An IRS Form 706 is used by taxpayers to report United States estate and generation skipping transfer taxes. The form is filed by the executor of a deceased person’s estate if that person has a taxable estate worth at least $5.43 million or the executor wants to pass any unused exclusion amounts to the decedent’s surviving spouse. For an executor the Form 706 can help him or her establish what the value of the estate is. The Form 706 is also used for the generation-skipping transfer tax that is used to prevent people from being able to avoid estate taxes by “skipping” a generation. This article also discusses certain “Social Security secrets” that people should not overlook.
See Chuck Saletta, Why Would You Need Form 706?, The Motley Fool, November 1, 2015.
