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. Gross Estate

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

    A type of legally binding trust agreement in which the contributed ...
  4. Estate Tax

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

    Anybody who gains an advantage and/or profits from something. ...
  6. Form 8949

    An Internal Revenue Service form implemented in tax year 2011 ...
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 ...

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center