Estate Tax Form 706: 2024 Exclusion, Credit, and Rates

Do you need to file Form 706 for federal estate tax? Start with a simple test. If the person who died in the United States 🇺🇸 in 2024 left a taxable estate worth more than $13,610,000, the estate likely needs to file Form 706. If the estate is below that amount after allowed deductions, there’s usually no federal estate tax, and filing is typically not required.

Quick Yes/No Eligibility Check for Federal Estate Tax Filing (Form 706)

• Yes, filing is likely required if:
  • The decedent’s taxable estate plus adjusted lifetime taxable gifts exceed $13,610,000 in 2024.
  • The estate intends to claim portability of the deceased spouse’s unused exemption (DSUE), even if the estate is under the threshold.

• No, filing is usually not required if:
  • The taxable estate plus adjusted lifetime taxable gifts are less than or equal to $13,610,000 for a 2024 death, and the executor will not elect portability.

To file, the executor uses Form 706, the United States Estate (and Generation-Skipping Transfer) Tax Return. You can find it on the IRS website or go directly to About Form 706.

What Counts Toward the Filing Threshold

The taxable estate equals the gross estate minus allowed deductions.

• Gross estate typically includes:
  • Real estate, bank accounts, retirement assets, stocks and bonds, business interests
  • Certain life insurance proceeds
  • Personal property
• Allowed deductions can include:
  • Debts, mortgages, and final expenses
  • Charitable gifts
  • Transfers to a surviving spouse (marital deduction)

An estate is over the threshold if the taxable estate plus any lifetime taxable gifts (after the annual gift exclusion) exceed $13,610,000. Any applicable credit used during life to cover gift tax reduces the credit later available against the estate tax.

Key 2024 Numbers You Must Know

• Applicable exclusion: $13,610,000 (covers taxable gifts during life and the estate at death)
• Applicable credit: $5,389,800 (the credit that offsets gift and estate tax)
• Top estate tax rate: 40%
• Annual gift exclusion: $17,000 per recipient (gifts at or below this amount per person per year are generally not taxable)

According to analysis by VisaVerge.com, most families never file for estate tax because the exclusion amount is so high, and because transfers to a spouse or charity usually eliminate tax.

When the Gift Tax Matters for Eligibility

The gift tax applies to lifetime transfers of money or property. Most routine gifts are not taxed because of the annual gift exclusion and specific exceptions (for example, payments made directly to schools or medical providers).

• Larger gifts above the annual exclusion count against your lifetime exemption.
• If you used part of your lifetime exemption for gifts, that reduces what’s left at death.

Example:
– You gave a child $1,017,000 in total taxable gifts (after applying annual exclusions). Your remaining estate exemption would be $12,593,000 in 2024. If your estate is worth more than that, Form 706 filing is likely required.

When the Generation-Skipping Transfer Tax Can Trigger Filing

A generation-skipping transfer (GST) is a gift or bequest to someone more than one generation below you, such as a grandchild. A separate GST tax can apply on top of the estate or gift tax. Form 706 also reports GST matters at death.

You may need to:
– Allocate GST exemption
– Report GST tax due
– File Form 706 even if the estate is below the estate tax exclusion, depending on GST allocations and elections

Examples That Clarify Eligibility

• Example 1: Gross estate = $12,000,000. Deductible debts = $500,000 and charitable bequest = $1,000,000. Taxable estate = $10,500,000. Assuming no large lifetime taxable gifts, no federal estate tax filing is required unless the executor wants to elect portability.

• Example 2: Gross estate = $9,000,000. Lifetime taxable gifts totaled $6,000,000. After deductions, the combined total exceeds the $13,610,000 exclusion, so a filing is required and tax may be due.

• Example 3: Decedent leaves $5,000,000 to grandchildren in trust. Even if there’s no estate tax due, GST reporting may be required on Form 706 to allocate GST exemption.

Disqualifying Factors That Remove Filing From Consideration

• The decedent was not a U.S. citizen or resident at death and owned no U.S.-situated property. (Different rules and forms can apply to nonresident estates.)
• The estate is below the threshold and no portability election is needed.
• All assets pass to a surviving spouse who is a U.S. citizen and there are no GST issues, bringing the taxable estate to zero.

Note: Non-citizen spouses often require special planning; the unlimited marital deduction may not apply unless assets pass to a qualified domestic trust. That can affect filing needs.

Required Deadlines, Fees, and Documents

• Filing deadline: Form 706 is due 9 months after death. Use About Form 706 for the latest version and instructions.
• Extension: To request more time to file (not to pay), submit Form 4768 by the original due date. See About Form 4768.
• Estate tax closing letter fee: The IRS reduced the fee to $56 for requests received on or after May 21, 2025, per the Form 706 instructions (Rev. September 2025).

States may have their own estate or inheritance taxes with lower thresholds:
– Rhode Island: requires Form RI-706 for estates over $1,300,000. See the state tax site at tax.ri.gov. For extensions, Rhode Island uses Form RI-4768, also available at tax.ri.gov.
– Oregon: uses Form OR-706. Visit the Department of Revenue at www.oregon.gov/dor.

What If You’re Not Eligible to File? Alternatives and Next Steps

If the estate is under the federal threshold and no portability is needed, you can:
– Skip the federal estate tax return and keep thorough records of asset values and debts at death.
– Confirm whether the decedent made large lifetime gifts; if so, check whether a previous gift tax return was filed.
– Check state rules; some states tax estates well below federal levels.

If a GST issue exists but the estate is under the exclusion, consider:
– Filing Form 706 voluntarily to allocate GST exemption properly.
– Reviewing trust terms to avoid unwanted GST tax later.

If you discover lifetime gifts exceeded the annual exclusions in past years and no gift tax returns were filed, consult a qualified tax professional about late filings. Correcting the history can protect the estate’s remaining exemption.

How to Improve Your Chances of a Smooth Filing

• Value assets carefully. Use qualified appraisals for real estate and closely held businesses.
• Track lifetime gifts. Gather past gift tax returns and records of large transfers.
• Document debts and deductions. Keep proof of funeral costs, mortgages, and charitable donations.
• Plan for GST early. If trusts for grandchildren were used, check GST allocations and elections.
• File on time. Use About Form 4768 if you need extra time.
• Coordinate with state rules. Confirm thresholds and forms at tax.ri.gov and www.oregon.gov/dor if those states are involved.

Common Pitfalls That Can Trigger Tax or Penalties

• Missing portability: If there’s a surviving spouse, consider filing Form 706 to preserve any unused exclusion for the survivor, even when no tax is due now.
• Ignoring prior gifts: Not accounting for large lifetime gifts can push the estate over the limit.
• Overlooking GST exposure: Transfers to grandchildren or certain trusts can add a separate tax layer.
• Late filing without an extension: Penalties and interest can grow quickly when taxes are owed.

Estate administration can feel heavy after a loss. Filing rules aim to tax only large estates, which means most families owe no federal estate tax. Still, a few key steps—checking lifetime gifts, confirming the size of the taxable estate, and considering the generation-skipping transfer rules—can prevent costly mistakes.

Human Impact: Why This Matters for Families

Estate administration touches families at a sensitive time. Charitable gifts and transfers to a spouse usually reduce or remove estate tax. For some, filing to lock in portability for a surviving spouse is a simple safeguard to protect future family wealth. A careful review of the gift tax, the estate tax, and any generation-skipping transfer issues can save time and money for the estate and heirs.

Where to Find Official Guidance

• IRS main site: IRS website
• Federal estate tax form: About Form 706
• Extension form: About Form 4768
• Rhode Island tax department: tax.ri.gov
• Oregon Department of Revenue: www.oregon.gov/dor

The IRS updated the Form 706 instructions in September 2025 and lowered the estate tax closing letter fee to $56 for requests made on or after May 21, 2025. Always check the latest instruction set on the IRS page before filing.

If you work through this checklist and still aren’t sure, consider getting qualified help. A careful review by a tax professional of gift, estate, and GST issues can protect the estate and heirs from costly mistakes.