To determine whether you are required to file Form 706 or Form 706-NA, you need to consider the decedent's citizenship or residency status at the time of death and the value of the estate.
- Form 706:
- U.S. Citizens or Residents: If the decedent was a U.S. citizen or resident at the time of death, you must file Form 706 if:
- The gross estate, plus adjusted taxable gifts and specific exemption, exceeds $12,920,000 for decedents who died in 2023.
- The 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.
- Definition of Resident: For estate tax purposes, a resident is someone who had a domicile in the United States at the time of death. A domicile is acquired by living in a place for even a brief period, as long as there is no intention of moving from that place.
- Form 706-NA:
- Nonresidents Not Citizens (NRNC): If the decedent was neither domiciled in nor a citizen of the United States at the time of death, you must file Form 706-NA if:
- The value of the decedent’s U.S.-situated assets, together with the gift tax specific exemption and the amount of adjusted taxable gifts, exceeds $60,000.
- Special Considerations: Decedents who acquired U.S. citizenship solely by reason of being a citizen of a U.S. territory or by reason of birth or residence within a U.S. territory are not treated as U.S. citizens for estate tax purposes and should file Form 706-NA.
Summary:
- File Form 706 if the decedent was a U.S. citizen or resident and the estate exceeds the filing threshold or if you are electing DSUE.
- File Form 706-NA if the decedent was a nonresident not a citizen and the U.S.-situated assets exceed $60,000.
Sources:
§ 20.6018-1. Returns.
Publication 559 (2023)
§ 6018. Estate tax returns
Instructions for Form 706 (09/2023)
Instructions for Form 706-NA (10/2022)
