To secure a transfer certificate for a U.S. citizen, the personal representative of the decedent's estate must follow specific procedures. The transfer certificate is necessary to show that the decedent's estate is not subject to U.S. estate tax, and it may be required by banks or other financial institutions to transfer the decedent's assets.
- Filing Form 706NA: The personal representative may need to file Form 706NA, United States Estate (and Generation-Skipping Transfer) Tax Return, Estate of a nonresident not a citizen of the United States. This form is used to obtain the transfer certificate. The purpose of the certificate is to demonstrate that the decedent's estate is not subject to U.S. estate tax.
- Documentation Requirements: The personal representative must provide documentation proving their status. This documentation can include certified copies of wills or court orders designating the executor(s). Statements by executors attesting to their status are insufficient.
- Inventory and Liabilities: If the decedent was a U.S. citizen but not a resident of the United States, the personal representative must attach several documents to the return:
- A copy of the inventory of property and the schedule of liabilities, claims against the estate, and expenses of administration filed with the foreign court of probate jurisdiction, certified by a proper official of the court.
- A copy of the return filed under the foreign inheritance, estate, legacy, succession tax, or other death tax act, certified by a proper official of the foreign tax department, if the estate is subject to such a foreign tax.
- A certified copy of the will if the decedent died testate.
- Submission and Processing: The personal representative must submit the required forms and documentation to the IRS. The processing of the return will be delayed if these documents are not filed with the return.
- Requesting the Transfer Certificate: The personal representative should refer to the Instructions for Form 706NA for detailed information on how to request the transfer certificate. The certificate is issued by the IRS to allow the transfer of the decedent's property to the person entitled to it, indicating that the estate has met its U.S. estate tax liabilities.
By following these steps and ensuring all required documentation is properly submitted, the personal representative can secure a transfer certificate for a U.S. citizen decedent's estate.
Sources:
Instructions for Form 706 (09/2023)
Publication 559 (2023)
Notice 2017-15
