OVERVIEW

Overview

The estate tax return’s design provides an ideal format to analyze and explain the estate tax and the proper technique for preparation of the return.

The estate tax is imposed on the decedent’s taxable estate. The estate tax return (Form 706) is designed to determine the taxable estate and to provide the format for determining the tax. Form 706 is also designed to determine the amount of the direct skip generation-skipping transfers occurring at death of the transferor and the amount of the generation-skipping transfer (GST) tax on those transfers.

Because of the various functions required of the return, Form 706 is titled the United States Estate (and Generation-Skipping Transfer) Tax Return. As a result of ongoing changes to this subject area and frequent cost-of-living adjustments, the Form 706 and Instructions to Form 706, as well as related forms and instructions are regularly updated. Be sure to check the IRS website for the most recent version of all forms.