17 Mar We’re trying to close out an estate. Do we need this form?

Q. My mother passed away in 2019 with $4 million of assets all being distributed to Class A beneficiaries. An attorney handling the estate advised that a Form 706, federal estate tax return, did not need to be filed as the estate was below the $11.4 million threshold for filing a return. The assets have been distributed to the beneficiaries and refunding bonds filed with the county. If you do not file Form 706 with the IRS, how do you obtain an estate closing letter? The decedent’s final income tax return was filed.
— Beneficiary

A. We’re sorry to hear about your mother.

Closing out an estate can be complicated, so we’re glad you had an attorney helping you.

An estate tax closing letter is an acknowledgement by the IRS that it has accepted the estate tax return, said Shirley Whitenack, an estate planning attorney with Schenck, Price, Smith & King in Florham Park.

“The IRS will not issue an estate closing letter if a Form 706 was not filed,” she said.

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This story was originally published on March 17, 2022.

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