Form 706: United States Estate (and Generation-Skipping Transfer) Tax Return

Form 706 is generally completed by gathering the decedent’s financial and legal records, identifying the estate and personal representative, reporting applicable property and transfers, reporting deductions, completing applicable schedules, determining applicable tax information, and reviewing the completed return before submission.

The basic process is to gather estate records, identify the decedent and estate, report applicable assets and property interests, report deductions and expenses, provide beneficiary and transfer information, complete applicable schedules and elections, review the return, and submit it according to the applicable filing requirements. The estate should retain a copy of Form 706 and supporting records.

Section 1

Enter the identifying information for the decedent and estate. This generally includes the decedent’s name, address, Social Security number, date of death, and other applicable information.

The information should generally agree with the decedent’s legal, financial, and tax records. The executor or personal representative should review the identifying information carefully before completing the remaining sections.

Section 2

Enter the executor, administrator, personal representative, or other applicable fiduciary information. This generally includes the name, address, and other identifying information for the person responsible for the estate.

The fiduciary information should generally agree with the estate’s legal and administrative records. Any changes in the person responsible for the estate should be reflected as applicable.

Section 3

Report the property and assets included in the estate. This may include real estate, business interests, securities, bank accounts, retirement interests, personal property, insurance interests, and other applicable property.

The reported values should generally be supported by property records, financial statements, appraisals, account statements, ownership documents, and other applicable records. The estate should retain documentation supporting the reported values.

Section 4

Report applicable deductions and expenses. This may include qualifying debts, expenses of administration, funeral expenses, charitable deductions, marital deductions, and other applicable deductions.

The amounts reported should generally be supported by invoices, receipts, estate records, legal documents, charitable records, and other applicable documentation. Only deductions that apply to the estate should generally be included.

Section 5

Report applicable transfers and prior gifts. This may include certain property transfers, prior taxable gifts, and other transfers that may affect the estate tax calculation.

The information should generally be supported by prior gift tax returns, transfer records, legal documents, financial records, and other applicable documentation. The estate should review prior transfers carefully when completing the applicable sections.

Section 6

Report beneficiary, trust, and other applicable transfer information. This may include information about property passing to beneficiaries, trusts, surviving spouses, charitable organizations, or other recipients.

The information should generally agree with wills, trusts, beneficiary designations, account records, transfer documents, and other estate records. The estate should review beneficiary information carefully for accuracy.

Section 7

Complete applicable generation-skipping transfer tax information. This section applies when the estate has applicable generation-skipping transfers or other circumstances requiring this information.

The information should generally be supported by trust documents, transfer records, beneficiary information, prior tax records, and other applicable documentation. Only information that applies to the estate should generally be reported.

Section 8

Complete applicable elections and supporting schedules. Certain elections may affect how estate property, deductions, transfers, or other tax information is reported.

The executor or personal representative should review applicable elections carefully and retain supporting documentation. Elections should generally be consistent with the estate’s records and applicable tax reporting requirements.

Section 9

Complete the applicable tax calculation and other required information. This generally involves reviewing the estate’s reported property, deductions, transfers, credits, and other applicable amounts.

The calculations should generally be reviewed against the supporting estate and financial records. Any applicable credits, adjustments, or other amounts should be reviewed before the return is finalized.

Section 10

Review the completed Form 706 and applicable schedules. Check the decedent information, estate information, property, deductions, transfers, beneficiaries, trusts, elections, tax calculations, and supporting documentation.

The completed return should generally be reviewed for consistency and completeness before submission. The estate should retain a complete copy of the return and supporting records for its files.

Final Review

Review Form 706 after completing all applicable sections. Check the decedent information, executor information, estate assets, property values, deductions, expenses, transfers, beneficiaries, trusts, elections, tax calculations, schedules, supporting records, and final amounts reported.

A final review can help identify calculation or reporting errors before the return is submitted. Estates should retain Form 706, appraisals, financial statements, legal documents, beneficiary records, prior tax records, and supporting estate and tax records with the estate’s records.