Form 706 (2015): U.S Estate & GST Tax Return
Checklist
This checklist explains how to prepare Form 706 for decedents who died in 2015, using the
August 2015 revision. Form 706 is used to calculate Estate Taxes and, when applicable,
Generation-Skipping Transfer Taxes based on the taxable estate and date-of-death values.
The return is filed by the executor or other person treated as executor under federal tax law. It applies only to estate tax purposes and should not be confused with income tax filings or later-law concepts that do not apply to the 2015 filing year.
Year-Specific Rules for 2015 Estates
For deaths occurring in 2015, the estate tax exemption amount is $5,430,000, which determines whether Form 706 must be filed. A return may still be required even if no tax is due if the estate elects to port the deceased spousal unused exclusion amount.
Form 706 also governs reporting for generation-skipping transfer situations involving direct skips. GST reporting applies only when the estate includes GST-relevant transfers and is not automatic for all United States Estate filings.
Filing Responsibility and Scope
Form 706 is filed for estate tax purposes, not for gift tax reporting or income tax reconciliation. It must reflect the gross estate, allowable deductions, and elections under the rules in effect as of
June 2015.
The 2015 instructions include administrative changes relevant to consistent basis reporting and estate tax closing letters. These updates affect subsequent reporting purposes and should be applied carefully when completing IRS forms for the estate.
Ten-Step Checklist for Completing Form 706 (2015)
Step 1: Identify the decedent and determine the filing requirement
Confirm the decedent’s name, Social Security number, and date of death. Determine whether the gross estate, adjusted taxable gifts, and applicable exclusion exceed the estate tax exclusion or whether filing is required to elect portability.
If the decedent was not a U.S. citizen or resident, Form 706-NA applies instead. Residency status directly affects filing eligibility and estate tax purposes.
Step 2: Confirm executor authority and signing requirements
Identify the executor or person treated as executor under the instructions. Documentation such as Wills or court appointment records should support the authority to complete Form 706.
Only one executor's signature is required, even when multiple executors exist. All listed executors remain responsible for the return as filed with the Internal Revenue Service.
Step 3: Inventory the gross estate and assign schedules
Compile records for all assets included in the gross estate, including real estate, stocks and bonds, cash accounts, business interests, and life insurance. Assets must be reported at fair market value as of the date of death unless a valid election applies.
Use the appropriate schedules to report each asset category. Accurate classification supports proper valuation and later consistent basis reporting.
Step 4: Reconcile lifetime transfers and gift tax history
Obtain copies of all gift tax returns filed during the decedent’s lifetime. Adjusted taxable gifts must be calculated using the required worksheets rather than restating every historical gift.
Transfers includible under estate tax rules are reported on Schedule G. Schedule F is reserved for miscellaneous property and should not be used for lifetime gift reporting.
Step 5: Apply the marital deduction and portability election
Identify property passing to a surviving spouse and determine whether it qualifies for the marital deduction. Schedule M must clearly show qualifying assets and any elections applied.
If electing portability, complete the designated section of Form 706 accurately and file by the
Filing Deadline. Timely filing is required to transfer the unused exclusion amount.
Step 6: Report charitable transfers and deductions
Compile documentation for philanthropic bequests made by the estate. Schedule O is used to identify beneficiaries and amounts that qualify for deduction.
Only qualifying transfers under estate tax rules are deductible. Proper documentation supports enforcement purposes and audit review.
Step 7: Deduct debts, expenses, and administration costs
Report funeral and administration expenses on Schedule J. Mortgages, liens, and debts of the decedent belong on Schedule K.
Use Schedule L only for net losses during administration when applicable. Each deduction must be supported and connected to estate tax purposes.
Step 8: Compute GST tax only when applicable
Determine whether the estate includes generation-skipping transfer events such as direct skips.
GST schedules apply only when these transfers exist.
Apply GST exemption and tax rules carefully. Estates without GST-relevant transfers should not complete GST schedules.
Step 9: Make valuation elections and attach support
Apply alternate valuation or special-use valuation only when permitted and beneficial. Elections must be applied consistently across the return.
Attach appraisals and documentation for special-use valuation or hard-to-value assets. Form
706-A is not used to make the election and applies only to recapture events later.
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Step 10: Assemble, attach, and file the return
Assemble Form 706 with all required schedules and attachments, including the death certificate and executor documentation. Review the return for completeness before signing.
File the return with the Internal Revenue Service Center in Cincinnati, Ohio, as specified in the
2015 instructions. The filing address does not change based on payment method.
Form-Specific Updates and Administrative Notes for 2015
The 2015 version of Form 706 introduced structural changes related to portability and exclusion calculations. These updates affect how taxable estates compute credits and report the basis of property acquired.
The instructions also address consistent basis reporting and changes to closing letters. Estates must follow these rules for subsequent reporting purposes, including filing Form 8971 when required.
Final Notes for Executors and Advisors
This checklist applies only to estates of decedents who died in 2015 and reflects the rules in effect under federal tax law at that time. It does not incorporate later changes or income tax concepts that fall outside estate tax reporting.
Careful completion of Form 706 reduces the risk of substantial penalties and supports accurate administration of taxable estates. Executors should retain copies of all IRS forms, schedules, and PDF file submissions for recordkeeping and future reference.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
