This topic can help families, executors, and beneficiaries understand when U.S. real estate, investments, and other U.S.-situated assets may trigger federal estate-tax filing obligations.

This article focuses on IRS Form 706-NA, which is used for certain estates of people who were neither U.S. citizens nor U.S.-domiciled residents when they died. The IRS generally requires this return when qualifying U.S.-situated assets, combined with specified gift amounts, exceed $60,000; the filing deadline is generally nine months after death.

When a person who is not a U.S. citizen or U.S. resident passes away, their estate may still have federal tax obligations if they owned property or investments in the United States. Understanding IRS Form 706-NA is important for executors, heirs, and families handling an estate that crosses international borders.

AIM Financial provides tax preparation information to help individuals and families understand complicated federal tax requirements. If you are managing an estate involving U.S. assets, learning when Form 706-NA applies can help you identify potential filing obligations and know when to seek professional assistance.

What Is IRS Form 706-NA?

Form 706-NA is officially called the United States Estate (and Generation-Skipping Transfer) Tax Return, Estate of Nonresident Not a Citizen of the United States.

The form is used to calculate federal estate and generation-skipping transfer tax liability for a person who, at the time of death, was neither a U.S. citizen nor domiciled in the United States for estate-tax purposes.

Unlike an individual income tax return, Form 706-NA addresses the transfer of a deceased person’s taxable estate. It is not a tax return that beneficiaries file simply because they inherit money or property.

Who Must File Form 706-NA?

The executor generally must file Form 706-NA when the value of the deceased person’s U.S.-situated assets, combined with certain specified gift amounts, exceeds the $60,000 filing threshold.

The threshold is substantially lower than the federal estate-tax exclusion that applies to many U.S. citizens and U.S.-domiciled residents. This is why international estate planning deserves careful attention.

Examples of situations that may require review include:

• A non-U.S. citizen who owned real estate in the United States.
• A foreign investor who held certain U.S. stocks or other U.S.-situated property at death.
• An estate involving U.S. assets and taxable gifts made during the deceased person’s lifetime.
• A family transferring U.S. property after the death of a relative who lived abroad.

The filing requirement depends on the type, location, and value of the assets, as well as applicable tax rules and any relevant estate-tax treaty. Not every asset owned by a foreign person is treated the same way, so the estate should not rely solely on the deceased person’s country of residence or the name on an account.

What Assets May Be Subject to U.S. Estate Tax?

The estate must identify and value property that is considered situated in the United States for federal estate-tax purposes.

Potential examples include:

• U.S. real estate: Houses, land, and certain other real property located in the United States.
• Certain U.S. stocks and investments: Some shares in U.S. corporations may be considered U.S.-situated property, even when held through an overseas brokerage account.
• Other U.S.-situated property: Depending on the circumstances, additional property may be included in the taxable estate.

Asset classification can be complicated. The location of a brokerage account, the currency used, or the country where an investment was purchased does not necessarily determine its estate-tax treatment.

Executors should gather ownership records, account statements, property appraisals, and other documentation needed to determine the assets’ value as of the date of death.

When Is Form 706-NA Due?

Form 706-NA is generally due nine months after the date of death. If the estate cannot complete the return by the deadline, the executor can review Form 4768 to request an extension of time to file.

An extension to file does not automatically extend the time to pay estate tax. If tax is due, payment timing and any interest or penalties should be evaluated separately.

Because obtaining international records, valuations, and legal documents can take time, executors should begin reviewing the estate promptly rather than waiting until the deadline approaches.

How Do You Complete Form 706-NA?

The IRS instructions outline the order for completing the return. In general, the executor will need to:

1. Identify the deceased person and executor. Provide personal details, citizenship, domicile, date of death, and executor information.
2. Answer general questions. Provide details about the estate and other information requested by the form.
3. Report U.S.-situated assets. List applicable assets and determine their values at the date of death.
4. Calculate the taxable estate. Apply allowable deductions and other applicable adjustments.
5. Calculate estate tax. Use the applicable tax computation and consider whether treaty provisions or available credits affect the result.
6. Attach supporting documents. Depending on the circumstances, these may include a death certificate, a copy of the will, valuations, and relevant prior gift tax returns.
7. Sign and file the return. Follow the current IRS instructions for signatures, attachments, and submission.

The current IRS instructions should be reviewed carefully. The IRS redesigned Form 706-NA in 2025, and the form version must correspond to the deceased person’s date of death.

Can an Estate-Tax Treaty Affect the Filing?

Yes. The United States has estate-tax treaties with certain countries. Depending on the deceased person’s circumstances, a treaty may affect how property is treated or how estate tax is calculated.

Executors should not assume a treaty eliminates the need to file. The applicable treaty must be reviewed to determine whether it changes the filing requirement, deductions, credits, or other tax treatment.

International estates may also require coordination among tax professionals, attorneys, financial institutions, and representatives in more than one country.

Common Mistakes to Avoid

Some common errors include:

• Assuming a foreign resident’s estate cannot owe U.S. estate tax.
• Overlooking U.S. real estate or certain investments held outside the United States.
• Using the wrong asset valuation date or failing to obtain supporting appraisals.
• Missing the nine-month filing deadline.
• Assuming an extension to file also extends the time to pay.
• Overlooking applicable treaty provisions or required supporting documents.

These mistakes can lead to delays, additional costs, or tax complications for the estate and its beneficiaries.

How AIM Financial Can Help

Handling an estate with international connections can be challenging, especially when U.S. tax forms, foreign records, asset valuations, and deadlines are involved. AIM Financial helps individuals and families in Grand Rapids, Kentwood, Wyoming, and throughout West Michigan understand tax preparation requirements and identify the information needed to address their tax situations.

If you are an executor, beneficiary, or family member dealing with an estate that includes U.S. assets owned by a non-U.S. citizen, contact AIM Financial to discuss your tax preparation needs and determine the appropriate next steps. Where specialized international estate-tax advice or formal legal representation is necessary, a qualified estate-tax attorney, CPA, or other appropriately credentialed tax professional may also be needed.

Do not wait until the deadline is approaching. Understanding Form 706-NA early can help an estate organize its records, evaluate its filing obligations, and avoid preventable complications.

For official requirements and current instructions, visit the IRS website at IRS.gov/Form706NA.

This article is for general educational purposes and is not individualized tax or legal advice.