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General Instructions

Certain transfers made during the

and acting in the United States, every

decedent’s life without an adequate and

person in actual or constructive

full consideration in money or money’s

possession of any property of the

Purpose of Form

worth,

decedent is considered an executor

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Annuities,

and must file a return.

The executor of a decedent’s estate

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The includible portion of joint estates

Executors must provide

uses Form 706 to figure the estate tax

with right of survivorship (see

documentation proving their status.

imposed by Chapter 11 of the Internal

instructions for Schedule E),

Documentation will vary, but may

Revenue Code. This tax is levied on

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The includible portion of tenancies by

include documents such as a certified

the entire taxable estate and not just on

the entirety (see instructions for

copy of the will or a court order

the share received by a particular

Schedule E),

designating the executor(s). A

beneficiary. Form 706 is also used to

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Certain life insurance proceeds (even

statement by the executor attesting to

compute the generation-skipping

though payable to beneficiaries other

their status is insufficient.

transfer (GST) tax imposed by Chapter

than the estate) (see instructions for

13 on direct skips (transfers to skip

Schedule D),

When To File

persons of interests in property

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Property over which the decedent

included in the decedent’s gross

Generally, you must file Form 706 to

possessed a general power of

estate).

report estate and/or GST tax within 9

appointment,

months after the date of the decedent’s

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Dower or curtesy (or statutory estate)

Which Estates Must File

death. However, for decedent’s dying

of the surviving spouse, and

after December 31, 2009, and before

For decedents dying in 2010, Form 706

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Community property to the extent of

December 17, 2010, the due date for

must be filed by the executor for the

the decedent’s interest as defined by

Form 706 is September 19, 2011.

estate of every U.S. citizen or resident

applicable law.

whose gross estate, plus adjusted

If you are unable to file Form 706 by

For more specific information, see

taxable gifts and specific exemption, is

the due date, you may receive an

the instructions for Schedules A

more than $5,000,000, unless the

extension of time to file. Use Form

through I.

executor makes the special election to

4768, Application for Extension of Time

apply modified carryover basis

U.S. Citizens or Residents;

To File a Return and/or Pay U.S. Estate

treatment, described below.

(and Generation-Skipping Transfer)

Nonresident Noncitizens

Taxes, to apply for an automatic

To determine whether you must file

File Form 706 for the estates of

6-month extension of time to file.

a return for the estate, add:

decedents who were either U.S.

Private delivery services. You can

1. The adjusted taxable gifts (as

citizens or U.S. residents at the time of

use certain private delivery services

defined in section 2503) made by the

death. For estate tax purposes, a

designated by the IRS to meet the

decedent after December 31, 1976;

resident is someone who had a

“timely mailing as timely filing/paying”

2. The total specific exemption

domicile in the United States at the time

rule for tax returns and payments.

allowed under section 2521 (as in effect

of death. A person acquires a domicile

These private delivery services include

before its repeal by the Tax Reform Act

by living in a place for even a brief

only the following:

of 1976) for gifts made by the decedent

period of time, as long as the person

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DHL Express (DHL): DHL Same Day

after September 8, 1976; and

had no intention of moving from that

Service.

3. The decedent’s gross estate

place.

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Federal Express (FedEx): FedEx

valued at the date of death.

File Form 706-NA for the estates of

Priority Overnight, FedEx Standard

nonresident alien decedents

Overnight, FedEx 2Day, FedEx

The Act allows estates of decedents

(decedents who were neither U.S.

International Priority, FedEx

dying in 2010 to elect modified

citizens nor U.S. residents at the time

International First.

carryover basis treatment by filing a

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of death).

United Parcel Service (UPS): UPS

timely and complete Form 8939. If such

Next Day Air, UPS Next Day Air Saver,

Residents of U.S.

an election is made, the estate will not

UPS 2nd Day Air, UPS 2nd Day Air

be subject to federal estate tax and

Possessions

A.M., UPS Worldwide Express Plus,

must not file Form 706, even if the

and UPS Worldwide Express.

All references to citizens of the United

estate is valued at $5,000,000 or

States are subject to the provisions of

greater. If a Form 706 (or Form

The private delivery service can tell

sections 2208 and 2209, relating to

you how to get written proof of the

706-NA, United States Estate (and

decedents who were U.S. citizens and

Generation-Skipping Transfer) Tax

mailing date.

residents of a U.S. possession on the

Return of a Nonresident not a Citizen of

Where To File

date of death. If such a decedent

the United States) is received in

became a U.S. citizen only because of

addition to a Form 8939, all persons

File Form 706 at the following address:

his or her connection with a

who filed the forms will be required to

possession, then the decedent is

Department of the Treasury

sign and file a collective Form 8939 or

considered a nonresident alien

Internal Revenue Service Center

Form 706 (or Form 706-NA) within 90

decedent for estate tax purposes, and

Cincinnati, OH 45999

days of notification of the discrepancy.

you should file Form 706-NA. If such a

For more information on modified

Paying the Tax

decedent became a U.S. citizen wholly

carryover basis and making the special

independently of his or her connection

election, see Form 8939 and its

The estate and GST taxes are due

with a possession, then the decedent is

instructions, Notice 2011-66, 2011-35

within 9 months after the date of the

considered a U.S. citizen for estate tax

I.R.B. 184, and Rev. Proc. 2011-41,

decedent’s death; however, for

purposes, and you should file Form

2011-35 I.R.B. 188

(

decedents dying after December 31,

706.

pub/irs-irbs/irb11-35.pdf).

2009, and before December 17, 2010,

the due date for payment is September

Executor

Gross Estate

19, 2011. You may request an

The gross estate includes all property in

The term “executor” means the

extension of time for payment by filing

which the decedent had an interest

executor, personal representative, or

Form 4768. You may also elect under

(including real property outside the

administrator of the decedent’s estate.

section 6166 to pay in installments or

United States). It also includes:

If none of these is appointed, qualified,

under section 6163 to postpone the

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General Instructions

Instructions For Form 706 - United States Estate (And Generation-Skipping Transfer) Tax Return - 2011 Page 2

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