Massachusetts Department of Revenue

Massachusetts Estate Tax Return

Form M-706

Name of decedent Date of death (mm/dd/yyyy) Social Security number

3 3 3
Street address at time of death

City/Town State Zip Country

County of probate court Case/docket number

Name of executor/personal representative Designation Phone

Street address

City/Town State Zip Country

Name of attorney(s), if any, representing estate Phone

Street address

City/Town State Zip Country

Fill in if filed:
Form M-4768
Form M-4422
Fill in if:
Amended return (see “Amended Return” in instructions)
Amended return due to federal change

Note: The Massachusetts estate tax is computed using the Internal Revenue Code (IRC) in effect on December 31, 2000. Changes to the IRC enacted
after December 31, 2000 do not affect the computation of the Massachusetts estate tax. All references to the U.S. Form 706 are to the form with a revi-
sion date of July 1999. This form and instructions are available at mass.gov/dor. All estates are required to submit a completed U.S. Form 706 with a
revision date of July 1999 in addition to the Massachusetts Form M-706. If the estate is required to file a current U.S. Form 706, attach a copy of that
return, with all attachments, in addition to the U.S. Form 706 with a revision date of July 1999 and the Massachusetts Form M-706. For Privacy Act
Notice, see instructions.

Declaration
The personal representative of the estate is personally liable for transfers of estate assets before all taxes are paid. The undersigned certifies
under the penalties of perjury that all items and statements contained herein are true and accurate in every particular.
Signature Title Date

File and pay online at mass.gov/masstaxconnect. It's fast and easy to use. Or, mail this return with payment in full to Massachusetts Department of
Revenue, PO Box 7023, Boston, MA 02204. Make check or money order payable to Commonwealth of Massachusetts.

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 FORM M-706, PAGE 2

Name of decedent Date of death (mm/dd/yyyy) Social Security number

3 3 3

01 Marital status at time of death: Single Married Widow or widower

01a Name of deceased spouse 1b Social Security number of spouse 1c Date of death of spouse (mm/dd/yyyy)

12 Fill in if there was any insurance on the decedent’s life that is not included in the gross estate (attach Form(s) 712 for life insurance). . . . . . . . . . .

13 Fill in if at time of death the decedent owned any property as a joint tenant with rights of survivorship in which: one or more of the other joint
tenants was someone other than the decedent’s spouse and less than the full value of the property is included on the return as part of gross
estate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14 Fill in if at time of death the decedent owned any interest in a partnership or unincorporated business or any stock in an inactive or closely
held corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15 Fill in if the decedent made any transfer under Internal Revenue Code sections 2035, 2036, 2037 or 2038 in which an asset has been excluded
from the gross estate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16 Fill in if during the decedent’s lifetime any gifts were made in excess of the annual exclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16a Fill in if U.S. Form 709 was filed with the IRS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16b Fill in if line 9 of U.S. Form 706 (with a revision date of July 1999) is more than 0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17 Fill in if the estate elects to make a Qualified Terminable Interest Property (QTIP) deduction under Internal Revenue Code Section 2056(a). . . . . .

18 Fill in if the decedent was ever the beneficiary of a QTIP trust for which a deduction was claimed by the estate of a pre-deceased spouse under
Internal Revenue Code section 2056(b)(7) and which is not reported on this return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19 Fill in if the estate elects alternate valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10 Fill in if the estate elects special use valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part 1. Tentative Massachusetts estate tax

01 Total gross estate (from page 1, line 1 of U.S. Form 706 with a revision date of July 1999 or from Part 5, line 12 of
this return). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

02 Total allowable deductions (from page 1, line 2 of U.S. Form 706 with a revision date of July 1999 or from Part 6,
line 11 of this return). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

03 Subtract line 2 from line 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

04 Adjusted taxable gifts (from page 1, line 4 of U.S. Form 706 with a revision date of July 1999). . . . . . . . . . . . . . . . . . . . . 4

05 Add lines 3 and 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

06 Total gift tax payable (from page 1, line 9 of U.S. Form 706 with a revision date of July 1999). . . . . . . . . . . . . . . . . . . . . . 6

07 Credit for state death taxes (from page 1, line 15 of U.S. Form 706 with a revision date of July 1999). . . . . . . . . . . . . . . 7

Part 2. Computation of tax for estate of Massachusetts resident decedent with property
in another state
01 Total gross estate, wherever situated. Enter the amount from Part 1, line 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

02 Credit for state death taxes. Enter amount from Part 1, line 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

03 Estate or inheritance taxes actually paid to other states. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

04 Gross value of real estate and tangible personal property in other states. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

05 Percentage of estate in other states. Divide line 4 by line 1. Note: Complete computation to six decimal places. . . . . . . 5

06 Prorated credit. Multiply line 2 by line 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

07 Deduction allowable for taxes paid to other states. Enter the smaller of line 3 or line 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

08 Massachusetts estate tax. Subtract line 7 from line 2. Enter here and in Part 4, line 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

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 FORM M-706, PAGE 3

Name of decedent Date of death (mm/dd/yyyy) Social Security number

3 3 3

Part 3. Computation of tax for estate of nonresident decedent with Massachusetts

property
01 Total gross estate, wherever situated. Enter the amount from Part 1, line 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

02 Credit for state death taxes. Enter the amount from Part 1, line 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

03 Gross value of real estate and tangible personal property in Massachusetts. Enter the total reported on Form M-NRA,
line 26. Do not deduct the value of any mortgage or lien. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

04 Percentage of estate in Massachusetts. Divide line 3 by line 1. Note: Complete computation to six decimal places. . . . . 4

05 Massachusetts nonresident estate tax. Multiply line 2 by line 4. Enter result here and in Part 4, line 1. . . . . . . . . . . . . . . 5

Part 4. Massachusetts estate tax due

01 Massachusetts estate tax. Enter the amount from Part 1, line 7; Part 2, line 8; or Part 3, line 5, whichever applies. . . . . 1

02 Late file and/or late pay penalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

03 Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

04 Total amount due. Add lines 1 through 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

05 Payments made with extension. Attach a copy of Form M-4768. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

06 Other amounts previously paid. Attach copies of any prior filings with payment dates and amounts. . . . . . . . . . . . . . . . . 6

07 Total payments. Add lines 5 and 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

08 Overpayment. If line 4 is smaller than line 7, subtract line 4 from line 7. This is the amount of your refund. If line 4 is
larger than line 7, omit line 8 and complete line 9. If lines 4 and 7 are equal, enter 0 in line 8 and omit line 9. . . . . . . . . . 8

09 Balance due. If line 4 is larger than line 7, subtract line 7 from line 4. This is the amount of the payment due at time
of filing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Part 5. Total gross estate. Schedule references are to the schedules of the U.S. Form 706 with a revision date of July 1999 which
must be completed and submitted with this return whether or not a current federal estate tax return, U.S. Form 706, is required to be filed.

Alternate value Value at date of death

01 Schedule A: Real estate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

02 Schedule B: Stocks and bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

03 Schedule C: Mortgages, notes, and cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

04 Schedule D: Insurance on decedent’s life (attach Form(s) 712). . . . . . . . . . . . . . . . . . . . . . . . . 4

05 Schedule E: Jointly owned property (attach Form(s) 712 for life insurance). . . . . . . . . . . . . . . 5

06 Schedule F: Other miscellaneous property (attach Form(s) 712 for life insurance). . . . . . . . . . 6

07 Schedule G: Transfers during decedent’s life (attach Form(s) 712 for life insurance). . . . . . . . 7

08 Schedule H: Powers of appointment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

09 Schedule I: Annuities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

10 Total gross estate (add lines 1 through 9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

11 Schedule U: Qualified conservation easement exclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

12 Total gross estate less exclusion (subtract line 11 from line 10). Enter here and on line 1
of Part 1, Tentative Massachusetts estate tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

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 FORM M-706, PAGE 4

Name of decedent Date of death (mm/dd/yyyy) Social Security number

3 3 3

Part 6. Total allowable deductions. Schedule references are to the schedules of the U.S. Form 706 with a revision date of July
1999 which must be completed and submitted with this return whether or not a current federal estate tax return, U.S. Form 706, is required to be filed.

01 Schedule J: Funeral expenses and expenses incurred in administering property subject to claims. . . . . . . . . . . . . . . . . . 1

02 Schedule K: Debts of the decedent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

03 Schedule K: Mortgages and liens. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

04 Add lines 1 through 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

05 Amount of allowable deduction from line 4 (see IRC Section 2053(c)). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

06 Schedule L: Net losses during administration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

07 Schedule L: Expenses incurred in administering property not subject to claims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

08 Schedule M: Bequests, etc. to surviving spouse. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

09 Schedule O: Charitable, public and similar gifts and bequests. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

10 Schedule T: Qualified family-owned business interest deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

11 Total allowable deductions (add lines 5 through 10). Enter here and on line 2 of Part 1, Tentative Massachusetts
estate tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

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 FORM M-706, PAGE 5

Name of decedent Date of death (mm/dd/yyyy) Social Security number

3 3

Part 7. Real estate subject to Massachusetts estate tax lien. Complete the table below for each property in which the decedent had an interest.

1. a. Property street address b. City/town c. Zip code

d. Certificate of e. Date of deed f. g. Book number h. Page number

title number (mm/dd/yyyy) Registry in which deed was recorded of deed of deed

2. a. Property street address b. City/town c. Zip code

d. Certificate of e. Date of deed f. g. Book number h. Page number

title number (mm/dd/yyyy) Registry in which deed was recorded of deed of deed

3. a. Property street address b. City/town c. Zip code

d. Certificate of e. Date of deed f. g. Book number h. Page number

title number (mm/dd/yyyy) Registry in which deed was recorded of deed of deed

4. a. Property street address b. City/town c. Zip code

d. Certificate of e. Date of deed f. g. Book number h. Page number

title number (mm/dd/yyyy) Registry in which deed was recorded of deed of deed

Rev. 10/18
 6 General Information
Note: All references to the Internal Revenue Code, United States Estate (and Generation-Skipping Gifts to a third party. IRC sec. 2513 permits a
the Code or any section of the Code refer to the Transfer) Tax Return and is entered on line 15 of gift made by one spouse to any person to be con-
Internal Revenue Code in effect on December 31, that form. Portions of the July 1999 revision of the sidered as made one-half by the donor and one-
2000. All references to the federal Form 706, United federal Form 706 are not necessary for the com- half by the donor’s spouse. This election is
States Estate (and Generation-Skipping Transfer) putation of the credit for state death taxes and need available to spouses in a same-sex marriage. Al-
Tax Return or to the Instructions for Form 706 re- not be completed. Completion of the following por- though Massachusetts does not have a gift tax,
fer to the July 1999 revisions of the federal estate tions of the July 1999 revision of the federal Form this section can affect the application of related
tax return and the instructions. 706 is not required: estate tax provisions (i.e., the filing threshold).
• lines 16 through 27 on page 1; Note: This election requires the filing of pro forma
Recent Changes federal gift tax returns with the Massachusetts
• The Form M-706 has been revised, and can • the computation of the credit for federal gift Estate Tax Unit. Since same-sex marriage is not
now be filed by entering information electronically taxes on pre-1977 gifts (section 2012); recognized for federal tax purposes, partners
through MassTaxConnect. Filing through Mass- • Schedule P, Credit for Foreign Death Taxes; who elect to have a gift of one spouse considered
TaxConnect will result in faster processing, and a as made one-half by each spouse are required to
• Form(s) 706-CE, Certificate of Payment of For-
quicker generation of the Massachusetts Estate file pro forma federal Form 709 or Form 709-A in
eign Death Tax;
Closing Letter and the Certificate Releasing Mass- accordance with the filing requirements of IRC
achusetts Estate Tax Lien. • Schedule Q, Credit for Tax on Prior Transfers; sec. 6075(b). A copy of the federal gift tax returns
and filed with the Internal Revenue Service must also
• The Power of Attorney sections on both the
M-706 and M-4422 have been eliminated. In order • Schedule R, Generation-Skipping Transfer Tax be filed with the pro forma gift tax returns.
to grant a Power of Attorney, Form M-2848 must The credit for state death taxes computed on line
be filed. 15 of the July 1999 revision of the federal Form
Privacy Act Notice
Under the authority of 42 U.S.C. sec. 405(c)(2)(C)(i),
• The Form M-4768 has been modified to ac- 706 is entered on line 2 of Part 1 of either Form
and M.G.L. c. 62C, sec. 5, the Department of Rev-
commodate applications for an extension of time M-706, Massachusetts Estate Tax Return, or Form
enue has the right to require an individual to furnish
to file and an extension of time to pay. The M-4422, Application for Certificate Releasing Mass-
his or her Social Security number on a state tax
M-4768A has been eliminated. The requirements achusetts Estate Tax Lien. The credit for state
return. This information is mandatory. The Depart-
to qualify for a valid extension of time to file and death taxes is used to compute the Massachusetts
ment of Revenue uses Social Security numbers
to pay remain unchanged. estate tax.
for taxpayer identification to assist in processing
• New lines have been added to the M-706 which and keeping track of returns and in determining
correspond directly to line items on the federal
Effect of Goodridge decision on and collecting the proper amount of tax due. Under
Form 706. (July 1999 revision). These are found Internal Revenue Code in effect M.G.L. c. 62C, sec. 40, the taxpayer’s identifying
on page 2, and in Parts 5 and 6. on December 31, 2000 number is required to process a refund of overpaid
Beginning May 16, 2004 Massachusetts law per- taxes. Although tax return information is generally
• Form M-792 will no longer need to be attached
mits same-sex couples to marry. See Goodridge confidential pursuant to M.G.L. c. 62C, sec. 21, the
to the M-706 to effect a release of the Massachu-
v. Department of Public Health, 440 Mass. 309 Department of Revenue may disclose return infor-
setts Estate Lien. Rather, the information provided
(2003) and Technical Information Release 04-17, mation to other taxing authorities and those enti-
on the M-706, Part 7 will be used for this pur-
Massachusetts Tax Issues Associated with Same- ties specified in M.G.L. c. 62C, secs. 21, 22 or 23,
pose. Once any tax due is paid, and the return is
Sex Marriages. As a result of the Goodridge deci- and as otherwise authorized by law.
accepted as filed, the Massachusetts Estate Tax
Closing Letter, as well the Certificate Releasing sion, the term “spouse”, for Massachusetts estate
Massachusetts Estate Lien, will be issued. Note: It tax purposes, includes partners in a same-sex Massachusetts Filing
is important that Part 7 of the M-706 be fully com- marriage. The following three provisions of the De- Requirements
pleted for each property needing a lien release. cember 31, 2000 Internal Revenue Code reflect the The filing thresholds and exempt amounts for Mass-
Failure to provide all the information necessary Massachusetts estate tax treatment of spouses in achusetts estate tax purposes are the following:
will delay issuance of the Certificate Releasing a same-sex marriage.
Year of death Threshold/exemption
Massachusetts Estate Lien. Marital deduction. A Massachusetts marital de- 2003. . . . . . . . . . . . . . . . . $2,700,000
duction is allowable for property passing from a 2004. . . . . . . . . . . . . . . . . $2,850,000
Calculating the Estate Tax decedent to his/her surviving same-sex spouse 2005. . . . . . . . . . . . . . . . . $2,950,000
Effective for dates of death on or after January 1, to the same extent that property left to a surviving 2006 and thereafter. . . . . $1,000,000
2003, the Massachusetts estate tax is an amount husband or wife is allowable as a marital deduc-
To determine whether a return must be filed for a
computed using the credit for state death taxes tion provided the requirements of IRC sec. 2056
decedent’s estate, add:
allowed by section 2011 of the Internal Revenue are met.
Code in effect on December 31, 2000. M.G.L. c. 1. the adjusted taxable gifts (under section 2001(b))
Joint property. Spouses in a same-sex marriage
65C, § 2A. Future changes to the federal estate tax made by the decedent after December 31, 1976;
are allowed to include in the gross estate of a de-
law will not affect the Massachusetts estate tax law, cedent one-half the value of certain joint interests 2. the total specific exemption allowed under sec-
as the reference for Massachusetts estate tax pur- under IRC sec. 2040(b) in the same manner that a tion 2521 (as in effect before its repeal by the Tax
poses is the Internal Revenue Code in effect on De- husband and wife are permitted this treatment pro- Reform Act of 1976) for gifts made by the dece-
cember 31, 2000. vided the interest in property meets the require- dent after September 8, 1976; and
The credit for state death taxes is computed using ments of IRC sec. 2040(b)(2). 3. the decedent’s gross estate valued at the date
the July 1999 revision of the federal Form 706, of death.
 General Information 7

The executor/personal representative must file dent Decedent Affidavit. The gross values of all 6621(b) of the Internal Revenue Code, as amended
Form M-706, Massachusetts Estate Tax Return, real and/or tangible personal property having an and in effect for the taxable year, plus four per-
for any estate in which the sum of the above three actual situs in Massachusetts and included in the centage points, compounded daily. Effective July
items exceeds the exempt amount for the year of decedent’s gross estate are listed on line 26 of 1, 2003, the interest rate on overpayments pur-
the decedent’s death. For further information, see Form M-NRA. suant to M.G.L. c. 62C, § 40 is the Federal short-
Technical Information Release 02-18, Tax Changes term rate determined under Section 6621(b) of the
Contained in “An Act Enhancing State Revenues” Definition of an Executor Internal Revenue Code, as amended and in effect
and Related Acts and DOR Directive 03-2, Issues For purposes of the Massachusetts estate tax, an for the taxable year, plus two percentage points,
Arising from Decoupling the Massachusetts Estate executor/personal representative is defined as the simple interest. The interest rates for underpay-
Tax from the Federal Estate Tax. In addition, see executor/personal representative or administrator ments and overpayments may change quarterly
“Which Estates Must File” on page 2 of the July of the decedent’s estate, or, if there is no execu- and are announced in a quarterly Technical Infor-
1999 revision of the Instructions for Form 706. tor/personal representative or administrator ap- mation Release.
Beginning with deaths occurring in 2003, the filing pointed, qualified and acting within the Common- The penalty for failure to file Form M-706 by the
thresholds and exempt amounts are lower for wealth, then any person in actual or constructive due date, or within an authorized extension of time,
Massachusetts estate tax purposes than for fed- possession of any property of the decedent. is 1% per month (or fraction thereof) to a maxi-
eral estate tax purposes. M.G.L. c. 65C, § 6(a). mum of 25% of the tax as finally determined to be
Adjusted taxable gifts affect the Massachusetts fil- due. M.G.L. c. 62C, § 33(a). The penalty for failure
ing threshold but are not added to the taxable es- Due Dates and Extensions to pay the tax reported as due on Form M-706,
tate (page 1, line 4 of the July 1999 revision of The Massachusetts estate tax return, with all re- by the due date, or within an authorized extension
the federal Form 706) for the computation of the quired documents, and the payment for the tax, if of time, is 1% per month (or fraction thereof) to
credit for state death taxes. Adjusted taxable any, must be filed within nine months after the date a maximum of 25% of the tax reported to be due.
gifts are added to the taxable estate for the com- of the decedent’s death. M.G.L. c. 62C, § 33(b).
putation of tentative tax using Table A, the unified Requests for an extension of time to file or to pay
rate schedule, that is on page 12 of the July 1999 must be made prior to the due date of the return Required Documents
revision of the Instructions for Form 706. on Form M-4768, Massachusetts Estate Tax Ex- All estates that are required to file a Massachu-
The July 1999 revision of the Instructions for Form tension Application. An extension of time to file setts estate tax return must submit the following
706 has information concerning adjusted taxable shall only be granted if the application is accom- documents:
gifts in the “Instructions for Part 2. Lines 4 and panied by the estimated tax payment unless the • Form M-706, Massachusetts Estate Tax Return;
9” on page 4 and in the “Worksheet TG-Taxable estate is also requesting an extension of time to
pay the estate tax. An extension of time to file is • the July 1999 revision of the federal Form 706,
Gifts Reconciliation” and the “Line 4 Worksheet- United States Estate (and Generation-Skipping
Adjusted Taxable Gifts Made After 1976” on page void if the total amount paid before the due date
of the return is less than 80% of the tax finally de- Transfer) Tax Return, with all attachments de-
5. See the “Instructions for Part 2. Line 12” for scribed in the instructions for that form; and
information concerning gifts made after Septem- termined to be due unless the estate was granted
ber 8, 1976 and before January 1, 1977. an extension of time to pay the estate tax. • a check, payable to the Commonwealth of Mass-
achusetts, for the Massachusetts estate tax, if any,
The executor/personal representative of a nonres- Payment of Tax and Filing that is due with the decedent’s full name and So-
ident decedent who owned or transferred, for less
than full and adequate consideration, real estate or
the Return cial Security number entered in the memo por-
New: Payments can now be made online at mass. tion of the check.
tangible personal property located in Massachu-
gov/masstaxconnect. Also, credit cards are now New: Payments can now be made online at mass.
setts must file a Form M-706, Massachusetts Es-
accepted for estate tax payments. gov/masstaxconnect. Also, credit cards are now
tate Tax Return, if the sum of the three items de-
scribed above exceeds the exempt amount for the Payment of the estate tax can also be made by a accepted for estate tax payments.
year of the decedent’s death. The estate of a non- check payable to the Commonwealth of Massachu-
resident decedent may have a Massachusetts fil- setts. Enter the decedent’s full name and Social Se- Computation of Credit for State
ing requirement even if the value of the Massachu- curity number in the memo portion of the check. Death Taxes (Code § 2011)
setts real or tangible personal property is less than The executor/personal representative signing the The credit for state death taxes is computed using
the exempt amount for the year of the decedent’s return is personally liable for payment of any tax the taxable estate from line 3 of the July 1999 re-
death. The estate tax for the estate of a nonresi- shown on the return if it is not otherwise paid. The vision of the federal Form 706. The federal taxable
dent decedent with Massachusetts property is return and the tax payment should be sent to the estate is reduced by $60,000 and the credit is com-
computed in Part 3 of Form M-706 or Form Massachusetts Estate Tax Unit, PO Box 7023, puted using the rates contained in Table B, Com-
M-4422. The gross value of the real property and Boston, MA 02204. putation of Maximum credit for State Death Taxes.
tangible personal property in Massachusetts is Table B and the Table B Worksheet are on page
used in the calculation. Do not reduce the value Interest and Penalties 12 of the July 1999 revision of the Instructions
of the decedent’s Massachusetts property by Interest on any unpaid tax accrues from the orig- for Form 706.
the amount of any mortgage or lien. The per- inal due date of the return which is nine months
If the credit for state death taxes computed using
centage of the estate in Massachusetts that is after the date of the decedent’s death. The Depart-
Table B is greater than the amount computed on
computed on line 4 in Part 3 of Form M-706 or ment determines the quarterly interest rate on un-
line 14 of the federal Form 706, enter the amount
Form M-4422 should be calculated to six decimal derpayments pursuant to M.G.L. c. 62C, § 32.
from line 14 on line 15. The amount entered on
places. The estate of a nonresident decedent must The interest rate for underpayments is the Federal
line 15 may not be more than the amount entered
also file Form M-NRA, Massachusetts Nonresi- short-term rate determined under Section
on line 14. For further information on the limitation
 8 General Information

based on the amount of the tax, see IRC § 2011(e). Massachusetts estate tax purposes. See the in- purchase and sale agreement or the mortgage
In the calculation of the amount on line 14, the structions for Schedule F that are on page 20 of commitment should be submitted with a letter ex-
applicable credit amount entered on line 11 of the the July 1999 revision of the federal Form 706. plaining that the M-706 was previously filed.
July 1999 revision of the federal Form 706 is the For further information regarding section 2056(b)(7) New: Form M-4422 can now be filed on line at
amount allowed by the December 31, 2000 Code property and section 2044 property, see “Issue mass.gov/masstaxconnect. This is the quickest
that is different than the applicable credit amount 1” of DOR Directive 03-2, Issues Arising from De- and easiest way to obtain the Massachusetts Cer-
allowed by current federal estate tax law. The ap- coupling the Massachusetts Estate Tax from the tificate Release of Estate Lien.
plicable credit amounts for the July 1999 revision Federal Estate Tax.
of the federal Form 706 are the following: Releasing Lien If There Is No
Year of death Credit amount Massachusetts Estate Tax Lien Massachusetts Filing
2003. . . . . . . . . . . . . . . . . $229,800 on Real Estate
2004. . . . . . . . . . . . . . . . . $287,300
Requirement
The Commonwealth automatically acquires a lien If a Massachusetts Estate Tax Return is not re-
2005. . . . . . . . . . . . . . . . . $326,300 against all Massachusetts real estate included in quired to be filed because the size of the estate
2006 and thereafter. . . . . $345,800 a decedent’s gross estate. Unless the tax is paid does not equal or exceed the Massachusetts filing
See the instructions for Line 11, Unified Credit (Ap- in full, the lien is valid for 10 years from the dece- threshold for the year of the decedent’s death, an
plicable credit amount) on page 4 of the July 1999 dent’s date of death. M.G.L. c. 65C, § 14. affidavit of the executor or other fiduciary, sub-
revision of the Instructions for Form 706. scribed to under the pains and penalties of perjury,
Massachusetts Filing Require- recorded in the appropriate registry of deeds ac-
Marital Deduction for Qualified ment to Obtain a Release of Lien curately stating that the gross estate of the dece-
Terminable Interest Property When the filing of a Massachusetts Estate Tax Re- dent does not necessitate a Massachusetts estate
(“QTIP”) turn is required to obtain a release of this lien be- tax filing, shall release the gross estate of the lien
An estate may elect to claim a marital deduction cause the size of the estate equals or exceeds the imposed by M.G.L. c. 65C, § 14.
for Qualified Terminable Interest Property or Massachusetts filing threshold for the year of the For further information, see “Issue 2” of DOR Direc-
property interests. The QTIP election allowed by decedent’s death, an executor must file Form tive 03-2, Issues Arising from Decoupling the Mass-
IRC § 2056(b)(7) is made by listing the qualified M-706. The filing must be accompanied by a copy achusetts Estate Tax from the Federal Estate Tax.
terminable interest property on Schedule M of the of the recorded deed, certificate of title or the pro-
July 1999 revision of the federal Form 706 and bate instrument that created the decedent’s inter- Report of Federal Estate Tax
deducting its value. In addition, the estate must est and a copy of the July 1999 revision of the
federal estate tax return, Form 706, with all attach- Changes
answer the question regarding the QTIP election Federal estate tax changes must be reported within
on page 2, line 7 of Form M-706, Massachusetts ments described in the instructions for that form.
If the estate is required to file a current federal two months of receipt of a final determination (for
Estate Tax Return. The executor or other fiduciary example, the federal closing letter, agreed upon
is not required to make the same QTIP election for Form 706, submit a copy of that return with any
required attachments that are not included with federal audit changes, agreed upon IRS Appeals
federal estate tax purposes in order to make the Office changes, Tax Court decision, etc.) of the
election for Massachusetts purposes. The “De- the July 1999 version of the federal Form 706. The
estate of a nonresident decedent must submit federal estate tax change(s). An amended Form
scription of property interests passing to surviving M-706 should be used to report any change(s).
spouse” section of Schedule M of the federal Form Form M-NRA, Massachusetts Nonresident Dece-
dent Affidavit. The Form M-706 is an “amended” return when the
706 must clearly indicate the property for which box on page 1 of the return is checked. For further
a Massachusetts only QTIP election is made. The When a sale of real estate or a mortgage commit- information regarding what constitutes a federal
election is irrevocable. See the instructions for ment is pending, the Estate Tax Unit will expedite change, see Technical Information Release 99-14,
Schedule M, Bequests, etc., to Surviving Spouse the release of the estate tax lien. The estate may Expanded Definition of “Federal Change.” Attach
that begin on page 27 of the July 1999 revision request the release of lien on Form M-4422, Appli- a copy of the final federal determination and pay
of the federal Form 706. cation for Certificate Releasing Massachusetts Es- any additional Massachusetts estate tax, interest
Section 2044 of the December 31, 2000 Code in- tate Tax Lien, if (1) the date for filing the estate and penalty, if any, due as a result of the change.
cludes the value of the property for which a pre- tax return has not yet passed, and (2) Form M- The change(s) must relate to an entry that was
vious section 2056(b)(7) election was made in 706 cannot be completed prior to the date of the reported on the July 1999 revision of the federal
the gross estate of the surviving spouse. Section sale, a copy of the purchase and sale agreement Form 706.
2044 property is reported on Schedule F, Other or the mortgage commitment must be submitted
with the Form M-4422. If the estate is filing the If a refund is indicated as a result of the federal
Miscellaneous Property of the July 1999 revision estate tax change and a Massachusetts Estate Tax
of the federal Form 706. As a result of different Form M-706 and a sale of real estate or a mort-
gage commitment is pending, a copy of the pur- Closing Letter has previously been issued, an
federal and Massachusetts QTIP elections in the amended M-706 must be filed within one year of
estate of the first-to-die spouse, the value of the chase and sale agreement or the mortgage
QTIP property included in the estate of the sec- commitment should be submitted at the time of
ond-to-die spouse may be different for federal and filing the Form M-706. If the estate previously
filed Form M-706 and a sale of real estate or a
mortgage commitment is pending, a copy of the
 Line by Line Instructions 9

receipt of the final federal determination. The Part 3. Computation of Tax for Estate of Part 5. Total Gross Estate
change(s) must relate to an entry that was re- Nonresident Decedent with Massachusetts All schedule references are to the schedules of
ported on the July 1999 revision of the federal Property the U.S. Form 706 with a revision date of July
Form 706. Line 1. Enter the amount from Part 1, line 1. 1999. U.S. Form 706 (rev. 1999) must be com-
pleted and submitted with this return whether or
Line 2. Enter the amount from Part 1, line 7.
Line by Line Instructions not a current federal estate tax return, U.S. Form
Part 1. Tentative Massachusetts Estate Tax Line 3. Enter the total gross value of all real 706, is required to be filed.
Line 1. Enter the total value of the decedent’s and/or tangible personal property having an ac-
tual situs in Massachusetts and included in the Part 6. Total Allowable Deductions
gross estate from the July 1999 revision of the
decedent’s gross estate from line 26 of Form M- All schedule references are to the schedules of
federal Form 706, page 1, line 1. Do not reduce
NRA, Massachusetts Nonresident Decedent Affi- the U.S. Form 706 with a revision date of July
the gross value by the amount of any property
davit. Do not deduct the value of any mortgage or 1999. U.S. Form 706 (rev. 1999) must be com-
subject to a power of appointment upon which an
lien. pleted and submitted with this return whether or
inheritance tax on future interests has been set-
not a current federal estate tax return, U.S. Form
tled and paid pursuant to M.G.L. c. 65, § 14. Line 4. Divide Part 3, line 3 by Part 3, line 1. The 706, is required to be filed.
Line 2. Enter the total allowable deductions (from result should be computed to six decimal places.
page 1, line 2 of U.S. Form 706 with a revised date Line 5. Multiply Part 3, line 2 by Part 3, line 4. Part 7. Real Estate Subject To
of July 1999 or from Part 6, line 11 of this return). Enter the result in Part 3, line 5 and in Part 4, line Massachusetts Estate Tax Lien
1. Complete this table for all Massachusetts property
Line 3. Subtract line 2 from line 1. in which the decedent had an interest. Note that
Line 4. Adjustable taxable gifts (from page 1, line Part 4. Massachusetts Estate Tax Due this table replaces the Form M-792, Certificate Re-
4 of U.S. Form 706 with a revised date of July Line 1. Enter the amount from Part 1, line 7 or leasing Massachusetts Estate Tax Lien.
1999). Part 2, line 8 or Part 3, line 5, whichever applies.
Line 5. Add lines 3 and 4. Line 2. Enter the amount of any late file and/or Estate Tax Information
late pay penalties. The penalty for failure to file a For further estate tax information, please call the
Line 6. Enter the total gift tax payable (from page Estate Tax Unit at (617) 887-6930.
tax return by the due date is 1% of the tax due,
1, line 9 of U.S. Form 706 with a revised date of
per month (or fraction thereof) up to a maximum All estate tax forms and instructions are available
July 1999).
of 25%. The penalty for late payment is 1% of on the Department’s website. In addition, Techni-
Line 7. Credit for state death taxes (from page 1, the tax due, per month (or fraction thereof) up to cal Information Releases and Directives issued by
line 15 of U.S. Form 706 with a revision date of a maximum of 25%. the Department of Revenue are published at the
July 1999). Rulings and Regulations section of the Depart-
Line 3. Interest on any unpaid tax accrues from
Part 2. Computation of Tax for Estate of the original due date of the return. See “Interest ment’s website: www.mass.gov/dor.
Massachusetts Resident Decedent with and Penalties” on page 3.
Property in Another State Line 4. Add lines 1 through 3. This is the total
Line 1. Enter the amount from Part 1, line 1. amount due.
Line 2. Enter the amount from Part 1, line 7. Line 5. Enter the total of all previous payments
Line 3. Enter the amount of estate or inheritance made with any extension(s). Attach a copy of Form
taxes actually paid to other states that would qualify M-4768, Application for Estate Tax Extension.
for the federal estate tax state death tax credit al- Line 6. Enter the total of all previous payments
lowed by the December 31, 2000 Internal Revenue but not payments made with any extension(s). At-
Code. Attach documentation of the amount(s) paid. tach copies of prior filings with payment dates
Line 4. Enter the gross value of real estate and tan- and amounts.
gible personal property situated in other states. Do Line 7. Add lines 5 and 6. This is the total pay-
not reduce the gross value by the amount of any ments made.
mortgages, liens or debts. Attach a schedule of
Line 8. If line 4 is smaller than line 7, subtract
the non-Massachusetts property and identify the
line 4 from line 7. This is the amount of your re-
schedule(s) of the July 1999 revision of the fed-
fund. If line 4 is larger than line 7, omit line 8 and
eral Form 706 where the non-Massachusetts
complete line 9. If lines 4 and 7 are equal, enter 0
property is reported.
in line 8 and omit line 9.
Line 5. Divide Part 2, line 4 by Part 2, line 1. The
Line 9. If line 4 is larger than line 7, subtract line
result should be computed to six decimal places.
7 from line 4. If there is a balance owed the Com-
Line 6. Multiply Part 2, line 2 by Part 2, line 5. monwealth, make the check payable to the Com-
Line 7. Enter the smaller of Part 2, line 3 or Part monwealth of Massachusetts and enter the dece-
2, line 6. dent’s full name and Social Security number in
the memo portion of the check. Include any in-
Line 8. Subtract Part 2, line 7 from Part 2, line 2.
terest and penalties owed by the estate with the
Enter the result in Part 2, line 8 and in Part 4, line
payment. If there is a refund owed the estate, it
1.
will be refunded to the estate.