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figure the generation-skipping transfer (GST) tax imposed by chapter 13 on direct skips (transfers to skip persons of interests in property included in the decedent's gross estate). Which Estates Must File For decedents who died in 2021, Form 706 must be filed by the executor of the estate of every U.S. citizen or resident:

a. Whose gross estate, plus adjusted taxable gifts and specific exemption, is more than $11,700,000; or

b. Whose executor elects to transfer the deceased spousal unused exclusion (DSUE) amount to the surviving spouse, regardless of the size of the decedent's gross estate. See the instructions for Part 6—Portability of Deceased Spousal Unused Exclusion, later, and sections 2010(c)(4) and (c)(5). To determine whether you must file a return for the estate under (a) above, add: 1. The adjusted taxable gifts (as defined in section 2503) made by the decedent after December 31, 1976; 2. The total specific exemption allowed under section 2521 (as in effect before its repeal by the Tax Reform Act of 1976) for gifts made by the decedent after September 8, 1976; and 3. The decedent's gross estate valued as of the date of death. Gross Estate The gross estate includes all property in which the decedent had an interest (including real property outside the United States). It also includes: • Certain transfers made during the decedent's life without an adequate and full consideration in money or money's worth, • Annuities, • The includible portion of joint estates with right of survivorship (see the instructions for Schedule E), • The includible portion of tenancies by the entirety (see the instructions for Schedule E), • Certain life insurance proceeds (even though payable to beneficiaries other than the estate) (see the instructions for Schedule D), • Property over which the decedent possessed a general power of appointment, • Dower or curtesy (or statutory estate) of the surviving spouse, and • Community property to the extent of the decedent's interest as defined by applicable law. Note. Under the special rule of Regulations section 20.2010-2(a)(7)(ii), executors of estates who are not required to file Form 706 under section 6018(a), but who are filing to elect portability of the DSUE amount to the surviving spouse, are not required to report the value of certain property eligible for the marital deduction under section 2056 or 2056A or the charitable deduction under section 2055. However, the value of those assets must be estimated and included in the total value of the gross estate. See the instructions for Part 5—Recapitulation, lines 10 and 23, later, for more information. For more specific information, see the instructions for Schedules A through I. U.S. Citizens or Residents; Nonresident Noncitizens File Form 706 for the estates of decedents who were either U.S. citizens or U.S. residents at the time of death. For estate tax purposes, a resident is someone who had a domicile in the United States at the time of death. A person acquires a domicile by living in a place for even a brief period of time, as long as the person had no intention of moving from that place. Decedents who were neither U.S. citizens nor U.S. residents at the time of death file Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return, Estate of nonresident not a citizen of the United States. Residents of U.S. Possessions All references to citizens of the United States are subject to the provisions of sections 2208 and 2209, relating to decedents who were U.S. citizens and residents of a U.S. possession on the date of death. If such a decedent became a U.S. citizen only because of his or her connection with a possession, then the decedent is considered a nonresident not a citizen of the United States for estate tax purposes, and you should file Form 706-NA. If such a decedent became a U.S. citizen wholly independently of his or her connection with a possession, then the decedent is considered a U.S. citizen for estate tax purposes, and you should file Form 706. Executor The term “executor” includes the executor, personal representative, or administrator of the decedent's estate. If none of these is appointed, qualified, and acting in the United States, every person in actual or constructive possession of any property of the decedent is considered an executor and must file a return. Executors must provide documentation proving their status. Documentation will vary but may include documents such as a certified copy of the will or a court order designating the executor(s). A statement by the executor attesting to their status is insufficient. When To File You must file Form 706 to report estate and/or GST tax within 9 months after the date of the decedent's death. If you are unable to file Form 706 by the due date, you may receive an extension of time to file. Use Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes, to apply for an automatic 6-month extension of time to file. Portability election. An executor can only elect to transfer the DSUE amount to the surviving spouse if the Form 706 is filed timely, that is, within 9 months of the decedent's date of death or, if you have received an extension of time to file, before the 6-month extension period ends. Extension to elect portability. Executors who did not have a filing requirement under section 6018(a) but failed to timely file Form 706 to make the portability election may be eligible for an extension under Rev. Proc. 2017-34, 2017-26 I.R.B. 1282. Executors filing to elect portability may now file Form 706 on or before the second anniversary of the decedent’s death. An executor wishing to elect portability under this extension must state at the top of the Form 706 being filed that the return is “Filed Pursuant to Rev. Proc. 2017-34 to Elect Portability under 2010(c)(5)(A).” For more information on this extension, see Rev. Proc. 2017-34. Note. Any estate that is filing an estate tax return only to elect portability and did not file timely or within the extension provided in Rev. Proc. 2017-34 may seek relief under Regulations section 301.9100-3 to make the portability election. Where To File File Form 706 at the following address. -2- Instructions for Form 706 (Rev. 09-2021)