Form 706 (2019): U.S Estate & GST Tax Return
Checklist
This checklist is a structured reference for preparing a 2019 estate tax return using IRS Form
706 for a decedent who was a U.S. citizen or U.S. resident at death. It addresses federal estate tax computation, generation-skipping transfer reporting at death, and elections that affect estate tax liability and future estate planning.
Form 706 is filed under the authority of the Department of the Treasury and administered by the
Internal Revenue Service. It is separate from income tax filings and focuses on the gross estate, deductions, elections, and tax due under chapter 11 and chapter 13 rules.
Scope and Filing Context for 2019
For decedents dying in 2019, the exemption amount under federal estate tax rules determines whether filing is required. An estate tax return may still be filed when no tax is expected to be due to preserve elections, including the marital deduction or portability for a deceased spouse.
The filing process relies on fair market value at the date of death unless a valid election applies.
Accurate preparation supports estate planning, minimizes tax liability, and reduces the risk of issues during an IRS review.
Determining the Correct Return Type
Form 706 applies to estates of U.S. citizens and U.S. residents. Estates of nonresident noncitizens generally file Form 706-NA, which follows different filing thresholds and asset inclusion rules.
Using the wrong return can invalidate elections and delay processing. Confirming status at the outset avoids later correction through an amended Form 706.
Ten-Step Checklist for Completing Form 706 (2019)
Step 1: Confirm decedent status and filing requirement
Verify the decedent’s identity, residency, and citizenship at death. Determine whether the gross estate plus adjusted taxable gifts exceeds the exemption amount or whether filing is needed for an election.
If the decedent does not qualify for Form 706, switch to Form 706-NA. This decision affects all subsequent schedules and reporting.
Step 2: Establish executor authority and signature workflow
Identify the executor authorized by the probate court or governing documents. Ensure the signature workflow meets legal compliance requirements, whether using manual signing or a digital workflow.
The executor signs under penalties of perjury on behalf of the estate. Digital tools such as a
PDF editor or an eSignature API may be used if they comply with IRS standards.
Step 3: Compile the gross estate using fair market value
Inventory all decedent’s property includible in the gross estate, including real estate, financial accounts, and business interests. Each asset must be reported at fair market value as of the date of death unless an election applies.
Valuation records support estate tax liability calculations. Appraisals are commonly required for closely held assets and complex property interests.
Step 4: Gather ownership and beneficiary documentation
Collect deeds, account registrations, beneficiary designations, and trust instruments tied to decedent’s property. These records confirm asset classification and prevent duplication across schedules.
Life insurance documentation, including Federal Form 712 or Form 712 Life Insurance
Statement, is required when proceeds are includible. Accurate records protect confidential information and support review.
Step 5: Prepare asset schedules correctly
Report assets on the appropriate schedules, including Schedule D for insurance, Schedule E for jointly owned property, Schedule F for miscellaneous assets, and Schedule G for certain lifetime transfers includible in the estate.
Each schedule subtotal must reconcile to the gross estate total. Proper scheduling reduces errors during IRS processing at the Cincinnati campus or the Kansas City (State of Missouri)
locations.
Step 6: Reconcile gift tax history and prior filings
Obtain copies of Form 709 to account for prior taxable gifts that affect the estate tax calculation.
Adjusted taxable gifts must be incorporated into the computation even when the gift tax was previously paid.
This reconciliation ensures the correct application of the tax rate and unified credit. Missing gift history can distort tax due calculations.
Step 7: Apply the Marital Deduction and portability election
Identify property passing to a surviving spouse and determine eligibility for the Marital
Deduction. Complete the marital schedule consistently with other asset schedules.
If electing portability, complete the required section to transfer the unused exclusion to the deceased spouse’s survivor. Timely filing is critical to preserve this election.
Step 8: Report generation-skipping transfer items when applicable
Determine whether any generation-skipping transfer occurs at death, such as direct skips to skip persons. Complete Schedule R-1 and related sections only when GST tax applies.
GST exemption allocation should align with Chapter 13 rules. Estates without GST events should not complete these schedules.
Step 9: Calculate tax and review elections
Compute federal estate tax in accordance with the Instructions for Form 706 and 2019 rules under the Tax Cuts and Jobs Act framework. Confirm deductions, credits, and elections are reflected consistently.
If special elections apply, ensure supporting documentation is attached. Errors at this stage may require filing an amended Form 706.
- Full IRS transcript retrieval (Wage & Income + Account)
- Professional tax form review
- Preparation & filing support
- Tax relief options if you owe the IRS
Step 10: Assemble, file, and document timely filing
Assemble the complete return, including all schedules, elections, and attachments, in proper order. File by the deadline, generally nine months from the date of death, or request an extension using Form 4768.
Use timely mailing as the timely filing rules and approved Private Delivery Service options.
Retain proof of filing and payment for estate records.
Deductions, Insurance, and Special Items
Estate deductions reduce the taxable estate when properly documented. Debts, expenses, and administration costs must align with reported assets to avoid mismatches.
Life insurance proceeds are includible in the estate and require Form 712 reporting. Schedule D must reflect correct ownership and incidents of ownership at death.
State-Level and Related Considerations
Some estates also file state-level estate tax returns, such as Form CT-706 NT or other
Connecticut estate filings. These state forms are separate from federal requirements but often rely on the same valuation base.
Coordination with state filings supports lien releases and compliance, including Connecticut
Estate Tax Lien procedures. Federal and state filings should be consistent where possible.
Final Review and Professional Support
Before submission, review totals, schedule consistency, and election accuracy. Confirm that confidential information is handled correctly and that all required signatures are present.
Estate tax matters often involve complex legal and tax issues. Consultation with a tax professional or legal advice provider is appropriate for estates involving significant value, GST tax exposure, or complex estate planning structures.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
