Updated October 8, 2026. Quick answer: Form 706 is the federal estate tax return, filed by the executor. For decedents who died in 2026, it must be filed when the gross estate, plus adjusted taxable gifts and specific exemption, is more than $15,000,000 or when the executor elects portability of the deceased spousal unused exclusion (DSUE) amount, whatever the size of the estate. It is due within 9 months of death, with an automatic 6-month extension on Form 4768.
IRS trust and estate tax forms, read line by line: Form 8855 when and where to file.
IRS estate-administration forms, read line by line: Form 56 lines 3 to 5, Form 8971 Part I and Form 8971 Part II.
Form 1041 (estate and trust income tax return), read line by line: Form 1041 lines 10 to 12, Form 1041 lines 13 and 14, Form 1041 Schedule G Part I lines 4 to 9 and Form 1041 Schedule G Part II lines 10 to 19.
Form 709 (gift tax return), read line by line: Form 709 Schedule A Part 3 indirect skips, Form 709 Schedule A Part 4 lines 1 to 12, Form 709 Schedule B and Form 709 Schedule C.
Form 706 (estate tax return), read line by line: Form 706 Part I lines 1 to 14, Form 706 Part II lines 1 to 8, Form 706 Part II lines 9 to 12 and Form 706 Part II lines 13 to 23.
More IRS forms and schedules, read line by line: Form 1128 instructions, Form 8821 instructions and Form 4506-T instructions.
More IRS forms and schedules, read line by line: Form 3520 instructions.
Related reading on this site: Form 1041 due date and extension and Form 706 due date and extension.
More IRS forms and schedules, read line by line: Form 8971 instructions.
What Form 706 is and who files
The IRS describes the purpose this way: “The executor of a decedent’s estate uses Form 706 to figure the estate tax imposed by chapter 11 of the Internal Revenue Code.” “This tax is levied on the entire taxable estate and not just on the share received by a particular beneficiary.” The same form also reports generation-skipping transfer tax on direct skips.
On who files: “For decedents who died in 2026, Form 706 must be filed by the executor of the estate of every U.S. citizen or resident:” “Whose gross estate, plus adjusted taxable gifts and specific exemption, is more than $15,000,000; or” “Whose executor elects to transfer the deceased spousal unused exclusion (DSUE) amount to the surviving spouse, regardless of the size of the decedent’s gross estate.”
Executors have a defined meaning: “The term “executor” includes the executor, personal representative, or administrator of the decedent’s estate.” For decedents who were neither citizens nor residents, “file Form 706-NA”.
The size test, step by step
To apply the first test the instructions say to add three things: “The adjusted taxable gifts (as defined in section 2503) made by the decedent after December 31, 1976;” “The total specific exemption allowed under section 2521” for gifts after September 8, 1976; and “The decedent’s gross estate valued as of the date of death.”
The following is an illustration with made-up amounts, not an IRS example:
| Illustration (made-up amounts) | Total, computed here | Result under the printed test |
|---|---|---|
| Gross estate $14,000,000 plus adjusted taxable gifts $2,000,000 | $16,000,000 | Above $15,000,000: filing required |
| Gross estate $12,000,000 plus adjusted taxable gifts $1,500,000 | $13,500,000 | Not above $15,000,000: no filing requirement by size |
In the illustration, $14,000,000 plus $2,000,000 is $16,000,000 and that is above the printed $15,000,000. The second case, $12,000,000 plus $1,500,000 is $13,500,000 and that is not. What the gross estate includes is broader than probate property. The instructions list “Certain life insurance proceeds (even though payable to beneficiaries other than the estate)”, annuities, jointly owned property and more. The 2026 inflation-adjusted figures on the cover page are “The basic exclusion amount is $15,000,000.” For how that number is used going forward, see the 2027 estate tax exemption, the lifetime gift and estate tax exemption and the estate tax calculator. State-level estate taxes are separate; see estate tax by state.
Portability and the DSUE election
Portability lets a surviving spouse use what the first spouse did not. “If the executor of the decedent’s estate elects transfer, or portability, of the DSUE amount, the surviving spouse can apply the DSUE amount” against later gift and estate tax. It requires a return: “A timely filed and complete Form 706 is required to elect portability of the DSUE amount to a surviving spouse.” “The filing requirement applies to all estates of decedents choosing to elect portability of the DSUE amount, regardless of the size of the estate.”
This is the instructions’ own answer to whether a small estate should file. A return is required to make the election, and the instructions note the reverse also holds: “If no return is required under section 6018(a), not filing Form 706 will avoid making the election.” The election is also hard to undo: “A portability election is irrevocable, unless an adjustment or amendment to the election is made on a subsequent return filed on or before the due date.”
The DSUE amount itself is defined as “the lesser of (a) the basic exclusion amount in effect on the date of death of the decedent whose DSUE is being figured, or (b) the decedent’s applicable exclusion amount less the amount on Part II, line 5”. A smaller estate filing only for portability gets a relaxed valuation rule for some marital and charitable property, which the executor can estimate in ranges under the instructions’ Table of Estimated Values. For why the election does not happen on its own, see portability is not automatic.
Schedules A through I and the Part V recap
Part V is the summary of the gross estate. The instructions require that “You must make an entry in each of items 1 through 9.” “Entering zero for any of items 1 through 9 is a statement by the executor, made under penalties of perjury, that the gross estate does not contain any includible assets covered by that item.”
The schedules that support those items run in this order:
| Schedule | Subject |
|---|---|
| A | Real estate |
| B | Stocks and bonds |
| C | Mortgages, notes and cash |
| D | Insurance on the decedent’s life |
| E | Jointly owned property |
| F | Other miscellaneous property |
| G | Transfers during the decedent’s lifetime |
| H | Powers of appointment |
| I | Annuities |
Schedule F always travels with the return: “Schedule F (Form 706). Answer its questions even if you report no assets on it.” Others depend on what the estate holds. For instance, “Schedule D (Form 706), if the gross estate includes any life insurance”. Property sold or passed to heirs gets a new basis, and the pages on how a step-up can also be a step-down and why an IRA never gets a step-up explain what the schedule values mean for income tax later. The estate’s own income tax return is a different form, covered on Form 1041 for estates.
Part II: the tax computation
The tax is not figured on the share any one person receives. “In general, the estate tax is figured by applying the unified rates shown in Table A to the total of transfers both during life and at death”, and then “subtracting the gift taxes, as refigured based on the date of death rates.”
Table A runs from 18% on the first $10,000 up through 40% on amounts over $1,000,000 with a printed base tax of $345,800. The instructions give a credit figure for 2026 as well: “The basic credit amount is $5,945,800.” Line 1 uses the date-of-death value unless alternate valuation was elected, and a state death tax deduction is allowed on line 3b: “You may take a deduction on line 3b for estate, inheritance, legacy, or succession taxes paid on any property included in the gross estate”. For lifetime gifts that feed the computation, see the gift tax limit, who must file Form 709 and the Form 709 due date.
Alternate valuation and other executor elections
Part III collects the executor’s elections. The default valuation date is death: “Unless you elect at the time the return is filed to adopt alternate valuation, as authorized by section 2032, value all property included in the gross estate as of the date of the decedent’s death.” “Alternate valuation cannot be applied to only a part of the property.”
There is a limit on when it is allowed: “You may not elect alternate valuation unless the election will decrease both the value of the gross estate and the sum (reduced by allowable credits) of the estate and GST taxes payable by reason of the decedent’s death”. Once chosen, “Once made, the election may not be revoked.” Property disposed of within 6 months after death is generally valued on the date of the disposition, per the instructions.
Due date, extension and payment
The timing rule: “You must file Form 706 to report estate and/or GST tax within 9 months after the date of the decedent’s death.” “Use Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes, to apply for an automatic 6-month extension of time to file.” Payment is a separate clock: “The estate and GST taxes are due within 9 months of the date of the decedent’s death.” The deadline details, including what happens when a due date lands on a weekend, are on the estate tax return deadline page.
For estates that missed the portability deadline, the instructions describe a later route: “Executors filing to elect portability may now file Form 706 on or before the fifth anniversary of the decedent’s death.” It applies to “Executors who did not have a filing requirement under section 6018(a)”. Late filing and late payment carry penalties unless there is reasonable cause.
Which revision applies
The edition read for this page is the Instructions for Form 706 (Rev. July 2026), which is the revision irs.gov served when it was read for this page. Its cover limits it to decedents dying after December 31, 2025, and the form itself is a separate document with its own revision date. For an earlier date of death, use the revision the IRS lists for that period. “For the latest information about developments related to Form 706 and its instructions, such as legislation enacted after they were published, go to IRS.gov/Form706.” The blank Form 706 itself carries a separate revision date (August 2025 on the copy read), so line wording on the form and in the instructions can differ in small ways.
Every Form 706 part and schedule page in one table
Each row links to the page that reads a part or schedule of Form 706. The right column is the summary each page carries.
| Page | What it covers |
|---|---|
| Form 706 Part I: Decedent and Executor, Lines 1 to 14 | What goes on Form 706 Part I, lines 1 to 14: the decedent’s name, SSN and domicile, the executor, the court, and the boxes for the will and death certificate. |
| Form 706 Part II Lines 1 to 8: Gross Estate to Estate Tax | How Form 706 Part II lines 1 to 8 work: gross estate, deductions, state death tax deduction, adjusted taxable gifts, Table A tax and gift tax paid. |
| Form 706 Part II Lines 9 to 12: Credit and Exclusion Amount | How Form 706 Part II lines 9a to 12 work: basic exclusion amount, DSUE, restored exclusion, applicable credit, the line 10 adjustment. |
| Form 706 Part II Lines 13 to 23: Credits, Tax Due, Refund | How Form 706 Part II lines 13 to 23 work: credits, GST tax, prior payments, tax due, overpayment and direct deposit. |
| Form 706 Part III: Elections by the Executor Line by Line | What Form 706 Part III asks the executor to elect: alternate valuation, special-use valuation, section 6166 and section 6163. |
| Form 706 Parts IV and V: General Information and Recap | What goes on Form 706 Part IV (marital status, beneficiaries, yes or no questions) and Part V (gross estate and deduction totals from the schedules). |
| Form 706 Part VI: Portability of the DSUE Amount | How Form 706 Part VI works: electing portability of the DSUE amount, opting out, the QDOT question, Section C and Section D. |
| Form 706 Schedule A: Real Estate Line by Line (2026) | What goes on Form 706 Schedule A: real estate the decedent owned or contracted to buy, how to describe each parcel, and where the total goes on Part V. |
| Form 706 Schedule B: Stocks and Bonds Line by Line (2026) | What goes on Form 706 Schedule B: stocks and bonds in the gross estate, the details each needs, how fair market value is figured, and where the total goes. |
| Form 706 Schedule C: Mortgages, Notes and Cash (2026) | What goes on Form 706 Schedule C: mortgages and notes payable to the decedent, contracts to sell land, and cash, in the reporting order the instructions set. |
| Form 706 Schedule D: Life Insurance Line by Line (2026) | What goes on Form 706 Schedule D: every policy on the decedent’s life, what the gross estate includes, incidents of ownership, and Form 712. |
| Form 706 Schedule E: Jointly Owned Property (2026) | What goes on Form 706 Schedule E: property held as joint tenants with survivorship or by the entirety, Part I versus Part II, and percentage includible. |
| Form 706 Schedule F: Other Miscellaneous Property (2026) | What goes on Form 706 Schedule F: gross estate property not on another schedule, from business interests and digital assets to vehicles and household goods. |
| Form 706 Schedule G: Lifetime Transfers Line by Line (2026) | What goes on Form 706 Schedule G: the five kinds of lifetime transfers the instructions list, how to describe and value them, and what to attach. |
| Form 706 Schedule H: Powers of Appointment (2026) | What goes on Form 706 Schedule H: property over which the decedent held a general power of appointment, what counts as a power, and what must be attached. |
| Form 706 Schedule I: Annuities Line by Line (2026) | What goes on Form 706 Schedule I: which annuities the instructions say to list, how to describe each one, the lump-sum line, and where the total goes. |
| Form 706 Schedules J and L: Expenses and Losses (2026) | What goes on Form 706 Schedules J and L: funeral and administration expenses, commissions, attorney fees, net losses, and where the totals go. |
| Form 706 Schedule M: Bequests to a Surviving Spouse (2026) | What goes on Form 706 Schedule M, the marital deduction schedule: what may be listed, QTIP and QDOT elections, lines 1, 3, 4 and 13, and attachments. |
| Form 706 Schedule O: Charitable, Public and Similar Gifts | What goes on Form 706 Schedule O, the charitable deduction schedule: who qualifies, the reduction rule, disclaimers, attachments and the total. |
| Form 706 Schedules P and Q: Credits Line by Line (2026) | What goes on Form 706 Schedules P and Q: the foreign death tax credit, lines 6 to 9, Form 706-CE, and the credit for tax on prior transfers. |
| Form 706 Schedule R: Generation-Skipping Transfer Tax | What goes on Form 706 Schedule R and R-1: identifying direct skips, which schedule to use, GST exemption allocation and where the tax goes. |
| Form 706 Schedules T and U: Special Use and Easement | What goes on Form 706 Schedules T and U: the special-use valuation election (formerly Schedule A-1) and the conservation easement exclusion. |
| Form 706-NA (2026): Nonresident Estate Tax Return Explained | Form 706-NA explained: who files for a nonresident not a citizen, the 9 month due date, where to file, attachments, and how the five parts fit together. |
Common mistakes
- Treating the $15,000,000 test as a gross estate test only. The instructions add adjusted taxable gifts and specific exemption to the gross estate before comparing.
- Assuming portability happens automatically. The instructions require a timely filed and complete Form 706, whatever the size of the estate, and the election is irrevocable after the due date.
- Entering a blank where there is nothing. Entering zero on items 1 through 9 is a statement made under penalties of perjury that the gross estate has no includible assets of that type.
Related: estate tax return deadline, 2027 estate tax exemption, portability is not automatic, and who must file Form 709.
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Answer againSources
- Instructions for Form 706 (Rev. July 2026): https://www.irs.gov/pub/irs-pdf/i706.pdf
- Form 706 (Rev. August 2025): https://www.irs.gov/pub/irs-pdf/f706.pdf
Read from the IRS documents linked above on October 8, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.