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. Gross Estate

    The total dollar value of all property and assets in which an ...
  4. Beneficiary

    Anybody who gains an advantage and/or profits from something. ...
  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. Retirement

    6 Ways To Lose Your Estate

    Find out why you shouldn't put off putting your affairs in order.
  2. Retirement

    6 Estate Planning Must-Haves

    You need an estate plan even if you don't have significant assets. Learn what you need to include in yours.
  3. Retirement

    How To Choose The Right Executor For Your Estate

    Making a careful choice now can save your heirs from a lot of problems later.
  4. Taxes

    A Look At The Generation-Skipping Transfer Tax

    For those who encounter this tax, it can be costly. Find out how to navigate this complicated tax arrangement.
  5. Personal Finance

    Get Ready For The Estate Tax Phase-Out

    Changes to federal legislation will affect how your assets are treated once you're gone - be prepared.
  6. Investing Basics

    Are arm's length transactions always better than transactions not at arm's length?

    Transactions not at arm's length have real tax and other consequences for individuals and businesses, but they are not necessarily always worse.
  7. Taxes

    What are the best ways to lower my taxable income?

    Paying taxes is an unavoidable obligation each year, but individuals and business owners can take advantage of various strategies for tax savings.
  8. Budgeting

    Can trust funds be activated before the grantor intended?

    Trust law gives the grantor specific rights over the release of assets and therefore it is not possible to change the stipulations without his or her consent.
  9. Taxes

    If I reinvest my dividends, are they still taxable?

    Take a brief look at how the Internal Revenue Service taxes different kinds of dividends, including taxation on dividends that are reinvested.
  10. Retirement

    What are the keys to setting up a trust fund?

    Setting up a trust to secure your assets for a beneficiary allows you to set the terms under which the beneficiaries are allowed to access these assets.

You May Also Like

Hot Definitions
  1. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  2. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  3. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  4. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  5. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  6. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
Trading Center