Form 706 (2024): U.S Estate & GST Tax Return
Checklist
This checklist provides a comprehensive, accuracy-focused guide for preparing IRS Form 706,
United States Estate (and Generation-Skipping Transfer) Tax Return, for a decedent who was a
U.S. citizen or U.S. resident at death. Estate tax obligations, the applicable exemption amount, and credit calculations are determined by the law in effect for the year of death, not the year the estate tax return is filed.
Form 706 is also used to address certain generation-skipping transfer matters that arise at death. However, not all GST tax reporting is handled exclusively on the estate return, since some generation-skipping transfer tax return requirements apply at the trustee level depending on the transfer of property and the structure involved.
What this checklist covers and excludes
This checklist focuses exclusively on federal estate tax and GST tax concepts relevant to Form
706 and its schedules. Topics tied solely to income tax, such as credits or adjustments applicable to IRS Form 1040, do not apply within this filing process.
The checklist is designed to support the preparation, review, and assembly of the estate tax return. It does not replace the Form 706 instructions, authoritative guidance under chapters 11 or 13, or professional judgment on valuation, elections, or complex trust arrangements.
Ten-step Form 706 preparation checklist
Step 1: Confirm the correct return type and filing requirement
Confirm whether the decedent was a U.S. citizen or U.S. resident at death, which determines whether Form 706 or Form 706-NA applies. Evaluate whether a filing is required based on the applicable exemption level for the year of death and consider whether filing is necessary to elect portability for a deceased spouse.
The filing requirement analysis must reflect the year-of-death framework rather than later tax law changes. Even when no tax due is expected, filing may still be appropriate to preserve the deceased spousal unused exclusion amount for surviving spouses.
Step 2: Gather decedent and executor information
Collect the decedent’s identifying information, including full legal name, Social Security number, domicile, and date of death, and confirm consistency across documents. Verify the authority of the decedent’s executor and confirm that the individual signing understands the filing process and penalty-of-perjury standard.
Accurate intake at this stage prevents later corrections that can delay processing. Maintaining a clear record of decision makers and authorized signers supports orderly administration and review.
Step 3: Inventory the gross estate
Compile worldwide property interests includible in the gross estate for U.S. citizen or resident decedents. This generally includes real estate, business, and financial information; bank and brokerage accounts; trust interests; and property transferred through beneficiary designations.
Each asset should be mapped to the correct Form 706 schedule before entry begins. A structured inventory reduces the risk of omission and supports accurate estate planning analysis.
Step 4: Determine valuation approach and document support
Identify fair market value as of the date of death as the default valuation standard for estate tax purposes. If an alternate valuation election is available and beneficial, confirm eligibility and apply it consistently across all affected assets.
Valuation support should be traceable and clearly dated, particularly for real estate, closely held business interests, and unique assets. Well-documented valuations help defend reported amounts if reviewed and provide clarity for income tax basis determinations.
Step 5: Identify lifetime transfers, powers, and annuities
Review whether lifetime transfers trigger inclusion under federal estate tax rules and require reporting on Schedule G. This includes specific retained interests, life estate arrangements, and transfers subject to statutory inclusion provisions.
Determine whether Schedule H applies for general powers of appointment or whether Schedule
I applies for annuity interests held at death. Identifying these items early avoids rework during tax computation and GST analysis.
Step 6: Prepare the core form and compute the estate tax
Summarize gross estate totals from the schedules and apply allowable deductions, including the marital deduction and charitable deductions when applicable. Compute the taxable estate and apply the federal gift and estate tax rate in effect for the year of death.
Apply the exemption amount and the unified credit correctly to determine the net tax liability or the remaining exemption. These computations must align with the Tax Cuts and Jobs Act framework applicable at the time of death.
Step 7: Complete property schedules accurately
Complete Schedules A through F using the correct scope for each schedule, ensuring consistency with Form 706 instructions. Schedule C should report receivables and cash rather than liabilities, while Schedule E and Schedule F should reflect ownership structure and asset type.
Schedule D requires reporting of all life insurance policies on the decedent’s life, with inclusion of life insurance proceeds determined under estate tax rules rather than beneficiary designation alone. Supporting documents, such as a life insurance statement or Form 712, should be retained when required.
Step 8: Complete deductions and charitable reporting
Use Schedule J to report funeral expenses and administration expenses incurred in administering property subject to claims, including qualifying medical costs tied to estate settlement. Ensure deductions are correctly classified and supported by documentation.
Report charitable transfers on the appropriate schedule and confirm eligibility under federal estate tax rules. Deductible transfers must align with the governing instrument and applicable valuation rules.
Step 9: Review GST reporting requirements
Determine whether the generation-skipping transfer tax applies to direct skips occurring at death. Identify whether reporting belongs on Schedule R as part of the estate return or on
Schedule R-1 for trustee-level reporting.
Confirm GST exemption allocation decisions and compliance with section 2612 and related provisions. Proper GST reporting is essential for dynasty trusts, trust distributions, and trust terminations involving skip persons.
- 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, sign, and file the return
Tie out all schedule totals to the tax computation section and confirm consistency across the return. Attach required supporting documents and ensure the authorized fiduciary signs the estate tax return.
Verify the current IRS filing address and retain proof of mailing along with a complete copy of the filed return. Accurate assembly supports efficient processing and later correspondence.
Final quality-control notes
A final review should confirm that Schedule D includes all life insurance policies, Schedule C reflects only receivables and cash, and Schedule I is limited to annuities. GST reporting should align with the specific facts, trust structures, and generation-skipping transfer tax return requirements rather than assumptions.
Estate tax filings often intersect with broader estate planning goals, including asset protection provisions, trust arrangements, and long-term wealth transfer strategies. High-net-worth estates and estates involving retained annuity trusts, QTIP trusts, Crummey trust structures, or complex
GST exemption planning often benefit from review by a tax professional or estate attorney.
Careful documentation, supported by authoritative resources such as Internal Revenue Code provisions, Bloomberg Tax Portfolio analysis, and current administrative guidance, helps manage tax liability and protect the estate during and after the filing process.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
