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The IRS will publish amounts for to allow the decedent’s surviving you should file Form 706-NA. If such a future years in annual revenue spouse to use the decedent’s unused decedent became a U.S. citizen wholly procedures. exclusion amount for estate and gift tax independently of his or her connection purposes. See instructions for line 4, with a possession, then the decedent is • Executors must provide Part 4—General Information, below, considered a U.S. citizen for estate tax documentation of their status. and section 2010(c)(4) and (c)(5). purposes, and you should file Form • The IRS has created a page on 706. IRS.gov for information about Form 706 Gross Estate and its instructions, at www.irs.gov/ form706. Information about any future The gross estate includes all property in Executor developments affecting Form 706 (such which the decedent had an interest The term “executor” means the as legislation enacted after we release (including real property outside the executor, personal representative, or it) will be posted on that page. United States). It also includes: administrator of the decedent’s estate. • Certain transfers made during the If none of these is appointed, qualified, decedent’s life without an adequate and and acting in the United States, every Reminders full consideration in money or money’s person in actual or constructive worth, possession of any property of the In 2008, we added a worksheet to help • Annuities, decedent is considered an executor executors figure how much of the • The includible portion of joint estates and must file a return. estate tax may be paid in installments with right of survivorship (see Executors must provide under section 6166. See Determine instructions for Schedule E), documentation proving their status. how much of the estate tax may be • The includible portion of tenancies by Documentation will vary, but may paid in installments under section 6166, the entirety (see instructions for include documents such as a certified below. Schedule E), copy of the will or a court order • Certain life insurance proceeds (even designating the executor(s). A though payable to beneficiaries other General Instructions statement by the executor attesting to than the estate) (see instructions for their status is insufficient. Schedule D), Purpose of Form • Property over which the decedent When To File The executor of a decedent’s estate possessed a general power of uses Form 706 to figure the estate tax You must file Form 706 to report estate appointment, imposed by Chapter 11 of the Internal and/or GST tax within 9 months after • Dower or curtesy (or statutory estate) Revenue Code. This tax is levied on the date of the decedent’s death. If you of the surviving spouse, and the entire taxable estate and not just on are unable to file Form 706 by the due • Community property to the extent of the share received by a particular date, you may receive an extension of the decedent’s interest as defined by beneficiary. Form 706 is also used to time to file. Use Form 4768, Application applicable law. figure the generation-skipping transfer for Extension of Time To File a Return For more specific information, see (GST) tax imposed by Chapter 13 on and/or Pay U.S. Estate (and the instructions for Schedules A direct skips (transfers to skip persons of Generation-Skipping Transfer) Taxes, through I. interests in property included in the to apply for an automatic 6-month decedent’s gross estate). extension of time to file. U.S. Citizens or Residents; Private delivery services. You can Nonresident Noncitizens Which Estates Must File use certain private delivery services File Form 706 for the estates of designated by the IRS to meet the For decedents dying in 2011, Form 706 decedents who were either U.S. “timely mailing as timely filing/paying” must be filed by the executor for the citizens or U.S. residents at the time of rule for tax returns and payments. estate of every U.S. citizen or resident: death. For estate tax purposes, a These private delivery services include a. Whose gross estate, plus adjusted resident is someone who had a only the following: taxable gifts and specific exemption, domicile in the United States at the time • DHL Express (DHL): DHL Same Day is more than $5,000,000; or, of death. A person acquires a domicile Service. b. Whose executor wants to make by living in a place for even a brief • Federal Express (FedEx): FedEx the election to permit the decedent’s period of time, as long as the person Priority Overnight, FedEx Standard surviving spouse to use the had no intention of moving from that Overnight, FedEx 2Day, FedEx decedent’s unused exclusion place. International Priority, FedEx amount, regardless of the size of the International First. File Form 706-NA, U.S. Estate (and decedent’s gross estate. See • United Parcel Service (UPS): UPS Generation-Skipping Transfer) Tax instructions for Part 4, line 4. Next Day Air, UPS Next Day Air Saver, Return, for the estates of nonresident UPS 2nd Day Air, UPS 2nd Day Air alien decedents (decedents who were A.M., UPS Worldwide Express Plus, To determine whether you must file neither U.S. citizens nor U.S. residents and UPS Worldwide Express. a return for the estate, add: at the time of death). The private delivery service can tell 1. The adjusted taxable gifts (as Residents of U.S. you how to get written proof of the defined in section 2503) made by the Possessions mailing date. decedent after December 31, 1976; 2. The total specific exemption All references to citizens of the United allowed under section 2521 (as in effect Where To File States are subject to the provisions of before its repeal by the Tax Reform Act sections 2208 and 2209, relating to File Form 706 at the following address: of 1976) for gifts made by the decedent decedents who were U.S. citizens and Department of the Treasury after September 8, 1976; and residents of a U.S. possession on the Internal Revenue Service Center 3. The decedent’s gross estate date of death. If such a decedent Cincinnati, OH 45999 valued at the date of death. became a U.S. citizen only because of his or her connection with a Paying the Tax If you determine filing a return for the possession, then the decedent is estate is not required, you nonetheless considered a nonresident alien The estate and GST taxes are due should file a return if you intend to elect decedent for estate tax purposes, and within 9 months after the date of the -2- General Instructions