What Happens to Your Estate Tax Return (Form 706) Account When You Die
Quick Facts
Federal threshold
$13.61M (2024)
Deadline
9 months after death
State thresholds
17 states lower
Step-by-Step Guide
Determine if estate exceeds $13.61M
The federal estate tax applies only if the gross estate exceeds the exemption amount ($13.61M for 2024). This includes all assets: real estate, investments, retirement accounts, life insurance, and business interests.
Check state estate/inheritance tax thresholds
17 states and DC have their own estate or inheritance taxes, many with much lower thresholds (e.g., Oregon $1M, Massachusetts $2M). Check your state even if federal filing is not required.
File within 9 months or request extension
Form 706 is due 9 months after the date of death. A 6-month extension is available by filing Form 4768, but any tax owed is still due at the 9-month mark.
Estimated time: Hire CPA/attorney
Portability election is critical
If the decedent was married and the estate is under the threshold, filing Form 706 to elect portability transfers the unused exemption to the surviving spouse. Without this election, the exemption is lost forever.
Document Now Checklist
- Inventory all assets and their fair market value at date of death
- Check if estate exceeds $13.61M federal threshold
- Identify your state's estate/inheritance tax threshold
- Discuss portability election with estate attorney if married
- Calendar the 9-month deadline from date of death
Last verified: June 2026. Platform policies may change. Verify current procedures directly with Estate Tax Return (Form 706). This guide is for informational purposes only and does not constitute legal advice.
Related Guides
Final Income Tax Return (Form 1040)
The final income tax return covers January 1 through the date of death. It must be filed by April 15 of the year after death. Late filing triggers penalties and interest.
Estate Income Tax (Form 1041)
Form 1041 is required if the estate generates more than $600 in gross income during any tax year while it remains open. Income includes interest, dividends, rent, and capital gains earned by estate assets after the date of death.
Step-Up in Basis — The Tax Break Families Miss
This is the most important tax concept for heirs. Do not sell ANY inherited asset before documenting its fair market value at the date of death.
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