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Instructions for Form

Department of the Treasury

Internal Revenue Service

706-NA

(Rev. August 2011)

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

Estate of nonresident not a citizen of the United States

(To be used with the July 2011 revision of Form 706-NA for decedents dying after

December 31, 2010.)

Note. In order to complete this return,

Executors must provide

Section references are to the Internal

you must obtain Form 706, United

documentation proving their status.

Revenue Code unless otherwise noted.

States Estate (and Generation-Skipping

Documentation will vary but may

Transfer) Tax Return and its

include a certified copy of the will or a

instructions. You must attach schedules

court order designating the executor(s).

from Form 706 if you intend to claim a

A statement by the executor(s) attesting

What’s New

marital deduction, a charitable

to their status is insufficient.

deduction, a qualified conservation

•

The provision for estates of

U.S. expatriate. Generally, a U.S.

easement exclusion, or a credit for tax

nonresident aliens allowing for an

expatriate is one who, within 10 years

on prior transfers, or if you answer

exemption of a portion of the

before the date of death, lost U.S.

“Yes” to question 5, 7, 8, 9a, 9b, or 11

decedent’s stock in a regulated

citizenship or (in certain cases) ended

in Part III, General Information. You will

investment company from U.S. estate

long-term U.S. residency with the

need the instructions to Form 706 to

tax was extended by the Tax Relief,

principal purpose of avoiding U.S.

explain how to value stocks and bonds.

Unemployment Insurance

taxes. See the instructions for Question

Make sure that you use the version of

Reauthorization and Job Creation Act

6a and Question 6b, below. Also, see

Form 706 that corresponds to the date

of 2010 (Act) at section 726(a). The

effective dates below for more

of the decedent’s death.

provision will apply to estates of

information.

Definitions

nonresident alien decedents dying on

Note. U.S. citizens and long-term

or before December 31, 2011.

The following definitions apply in these

•

residents who relinquished their U.S.

The Act also included several other

instructions.

citizenship or ceased to be lawful

provisions affecting the Form 706-NA.

United States. The United States

permanent residents (green card

They are:

holders) on or after June 17, 2008, are

means the 50 states and the District of

1. The maximum estate tax rate is

not considered U.S. expatriates for

Columbia.

35% (Act section 302(a)(2)).

purposes of this form. U.S. citizens and

Nonresident alien decedent. A

2. The applicable rate for

residents who receive bequests from

nonresident alien decedent is a

generation-skipping transfers is 35%

such individuals, however, may be

decedent who is neither domiciled in

(Act section 302(c)).

subject to tax under section 2801.

nor a citizen of the United States at the

3. Prior gifts must be calculated at

time of death. For purposes of this

the rate in effect at the decedent’s date

After June 3, 2004, but before

form, a citizen of a U.S. possession is

of death (Act section 302(d)(1)).

June 17, 2008. A citizen or long-term

•

not a U.S. citizen.

Executors must provide

resident who lost U.S. citizenship or

documentation of their status.

Long-term United States resident. A

residency after June 3, 2004, but

•

These instructions are for use with

long-term U.S. resident is an alien who

before June 17, 2008, is subject to the

the July 2011 revision of Form 706-NA.

has been a lawful permanent resident

alternative tax regime of section 877

of the U.S. (green card holder) in at

when the individual:

General Instructions

least 8 of the last 15 taxable years

1. Had an average annual net

ending with the taxable year in which

income tax liability for the 5 tax years

U.S. residency is terminated.

ending before the date of expatriation

Purpose of Form

greater than:

Executor. An executor is the personal

•

Form 706-NA is used to compute estate

representative, executor, executrix,

$124,000 if expatriated in 2004

•

and generation-skipping transfer (GST)

administrator, or administratrix of the

$127,000 if expatriated in 2005

tax liability for nonresident alien

deceased person’s estate. If no

•

$131,000 if expatriated in 2006

decedents. The estate tax is imposed

executor is appointed, qualified, and

•

$136,000 if expatriated in 2007

on the transfer of the decedent’s

acting in the United States, every

•

$139,000 if expatriated in 2008;

taxable estate rather than on the

person in actual or constructive

2. Had a net worth of $2,000,000 or

receipt of any part of it.

possession of any of the decedent’s

Instructions Draft For Form 706-Na - United States Estate (And Generation-Skipping Transfer) Tax Return Estate Of Nonresident Not A Citizen Of The United States Page 2

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