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Instructions for Form 706 (Rev. September 2021) For decedents dying after December 31, 2020 United States Estate (and Generation-Skipping Transfer) Tax Return Department of the Treasury Internal Revenue Service Section references are to the Internal Revenue Code unless otherwise noted. Revisions of Form 706 For Decedents Dying Use Revision of Form 706 Dated After and Before December 31, 1998 January 1, 2001 July 1999 December 31, 2000 January 1, 2002 November 2001 December 31, 2001 January 1, 2003 August 2002 December 31, 2002 January 1, 2004 August 2003 December 31, 2003 January 1, 2005 August 2004 December 31, 2004 January 1, 2006 August 2005 December 31, 2005 January 1, 2007 October 2006 December 31, 2006 January 1, 2008 September 2007 December 31, 2007 January 1, 2009 August 2008 December 31, 2008 January 1, 2010 September 2009 December 31, 2009 January 1, 2011 July 2011 December 31, 2010 January 1, 2012 August 2011 December 31, 2011 January 1, 2013 August 2012 December 31, 2012 January 1, 2017 August 2013 December 31, 2016 January 1, 2018 August 2017 December 31, 2017 January 1, 2019 November 2018 December 31, 2018 August 2019 Contents Page General Instructions . . . . . . . . . . . . . 1 Purpose of Form . . . . . . . . . . . . 1 Which Estates Must File . . . . . . . 2 Executor . . . . . . . . . . . . . . . . . 2 When To File . . . . . . . . . . . . . . 2 Where To File . . . . . . . . . . . . . . 2 Paying the Tax . . . . . . . . . . . . . 3 Signature and Verification . . . . . . 3 Amending Form 706 . . . . . . . . . 3 Supplemental Documents . . . . . . 3 Rounding Off to Whole Dollars . . . . . . . . . . . . . . . . 4 Penalties . . . . . . . . . . . . . . . . . 4 Obtaining Forms and Publications To File or Use . . . . . . . . . . . . . . . . . . 4 Contents Page Specific Instructions . . . . . . . . . . . . . 5 Part 1—Decedent and Executor . . . . . . . . . . . . . . . 5 Part 2—Tax Computation . . . . . . 5 Part 3—Elections by the Executor . . . . . . . . . . . . . . 10 Part 4—General Information . . . 15 Part 5—Recapitulation . . . . . . . 17 Part 6—Portability of Deceased Spousal Unused Exclusion (DSUE) . . . . . . . . . . . . . . . 17 Schedule A—Real Estate . . . . . 19 Schedule A-1—Section 2032A Valuation . . . . . . . . . 20 Schedule B—Stocks and Bonds . . . . . . . . . . . . . . . . 22 Schedule C—Mortgages, Notes, and Cash . . . . . . . . . 24 Schedule D—Insurance on the Decedent's Life . . . . . . . 25 Schedule E—Jointly Owned Property . . . . . . . . . . . . . . 25 Schedule F—Other Miscellaneous Property . . . . 26 Schedule G—Transfers During Decedent's Life . . . . . 27 Schedule H—Powers of Appointment . . . . . . . . . . . 29 Schedule I—Annuities . . . . . . . 30 Schedule J—Funeral Expenses and Expenses Incurred in Administering Property Subject to Claims . . . . . . . . . . . . . . . 32 Schedule K—Debts of the Decedent and Mortgages and Liens . . . . . . . . . . . . . 33 Schedule L—Net Losses During Administration and Expenses Incurred in Administering Property Not Subject to Claims . . . . . . 34 Schedule M—Bequests, etc., to Surviving Spouse (Marital Deduction) . . . . . . . 35 Schedule O—Charitable, Public, and Similar Gifts and Bequests . . . . . . . . . . . 38 Schedule P—Credit for Foreign Death Taxes . . . . . . 39 Schedule Q—Credit for Tax on Prior Transfers . . . . . . . . 40 Schedules R and R-1— Generation-Skipping Transfer Tax . . . . . . . . . . . 43 Schedule U—Qualified Conservation Easement Exclusion . . . . . . . . . . . . . 47 Contents Page Schedule PC—Protective Claim for Refund . . . . . . . . . 49 Continuation Schedule . . . . . . . 51 Index . . . . . . . . . . . . . . . . . . . . . 52 Checklist . . . . . . . . . . . . . . . . . . . 53 Future Developments For the latest information about developments related to Form 706 and its instructions, such as legislation enacted after they were published, go to IRS.gov/Form706. What's New Various dollar amounts and limitations in Form 706 are indexed for inflation. For decedents dying in 2021, the following amounts are applicable. • The basic exclusion amount is $11,700,000. • The ceiling on special-use valuation is $1,190,000. • The amount used in figuring the 2% portion of estate tax payable in installments is $1,590,000. • The basic credit amount is $4,625,800. The IRS will publish amounts for future years in annual revenue procedures. Reminders Schedule R-1 is now a separate form. Beginning in 2019, Schedule R-1 will no longer be part of Form 706; instead, you will need to obtain a separate Schedule R-1 to complete and file with Form 706. Identifying exhibits. Copies of tax returns filed with Form 706 must be identified as exhibits to the Form 706. General Instructions Purpose of Form The executor of a decedent's estate uses Form 706 to figure the estate tax imposed by chapter 11 of the Internal Revenue Code. This tax is levied on the entire taxable estate and not just on the share received by a particular beneficiary. Form 706 is also used to Sep 07, 2021 Cat. No. 16779E