A Form 706 is a form published by the IRS. It is called a United States Estate (and Generation –Skipping Transfer) Tax Return. The purpose of the form according to the IRS is “[t]he 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. Form 706 is also used to figure the generation-skipping transfer (GST) tax imposed by Chapter 13 on direct skips (transfers to skip persons of interests in property included in the decedent's gross estate).” For 2013, the exemption from the estate tax is equal to $5,250,000.00 for each spouse.
Issues related to this form are complicated, and if you are a trustee of personal representative of large estate, you need someone who is aware of the issues. For more information, contact Cody & Linde, PLLC today!