . .

bIf “Yes,” was the value of any interest owned (from above) discounted on this estate tax return? If “Yes,” see the instructions on

reporting the total accumulated or effective discounts taken on Schedule F or G . . . . . . . . . . . . . .

12Did the decedent make any transfer described in sections 2035, 2036, 2037, or 2038? See instructions. If “Yes,” you must

complete and attach Schedule G . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13a Were there in existence at the time of the decedent’s death any trusts created by the decedent during his or her lifetime? . .

bWere there in existence at the time of the decedent’s death any trusts not created by the decedent under which the decedent

possessed any power, beneficial interest, or trusteeship? . . . . . . . . . . . . . . . . . . . . .

c Was the decedent receiving income from a trust created after October 22, 1986, by a parent or grandparent? . . . . . .

If “Yes,” was there a GST taxable termination (under section 2612) on the death of the decedent? . . . . . . . . .

dIf there was a GST taxable termination (under section 2612), attach a statement to explain. Provide a copy of the trust or will creating the trust, and give the name, address, and phone number of the current trustee(s).

eDid the decedent at any time during his or her lifetime transfer or sell an interest in a partnership, limited liability company, or

closely held corporation to a trust described in line 13a or 13b? . . . . . . . . . . . . . . . . . . .

If “Yes,” provide the EIN for this transferred/sold item.

14Did the decedent ever possess, exercise, or release any general power of appointment? If “Yes,” you must complete and attach Schedule H

15Did the decedent have an interest in or a signature or other authority over a financial account in a foreign country, such as a bank

account, securities account, or other financial account? . . . . . . . . . . . . . . . . . . . . .

16Was the decedent, immediately before death, receiving an annuity described in the “General” paragraph of the instructions for

Schedule I or a private annuity? If “Yes,” you must complete and attach Schedule I . . . . . . . . . . . . .

17Was the decedent ever the beneficiary of a trust for which a deduction was claimed by the estate of a predeceased spouse

under section 2056(b)(7) and which is not reported on this return? If “Yes,” attach an explanation . . . . . . . . .

Part 5—Recapitulation. Note: If estimating the value of one or more assets pursuant to the special rule of Reg. section 20.2010-2(a)(7)(ii), enter on both lines 10 and 23 the amount noted in the instructions for the corresponding range of values. See instructions for details.

Item no.	Gross estate				Alternate value		Value at date of death

1	Schedule A—Real Estate			1
2	Schedule B—Stocks and Bonds			2
3	Schedule C—Mortgages, Notes, and Cash			3
4	Schedule D—Insurance on the Decedent’s Life (attach Form(s) 712) . . . .			4
5	Schedule E—Jointly Owned Property (attach Form(s) 712 for life insurance) .			5
6	Schedule F—Other Miscellaneous Property (attach Form(s) 712 for life insurance)			6
7	Schedule G—Transfers During Decedent’s Life (att. Form(s) 712 for life insurance)			7
8	Schedule H—Powers of Appointment	. . . . . . . . . . . .		8
9	Schedule I—Annuities			9
10	Estimated value of assets subject to the special rule of Reg. section 20.2010-2(a)(7)(ii)			10
11	Total gross estate (add items 1 through 10)			11
12	Schedule U—Qualified Conservation Easement Exclusion		. . . . . .	12
13	Total gross estate less exclusion (subtract item 12 from item 11). Enter here and
	on line 1 of Part 2—Tax Computation			13

Item no.		Deductions					Amount

14	Schedule J—Funeral Expenses and Expenses Incurred in Administering Property Subject to Claims . .					14
15	Schedule K—Debts of the Decedent			. . . . . . .		15
16	Schedule K—Mortgages and Liens			. . . . . . .		16
17	Total of items 14 through 16			. . . . . . .		17
18	Allowable amount of deductions from item 17 (see the instructions for item 18 of the Recapitulation) . .					18
19	Schedule L—Net Losses During Administration			. . . . . . .		19
20	Schedule L—Expenses Incurred in Administering Property Not Subject to Claims .			. . . . . . .		20
21	Schedule M—Bequests, etc., to Surviving Spouse			. . . . . . .		21
22	Schedule O—Charitable, Public, and Similar Gifts and Bequests			. . . . . . .		22
23	Estimated value of deductible assets subject to the special rule of Reg. section 20.2010-2(a)(7)(ii) . . .					23
24	Tentative total allowable deductions (add items 18 through 23). Enter here and on line 2 of the Tax Computation					24

Page 3

Form 706 (Rev. 8-2019)

Decedent’s social security number

Estate of:

Part 6—Portability of Deceased Spousal Unused Exclusion (DSUE)

Portability Election

A decedent with a surviving spouse elects portability of the DSUE amount, if any, by completing and timely filing this return. No further action is required to elect portability of the DSUE amount to allow the surviving spouse to use the decedent’s DSUE amount.

Section A. Opting Out of Portability

The estate of a decedent with a surviving spouse may opt out of electing portability of the DSUE amount. Check here and do not complete Sections B and C of Part 6 only if the estate opts NOT to elect portability of the DSUE amount.

Section B. Qualified Domestic Trust (QDOT)	Yes	No
Are any assets of the estate being transferred to a QDOT?

If “Yes,” the DSUE amount portable to a surviving spouse (calculated in Section C, below) is preliminary and shall be redetermined at the time of the final distribution or other taxable event imposing estate tax under section 2056A. See instructions for more details.

Section C. DSUE Amount Portable to the Surviving Spouse (To be completed by the estate of a decedent making a portability election.) Complete the following calculation to determine the DSUE amount that can be transferred to the surviving spouse.

1	Enter the amount from line 9d, Part 2—Tax Computation	1
2	Reserved	2
3	Enter the value of the cumulative lifetime gifts on which tax was paid or payable. See instructions . . .	3
4	Add lines 1 and 3	4
5	Enter amount from line 10, Part 2—Tax Computation	5
6	Divide amount on line 5 by 40% (0.40) (do not enter less than zero)	6
7	Subtract line 6 from line 4	7
8	Enter the amount from line 5, Part 2—Tax Computation	8
9	Subtract line 8 from line 7 (do not enter less than zero)	9
10	DSUE amount portable to surviving spouse (Enter lesser of line 9 or line 9a, Part 2—Tax Computation) . .	10

Section D. DSUE Amount Received From Predeceased Spouse(s) (To be completed by the estate of a deceased surviving spouse with DSUE amount from predeceased spouse(s))

Provide the following information to determine the DSUE amount received from deceased spouses.

A	B	C		D	E	F	G
Name of Deceased Spouse	Date of Death	Portability		If “Yes,” DSUE	DSUE Amount	Year of Form 709	Remaining DSUE
(dates of death after	(enter as mm/dd/yy)	Election		Amount Received	Applied by	Reporting Use of DSUE	Amount, if any
December 31, 2010, only)		Made?		From Spouse	Decedent to	Amount Listed in col. E	(subtract col. E
					Lifetime Gifts		from col. D)

		Yes	No

Part 1 — DSUE RECEIVED FROM LAST DECEASED SPOUSE

Part 2 — DSUE RECEIVED FROM OTHER PREDECEASED SPOUSE(S) AND USED BY DECEDENT










Total (for all DSUE amounts from predeceased spouse(s) applied) . .
Add the amount from Part 1, column D, and the total from Part 2, column E. Enter the result on line 9b, Part 2—Tax
Computation

Page 4

Form 706 (Rev. 8-2019)

Estate of:

Decedent’s social security number

SCHEDULE A—Real Estate

•For jointly owned property that must be disclosed on Schedule E, see instructions.

•Real estate that is part of a sole proprietorship should be shown on Schedule F.

•Real estate that is included in the gross estate under sections 2035, 2036, 2037, or 2038 should be shown on Schedule G.

•Real estate that is included in the gross estate under section 2041 should be shown on Schedule H.

•If you elect section 2032A valuation, you must complete Schedule A and Schedule A-1.

Note: If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amount and Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions for more information. If you are not required to report the value of an asset, identify the property but make no entries in the last three columns.

Item

number

Description

Alternate

valuation date

Alternate value

Value at date of death

Total from continuation schedules or additional statements attached to this schedule .

TOTAL (Also enter on Part 5—Recapitulation, page 3, at item 1.) . . . . . . . . . .

(If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.)

Schedule A—Page 5

Form 706 (Rev. 8-2019)

Estate of:

Decedent’s social security number

SCHEDULE A-1—Section 2032A Valuation

Part 1. Type of Election (Before making an election, see the checklist in the instructions):

Protective election (Reg. section 20.2032A-8(b)). Complete Part 2, line 1, and column A of lines 3 and 4. See instructions.

Regular election. Complete all of Part 2 (including line 11, if applicable) and Part 3. See instructions.

Before completing Schedule A-1, see the instructions for the information and documents that must be included to make a valid election.

The election is not valid unless the agreement (that is, Part 3. Agreement to Special Valuation Under Section 2032A):

•Is signed by each qualified heir with an interest in the specially valued property, and

•Is attached to this return when it is filed.

Part 2. Notice of Election (Reg. section 20.2032A-8(a)(3))

Note: All real property entered on lines 2 and 3 must also be entered on Schedules A, E, F, G, or H, as applicable.

1 Qualified use—check one	Farm used for farming, or
	Trade or business other than farming

2Real property used in a qualified use, passing to qualified heirs, and to be specially valued on this Form 706.

Schedule and item number

from Form 706

Full value

(without section 2032A(b)(3)(B)

adjustment)

Adjusted value

(with section 2032A(b)(3)(B)

adjustment)

Value based on qualified use (without section 2032A(b)(3)(B) adjustment)

Totals . . . . . . . . . .

Attach a legal description of all property listed on line 2.

Attach copies of appraisals showing the column B values for all property listed on line 2.

3Real property used in a qualified use, passing to qualified heirs, but not specially valued on this Form 706.

A	B	C	D
Schedule and item number	Full value	Adjusted value	Value based on qualified use
from Form 706	(without section 2032A(b)(3)(B)	(with section 2032A(b)(3)(B)	(without section 2032A(b)(3)(B)
	adjustment)	adjustment)	adjustment)

Totals . . . . . . . . . .

If you checked “Regular election,” you must attach copies of appraisals showing the column B values for all property listed on line 3.

(continued on next page)

Schedule A-1—Page 6

Form 706 (Rev. 8-2019)

Estate of:

Decedent’s social security number

4Personal property used in a qualified use and passing to qualified heirs.

Schedule and item

number from Form 706

Adjusted value (with section 2032A(b)(3)(B) adjustment)

A (continued)	B (continued)
Schedule and item	Adjusted value (with section
number from Form 706	2032A(b)(3)(B) adjustment)

“Subtotal” from col. B, below left

Subtotal . . . . . . .

Total adjusted value . . .

5Enter the value of the total gross estate as adjusted under section 2032A(b)(3)(A).

6Attach a description of the method used to determine the special value based on qualified use.

7 Did the decedent and/or a member of his or her family own all property listed on line 2 for at least 5 of the 8 years Yes No immediately preceding the date of the decedent’s death? . . . . . . . . . . . . . . . . . . .

8Were there any periods during the 8-year period preceding the date of the decedent’s death during which the decedent or a member of his or her family:

a	Did not own the property listed on line 2?
b	Did not use the property listed on line 2 in a qualified use?

cDid not materially participate in the operation of the farm or other business within the meaning of section 2032A(e)(6)? If you answered “Yes” to any of the above, attach a statement listing the periods. If applicable, describe whether

the exceptions of sections 2032A(b)(4) or (5) are met.

9Attach affidavits describing the activities constituting material participation and the identity and relationship to the

decedent of the material participants.

10Persons holding interests. Enter the requested information for each party who received any interest in the specially valued property. (Each of the qualified heirs receiving an interest in the property must sign the agreement, to be found on Part 3 of this Schedule A-1, and the agreement must be filed with this return.)

Name

Address

Identifying number	Relationship to decedent	Fair market value	Special-use value

You must attach a computation of the GST tax savings attributable to direct skips for each person listed above who is a skip person. See instructions.

11 Woodlands election. Check here

if you wish to make a Woodlands election as described in section 2032A(e)(13). Enter

the schedule and item numbers from Form 706 of the property for which you are making this election

Attach a statement explaining why you are entitled to make this election. The IRS may issue regulations that require more information to substantiate this election. You will be notified by the IRS if you must supply further information.

Schedule A-1—Page 7

Form 706 (Rev. 8-2019)

Decedent’s social security number

Estate of:

Part 3. Agreement to Special Valuation Under Section 2032A

There cannot be a valid election unless:

• The agreement is executed by each one of the qualified heirs, and

• The agreement is included with the estate tax return when the estate tax return is filed. We (list all qualified heirs)

			,
being all the qualified heirs and (list all other persons having an interest in the property required to sign this agreement)

			,
being all other parties having interests in the property, which is qualified real property and which is valued under section 2032A, do
hereby approve of the election made by			,
Executor/Administrator of the estate of			,
pursuant to section 2032A to value said property on the basis of the qualified use to which the property is devoted and do hereby
enter into this agreement pursuant to section 2032A(d).

The undersigned agree and consent to the application of subsection (c) of section 2032A with respect to all the property described on Form 706, Schedule A-1, Part 2, line 2, attached to this agreement. More specifically, the undersigned heirs expressly agree and consent to personal liability under subsection (c) of 2032A for the additional estate and GST taxes imposed by that subsection with respect to their respective interests in the above-described property in the event of certain early dispositions of the property or early cessation of the qualified use of the property. It is understood that if a qualified heir disposes of any interest in qualified real property to any member of his or her family, such member may thereafter be treated as the qualified heir with respect to such interest upon filing a Form 706-A, United States Additional Estate Tax Return, and a new agreement.

The undersigned interested parties who are not qualified heirs consent to the collection of any additional estate and GST taxes imposed under section 2032A(c) from the specially valued property.

If there is a disposition of any interest which passes, or has passed to him or her, or if there is a cessation of the qualified use of any specially valued property which passes or passed to him or her, each of the undersigned heirs agrees to file a Form 706-A, and pay any additional estate and GST taxes due within 6 months of the disposition or cessation.

It is understood by all interested parties that this agreement is a condition precedent to the election of special-use valuation under section 2032A and must be executed by every interested party even though that person may not have received the estate (or GST) tax benefits or be in possession of such property.

Each of the undersigned understands that by making this election, a lien will be created and recorded pursuant to section 6324B on the property referred to in this agreement for the adjusted tax differences with respect to the estate as defined in section 2032A(c)(2)

(C).

As the interested parties, the undersigned designate the following individual as their agent for all dealings with the Internal Revenue Service concerning the continued qualification of the specially valued property under section 2032A and on all issues regarding the special lien under section 6324B. The agent is authorized to act for the parties with respect to all dealings with the Internal Revenue Service on matters affecting the qualified real property described earlier. This includes the authorization:

•To receive confidential information on all matters relating to continued qualification under section 2032A of the specially valued real property and on all matters relating to the special lien arising under section 6324B;

•To furnish the Internal Revenue Service with any requested information concerning the property;

•To notify the Internal Revenue Service of any disposition or cessation of qualified use of any part of the property;

•To receive, but not to endorse and collect, checks in payment of any refund of Internal Revenue taxes, penalties, or interest;

•To execute waivers (including offers of waivers) of restrictions on assessment or collection of deficiencies in tax and waivers of notice of disallowance of a claim for credit or refund; and

•To execute closing agreements under section 7121.

(continued on next page)

Schedule A-1—Page 8

Form 706 (Rev. 8-2019)

Estate of:

Decedent’s social security number

Part 3. Agreement to Special Valuation Under Section 2032A (continued)

• Other acts (specify)

By signing this agreement, the agent agrees to provide the Internal Revenue Service with any requested information concerning this property and to notify the Internal Revenue Service of any disposition or cessation of the qualified use of any part of this property.

Name of Agent

Signature

Address

The property to which this agreement relates is listed in Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, and in the Notice of Election, along with its fair market value according to section 2031 and its special-use value according to section 2032A. The name, address, social security number, and interest (including the value) of each of the undersigned in this property are as set forth in the attached Notice of Election.

IN WITNESS WHEREOF, the undersigned have hereunto set their hands at				,
this	day of	.
SIGNATURES OF EACH OF THE QUALIFIED HEIRS:

Signature of qualified heir			Signature of qualified heir

Signature of qualified heir			Signature of qualified heir

Signature of qualified heir			Signature of qualified heir

Signature of qualified heir			Signature of qualified heir

Signature of qualified heir			Signature of qualified heir

Signature of qualified heir			Signature of qualified heir

Signatures of other interested parties

Schedule A-1—Page 9

Form 706 (Rev. 8-2019)

Estate of:

Decedent’s social security number

SCHEDULE B—Stocks and Bonds

(For jointly owned property that must be disclosed on Schedule E, see instructions.)

Item	Description, including face amount of bonds or number of shares	Unit value	Alternate	Alternate value	Value at
Item	and par value for identification. Give CUSIP number.		Alternate		Value at
number	and par value for identification. Give CUSIP number.		valuation date		date of death
number	If trust, partnership, or closely held entity, give EIN.		valuation date		date of death
	If trust, partnership, or closely held entity, give EIN.
	CUSIP number or EIN,
	where applicable

Total from continuation schedules (or additional statements) attached to this schedule .

TOTAL (Also enter on Part 5—Recapitulation, page 3, at item 2.) . . . . . . . . . .

(If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.)

Schedule B—Page 10

Click for IRS 706 File

File Breakdown

Fact Name	Description
Purpose	The IRS 706 form is used to report the estate tax owed on a deceased person's estate when the total value exceeds a certain threshold.
Threshold	For the year 2023, estates valued at over $12.92 million are required to file the IRS 706 form.
Filing Deadline	The form must be filed within nine months of the date of death, with a possible six-month extension available under certain circumstances.
Governing Law	The IRS 706 falls under federal law; however, some states may impose their own estate taxes which could have different forms and deadlines.

Guide to Using IRS 706

After gathering the necessary information regarding the estate, the IRS 706 form can be completed carefully. This form requires specific details about the decedent's assets and any applicable deductions. The following steps will guide you through the process of filling out the form accurately.

Begin by reviewing the instructions included with the form. This will provide essential guidance on required information and the completion process.
Provide the decedent's name, Social Security number, and date of death at the top of the form.
List the estate's gross assets. This includes bank accounts, real estate, stock holdings, and any other property owned by the decedent.
Document any debts and expenses that need to be deducted from the gross estate value. These may include mortgages, administrative expenses, or funeral costs.
Calculate the net value of the estate by subtracting total deductions from the gross assets.
Fill in details regarding state estate taxes owed, if applicable.
Complete the section that requests information about any prior taxable gifts made by the decedent during their lifetime.
Check any relevant boxes for special election types or tax credits that may apply.
Sign and date the form. A personal representative or executor of the estate should provide their signature.
Submit the completed form to the IRS by the deadline, keeping a copy for your records.

Once the IRS 706 form is submitted, the next steps would typically involve awaiting any correspondence from the IRS and preparing to respond to any inquiries or additional requests for information that may arise.

Get Answers on IRS 706

What is IRS Form 706?

IRS Form 706, also known as the United States Estate (and Generation-Skipping Transfer) Tax Return, is a form used to report the value of a deceased person's estate to the IRS. It calculates any estate tax that may be due based on the total taxable estate. This form becomes necessary when the estate's value exceeds the federal exemption threshold, which adjusts periodically.

Who is required to file Form 706?

If the estate's gross value exceeds the federal estate tax exemption limit for the year of death, the executor or administrator must file Form 706. In 2023, this threshold is $12.92 million. Estates below this threshold generally do not have to file; however, it's crucial to check specific state laws, as some states have lower exemption amounts.

When is Form 706 due?

Form 706 is generally due nine months after the date of the decedent's death. If more time is needed, the executor can file for an extension by submitting IRS Form 4768. This extension can provide an additional six months to file, but remember that any taxes owed must still be paid by the original due date to avoid penalties and interest.

What information is needed to complete Form 706?

To fill out Form 706, the following information and documents are typically required:

The decedent’s date of death and date of birth.
A detailed inventory of all assets, including real estate, bank accounts, investments, and personal property.
Liabilities and debts owed by the decedent.
Birthdates and relationships of any heirs or beneficiaries.
Previous gifts and their values if they affect the estate tax calculations.

What are the common deductions available on Form 706?

When calculating the taxable estate, several deductions can apply. Common deductions include:

The value of any debts owed by the decedent.
Funeral expenses incurred.
Any estate administration expenses.
Charitable contributions made by the estate.
Marital deduction for property passed to a surviving spouse.

These deductions reduce the total taxable value of the estate and potentially lower the overall tax liability.

Can you make corrections to Form 706 after filing?

Yes, corrections can be made. If you discover errors after submitting Form 706, you can file an amended version of the form. Use the same form and clearly mark it as "Amended." It’s crucial to submit any amendments as soon as possible to avoid any potential problems with your estate tax obligations.

Where can I get more help with Form 706?

If you have questions about completing IRS Form 706, consider consulting a tax professional or an estate planning attorney. Resources are also available on the IRS website, where you can find instructions, guidelines, and additional forms related to estate tax matters. Local tax clinics may also offer assistance, especially for individuals needing help understanding their estate tax responsibilities.

Common mistakes

Completing the IRS Form 706, the United States Estate (and Generation-Skipping Transfer) Tax Return, is a detailed process that demands accuracy and attention to detail. Unfortunately, many people make common mistakes that can lead to delays, additional costs, or even audits. Understanding these errors is crucial for ensuring a smooth filing experience.

One frequent mistake is failing to report all assets. Individuals often overlook certain types of property. This includes non-titled assets like cash and personal belongings. Every asset that could potentially contribute to the estate's value needs to be included to avoid underreporting estate value.

Another common error involves incorrect valuations. Accurately valuing estate assets is essential, yet many underestimate or overestimate their worth. Getting an accurate appraisal from a qualified professional can help avoid problems with the IRS later.

People also tend to miscalculate deductions. The IRS allows for specific deductions related to debts, funeral costs, and administrative expenses. Missing these can significantly increase overall tax liability. It is important to carefully review the rules surrounding deductions to maximize available benefits.

Omitting required signatures is a straightforward but critical mistake. The form must be signed by the executor or administrator of the estate. A missing signature can lead to the rejection of the filing. Ensuring that all necessary signatures are in place is vital in the process.

Some individuals make alterations to the form that can invalidate their submission. If corrections need to be made, those should be documented properly rather than crossed out. This can prevent confusion and keep the submission process clear.

Many people fail to communicate with beneficiaries about their roles in the filing process. Informing them can help clarify their potential tax liabilities. They may also need to provide information for the form, so keeping the lines of communication open is key.

Filing late is another significant pitfall. There is a strict deadline for submitting Form 706. Missing this deadline can incur penalties and interest charges. It is essential to keep track of deadlines and plan accordingly to avoid these issues.

Failing to consult tax professionals is a serious oversight. The complexities of estate tax law can be daunting. Having an experienced tax advisor can greatly simplify the process, ensuring compliance and helping to navigate any unique circumstances that may arise.

Finally, overlooking state taxes can lead to additional headaches. While Form 706 addresses federal estate tax, some states have their own estate tax requirements. Researching and adhering to those local laws is essential to avoid incurring unexpected liabilities.

Documents used along the form

When navigating the complexities of estate taxation, various forms and documents accompany the IRS 706 form, which is the United States Estate (and Generation-Skipping Transfer) Tax Return. These additional documents are essential for providing the necessary information and ensuring compliance with federal tax laws. Below is a list of common forms and documents that may be needed alongside the IRS 706 form.

Form 706-CE: This is the Certificate of Payment of Foreign Death Taxes. It is used to report the payment of estate taxes in foreign jurisdictions, allowing for potential credits on the federal estate tax return.
Form 709: This is the United States Gift (and Generation-Skipping Transfer) Tax Return. If gifts were made by the decedent during their lifetime, this form must accompany the IRS 706 to track taxable gifts and determine applicable exemptions.
Form 2848: The Power of Attorney and Declaration of Representative allows individuals to designate someone to handle their estate tax matters and represent them before the IRS.
Form 56: Notice Concerning Fiduciary Relationship informs the IRS of the appointment of a fiduciary, such as an executor, settling the estate. This form is crucial in ensuring that the IRS is aware of who is handling the estate’s tax obligations.
Schedule A: This part of Form 706 outlines real estate and personal property owned by the decedent as of their date of death, which is essential for determining the value of the estate.
Schedule B: This schedule details stocks and bonds held by the decedent, helping to establish the total value of these financial assets for estate tax calculations.
Schedule G: This document lists any transfers made by the decedent to others within three years of their death, identifying potentially taxable gifts to be included in the estate's value.
Schedule M: The Estate Tax Marital Deduction Schedule specifies bequests to a surviving spouse, which are often deductible from the estate's taxable value, thus reducing the overall tax burden.

Understanding these accompanying documents can simplify the process of filing the IRS 706 and help ensure compliance with all applicable tax regulations. Each form plays a unique role in reporting and calculating the estate's tax obligations, ultimately helping to minimize potential disputes and penalties.

Similar forms

IRS Form 1040: Similar to the IRS Form 706, the Form 1040 is an individual income tax return. Both forms require detailed financial information and documentation about assets and liabilities. While Form 706 deals with estate taxes, Form 1040 focuses on individual income and deductions.
IRS Form 709: The IRS Form 709 is the United States Gift (and Generation-Skipping Transfer) Tax Return. It is similar to Form 706 as both deal with transfers of wealth. Where Form 706 covers estate taxes due at death, Form 709 handles tax implications of gifts made during one’s lifetime.
IRS Form 990: This form is used by tax-exempt organizations to provide information on their financial status. Like Form 706, it requires detailed disclosures about financial activities, although it focuses on non-profit organizations rather than estates.
IRS Form 1041: Form 1041 is used for income tax returns for estates and trusts. It is similar to Form 706 as both pertain to tax matters for deceased individuals. Form 1041 reports income earned by the estate after death, while Form 706 calculates the estate tax owed.
IRS Form 1099: While primarily a reporting form for income, Form 1099 can capture various types of payments that could impact an estate's taxable amount. Similar to Form 706, it requires accurate reporting and record-keeping of financial transactions.
Schedule A (Form 706): This is a part of Form 706 specifically for itemized deductions. Given its role in detailing deductions for estate tax calculations, it is integral to the overall goal of estate tax filing, much like the main Form 706.
IRS Form 4506: This is a request for a copy of a tax return. Similar to Form 706, it provides a way to access crucial financial documents that may influence estate settlement and tax calculations.
IRS Form 4868: This form allows for an extension to file individual income tax returns. Its similarity lies in the way both forms address deadlines and tax obligations, providing necessary protocols for filers who may need additional time.

Dos and Don'ts

When it comes to filling out the IRS Form 706, which is used for the estate tax return, careful attention to detail is crucial. Below are some essential dos and don’ts that can guide you through the process.

Do start early to allow ample time for gathering necessary information and completing the form.
Don’t assume that all estates are subject to tax; make sure to review current thresholds and exemptions.
Do consult relevant documentation, such as appraisals of property and valuations of assets.
Don’t overlook the importance of accuracy; even small errors can lead to complications or delays in processing.
Do consider seeking assistance from a tax professional who specializes in estate matters.
Don’t forget to attach any necessary supporting documents, as incomplete submissions can lead to rejection.
Do keep copies of all submitted forms and documentation for your records.

By adhering to these guidelines, you can navigate the complexities of the IRS Form 706 with greater confidence. Always remember that staying informed and thorough in your preparation can make a significant difference in your experience.

Misconceptions

The IRS Form 706 is commonly misunderstood. Here are some common misconceptions:

Only wealthy people need to file Form 706. This form is required when an estate exceeds the federal estate tax exemption limit. While it may be primarily associated with wealthy estates, anyone with significant assets could potentially need to file.
Filing Form 706 is optional if you don’t want to pay taxes. Filing is mandatory if the estate qualifies, even if no tax is owed. Skipping the form can lead to penalties.
All assets are taxed under Form 706. Not all assets are subject to estate taxes. Certain assets, like life insurance proceeds or retirement accounts, may have specific rules regarding their inclusion in the estate.
The estate tax is always payable immediately. Estates can often defer payment on taxes by using assets or payment plans, avoiding immediate financial strain.
Filing Form 706 means the estate will owe taxes. It's possible to file the form even when no estate tax is owed. This is often done to secure a record or clarify the estate's value.
Form 706 is the same for everyone. Each estate is unique. Different situations, like state taxes and specific deductions, can affect how the form is filled out.
You can file Form 706 anytime. There are strict deadlines for filing. Typically, the form must be filed within nine months of the decedent's death. Extensions can be requested, but they are not automatic.
Expert help is not necessary. While some individuals may attempt to complete the form themselves, seeking expert help can ensure accuracy and compliance, which can save time and money in the long run.
Once filed, your responsibility ends. After filing, estates must remain aware of any changes in asset valuation or tax law that could affect their tax obligations.

Understanding these misconceptions is vital for effective estate planning. Taking the right steps can make a significant difference.

Key takeaways

The IRS Form 706 is crucial for reporting the estate tax of a deceased individual. Understanding key elements can make the process smoother. Here are seven important takeaways for filling out and using this form.

Eligibility: The form is required for estates exceeding a certain value, as defined by IRS regulations. Familiarize yourself with the current threshold to determine if filing is necessary.
Filing Deadline: The form generally needs to be filed within nine months of the decedent's date of death. Extensions may be available but should be addressed promptly.
Valuation of Assets: Accurately value all assets, including property, investments, and other holdings. Obtain professional appraisals if needed to ensure compliance and accuracy.
Deductions: Be aware of deductions that may apply, such as debts, funeral expenses, and certain gifts made before the death. These can significantly affect the taxable value of the estate.
Executor Responsibilities: The appointed executor has the duty to complete and submit the form. This individual must gather the necessary information and ensure accuracy in reporting.
Payment of Taxes: If taxes are owed, they must be paid along with the submission of the form. Failure to pay may result in penalties or interest accruing on the owed amount.
Recordkeeping: Retain copies of the completed form and all relevant documents for future reference. This is essential for audits and estate inquiries.