Form 706: United States Estate (And Generation-Skipping Transfer) Tax Return

AAA

DEFINITION of 'Form 706: United States Estate (And Generation-Skipping Transfer) Tax Return'

A tax form distributed by the Internal Revenue Service (IRS) used by the executor of an estate to determine if any taxes are owed. Form 706 is to be completed by the executor if the decedent is a U.S. resident or citizen, and the decedent's gross estate is valued at over a certain value (adjusted periodically). Estate taxes are not levied on the pieces inherited by individual beneficiaries but on the estate as a whole. Form 706 is also used to calculate the generation-skipping transfer (GST) tax.

INVESTOPEDIA EXPLAINS 'Form 706: United States Estate (And Generation-Skipping Transfer) Tax Return'

Form 706 must be completed within nine months of the decedent's death unless the IRS has granted an extension. A six month extension can be requested through Form 4768. For decedent's who were neither U.S. citizens or residents at the time of death, executors should complete Form 706-NA.

RELATED TERMS
  1. IRS Publication 559: Survivors, ...

    A document published by the Internal Revenue Service (IRS) that ...
  2. Estate Tax

    A tax levied on an heir's inherited portion of an estate if the ...
  3. Beneficiary

    Anybody who gains an advantage and/or profits from something. ...
  4. Gross Estate

    The total dollar value of all property and assets in which an ...
  5. Generation-Skipping Trust

    A type of legally binding trust agreement in which the contributed ...
  6. Section 7702

    The section of the United States Internal Revenue Code that defines ...
Related Articles
  1. 6 Ways To Lose Your Estate
    Retirement

    6 Ways To Lose Your Estate

  2. 6 Estate Planning Must-Haves
    Retirement

    6 Estate Planning Must-Haves

  3. How To Choose The Right Executor For ...
    Retirement

    How To Choose The Right Executor For ...

  4. A Look At The Generation-Skipping Transfer ...
    Taxes

    A Look At The Generation-Skipping Transfer ...

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center