Massachusetts Estate Tax Return

Estate Tax Return
M-706
Massachusetts Department of Revenue

Name of decedent

Form M-706
Massachusetts Estate Tax Return

3

Date of death (mm/dd/yyyy)

Social Security number

3

3

Street address at time of death

City/Town

State

Zip

County of probate court

Case/docket number

Name of executor/personal representative

Designation

Country

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 revision 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.

Rev. 10/18

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:
01a Name of deceased spouse

Single

Married

Widow or widower
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

Rev. 10/18

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

Rev. 10/18

Rev. 10/18

a. Property street address

4.

3.

2.

1.

d. Certificate of
title number

d. Certificate of
title number

d. Certificate of
title number

d. Certificate of
title number

e. Date of deed
(mm/dd/yyyy)

a. Property street address

e. Date of deed
(mm/dd/yyyy)

a. Property street address

e. Date of deed
(mm/dd/yyyy)

a. Property street address

e. Date of deed
(mm/dd/yyyy)

f.
Registry in which deed was recorded

f.
Registry in which deed was recorded

f.
Registry in which deed was recorded

f.
Registry in which deed was recorded

g. Book number
of deed

b. City/town

g. Book number
of deed

b. City/town

g. Book number
of deed

b. City/town

g. Book number
of deed

b. City/town

3

3

c. Zip code

h. Page number
of deed

c. Zip code

h. Page number
of deed

c. Zip code

h. Page number
of deed

c. Zip code

h. Page number
of deed

Complete the table below for each property in which the decedent had an interest.

Social Security number

Date of death (mm/dd/yyyy)

Part 7. Real estate subject to Massachusetts estate tax lien.

Name of decedent

FORM M-706, PAGE 5

6

General Information

Note: All references to the Internal Revenue Code,
the Code or any section of the Code refer to the
Internal Revenue Code in effect on December 31,
2000. All references to the federal Form 706, United
States Estate (and Generation-Skipping Transfer)
Tax Return or to the Instructions for Form 706 refer to the July 1999 revisions of the federal estate
tax return and the instructions.

United States Estate (and Generation-Skipping
Transfer) Tax Return and is entered on line 15 of
that form. Portions of the July 1999 revision of the
federal Form 706 are not necessary for the computation of the credit for state death taxes and need
not be completed. Completion of the following portions of the July 1999 revision of the federal Form
706 is not required:

Recent Changes

• lines 16 through 27 on page 1;

• The Form M-706 has been revised, and can
now be filed by entering information electronically
through MassTaxConnect. Filing through MassTaxConnect will result in faster processing, and a
quicker generation of the Massachusetts Estate
Closing Letter and the Certificate Releasing Massachusetts Estate Tax Lien.

• the computation of the credit for federal gift
taxes on pre-1977 gifts (section 2012);

• The Power of Attorney sections on both the
M-706 and M-4422 have been eliminated. In order
to grant a Power of Attorney, Form M-2848 must
be filed.

• Schedule P, Credit for Foreign Death Taxes;
• Form(s) 706-CE, Certificate of Payment of Foreign Death Tax;
• Schedule Q, Credit for Tax on Prior Transfers;
and
• Schedule R, Generation-Skipping Transfer Tax

• The Form M-4768 has been modified to accommodate applications for an extension of time
to file and an extension of time to pay. The
M-4768A has been eliminated. The requirements
to qualify for a valid extension of time to file and
to pay remain unchanged.

The credit for state death taxes computed on line
15 of the July 1999 revision of the federal Form
706 is entered on line 2 of Part 1 of either Form
M-706, Massachusetts Estate Tax Return, or Form
M-4422, Application for Certificate Releasing Massachusetts Estate Tax Lien. The credit for state
death taxes is used to compute the Massachusetts
estate tax.

• New lines have been added to the M-706 which
correspond directly to line items on the federal
Form 706. (July 1999 revision). These are found
on page 2, and in Parts 5 and 6.

Effect of Goodridge decision on
Internal Revenue Code in effect
on December 31, 2000

• Form M-792 will no longer need to be attached
to the M-706 to effect a release of the Massachusetts Estate Lien. Rather, the information provided
on the M-706, Part 7 will be used for this purpose. Once any tax due is paid, and the return is
accepted as filed, the Massachusetts Estate Tax
Closing Letter, as well the Certificate Releasing
Massachusetts Estate Lien, will be issued. Note: It
is important that Part 7 of the M-706 be fully completed for each property needing a lien release.
Failure to provide all the information necessary
will delay issuance of the Certificate Releasing
Massachusetts Estate Lien.

Beginning May 16, 2004 Massachusetts law permits same-sex couples to marry. See Goodridge
v. Department of Public Health, 440 Mass. 309
(2003) and Technical Information Release 04-17,
Massachusetts Tax Issues Associated with SameSex Marriages. As a result of the Goodridge decision, the term “spouse”, for Massachusetts estate
tax purposes, includes partners in a same-sex
marriage. The following three provisions of the December 31, 2000 Internal Revenue Code reflect the
Massachusetts estate tax treatment of spouses in
a same-sex marriage.

Calculating the Estate Tax
Effective for dates of death on or after January 1,
2003, the Massachusetts estate tax is an amount
computed using the credit for state death taxes
allowed by section 2011 of the Internal Revenue
Code in effect on December 31, 2000. M.G.L. c.
65C, § 2A. Future changes to the federal estate tax
law will not affect the Massachusetts estate tax law,
as the reference for Massachusetts estate tax purposes is the Internal Revenue Code in effect on December 31, 2000.
The credit for state death taxes is computed using
the July 1999 revision of the federal Form 706,

Marital deduction. A Massachusetts marital deduction is allowable for property passing from a
decedent to his/her surviving same-sex spouse
to the same extent that property left to a surviving
husband or wife is allowable as a marital deduction provided the requirements of IRC sec. 2056
are met.
Joint property. Spouses in a same-sex marriage
are allowed to include in the gross estate of a decedent one-half the value of certain joint interests
under IRC sec. 2040(b) in the same manner that a
husband and wife are permitted this treatment provided the interest in property meets the requirements of IRC sec. 2040(b)(2).

Gifts to a third party. IRC sec. 2513 permits a
gift made by one spouse to any person to be considered as made one-half by the donor and onehalf by the donor’s spouse. This election is
available to spouses in a same-sex marriage. Although Massachusetts does not have a gift tax,
this section can affect the application of related
estate tax provisions (i.e., the filing threshold).
Note: This election requires the filing of pro forma
federal gift tax returns with the Massachusetts
Estate Tax Unit. Since same-sex marriage is not
recognized for federal tax purposes, partners
who elect to have a gift of one spouse considered
as made one-half by each spouse are required to
file pro forma federal Form 709 or Form 709-A in
accordance with the filing requirements of IRC
sec. 6075(b). A copy of the federal gift tax returns
filed with the Internal Revenue Service must also
be filed with the pro forma gift tax returns.

Privacy Act Notice
Under the authority of 42 U.S.C. sec. 405(c)(2)(C)(i),
and M.G.L. c. 62C, sec. 5, the Department of Revenue has the right to require an individual to furnish
his or her Social Security number on a state tax
return. This information is mandatory. The Department of Revenue uses Social Security numbers
for taxpayer identification to assist in processing
and keeping track of returns and in determining
and collecting the proper amount of tax due. Under
M.G.L. c. 62C, sec. 40, the taxpayer’s identifying
number is required to process a refund of overpaid
taxes. Although tax return information is generally
confidential pursuant to M.G.L. c. 62C, sec. 21, the
Department of Revenue may disclose return information to other taxing authorities and those entities specified in M.G.L. c. 62C, secs. 21, 22 or 23,
and as otherwise authorized by law.

Massachusetts Filing
Requirements
The filing thresholds and exempt amounts for Massachusetts estate tax purposes are the following:
Year of death
2003. . . . . . . . . . . . . . . . .
2004. . . . . . . . . . . . . . . . .
2005. . . . . . . . . . . . . . . . .
2006 and thereafter. . . . .

Threshold/exemption
$2,700,000
$2,850,000
$2,950,000
$1,000,000

To determine whether a return must be filed for a
decedent’s estate, add:
1. the adjusted taxable gifts (under section 2001(b))
made by the decedent after December 31, 1976;
2. the total specific exemption allowed under section 2521 (as in effect before its repeal by the Tax
Reform Act of 1976) for gifts made by the decedent after September 8, 1976; and
3. the decedent’s gross estate valued at the date
of death.

General Information

The executor/personal representative must file
Form M-706, Massachusetts Estate Tax Return,
for any estate in which the sum of the above three
items exceeds the exempt amount for the year of
the decedent’s death. For further information, see
Technical Information Release 02-18, Tax Changes
Contained in “An Act Enhancing State Revenues”
and Related Acts and DOR Directive 03-2, Issues
Arising from Decoupling the Massachusetts Estate
Tax from the Federal Estate Tax. In addition, see
“Which Estates Must File” on page 2 of the July
1999 revision of the Instructions for Form 706.
Beginning with deaths occurring in 2003, the filing
thresholds and exempt amounts are lower for
Massachusetts estate tax purposes than for federal estate tax purposes.
Adjusted taxable gifts affect the Massachusetts filing threshold but are not added to the taxable estate (page 1, line 4 of the July 1999 revision of
the federal Form 706) for the computation of the
credit for state death taxes. Adjusted taxable
gifts are added to the taxable estate for the computation of tentative tax using Table A, the unified
rate schedule, that is on page 12 of the July 1999
revision of the Instructions for Form 706.
The July 1999 revision of the Instructions for Form
706 has information concerning adjusted taxable
gifts in the “Instructions for Part 2. Lines 4 and
9” on page 4 and in the “Worksheet TG-Taxable
Gifts Reconciliation” and the “Line 4 WorksheetAdjusted Taxable Gifts Made After 1976” on page
5. See the “Instructions for Part 2. Line 12” for
information concerning gifts made after September 8, 1976 and before January 1, 1977.
The executor/personal representative of a nonresident decedent who owned or transferred, for less
than full and adequate consideration, real estate or
tangible personal property located in Massachusetts must file a Form M-706, Massachusetts Estate Tax Return, if the sum of the three items described above exceeds the exempt amount for the
year of the decedent’s death. The estate of a nonresident decedent may have a Massachusetts filing requirement even if the value of the Massachusetts real or tangible personal property is less than
the exempt amount for the year of the decedent’s
death. The estate tax for the estate of a nonresident decedent with Massachusetts property is
computed in Part 3 of Form M-706 or Form
M-4422. The gross value of the real property and
tangible personal property in Massachusetts is
used in the calculation. Do not reduce the value
of the decedent’s Massachusetts property by
the amount of any mortgage or lien. The percentage of the estate in Massachusetts that is
computed on line 4 in Part 3 of Form M-706 or
Form M-4422 should be calculated to six decimal
places. The estate of a nonresident decedent must
also file Form M-NRA, Massachusetts Nonresi-

dent Decedent Affidavit. The gross values of all
real and/or tangible personal property having an
actual situs in Massachusetts and included in the
decedent’s gross estate are listed on line 26 of
Form M-NRA.

Definition of an Executor
For purposes of the Massachusetts estate tax, an
executor/personal representative is defined as the
executor/personal representative or administrator
of the decedent’s estate, or, if there is no executor/personal representative or administrator appointed, qualified and acting within the Commonwealth, then any person in actual or constructive
possession of any property of the decedent.
M.G.L. c. 65C, § 6(a).

Due Dates and Extensions
The Massachusetts estate tax return, with all required documents, and the payment for the tax, if
any, must be filed within nine months after the date
of the decedent’s death.
Requests for an extension of time to file or to pay
must be made prior to the due date of the return
on Form M-4768, Massachusetts Estate Tax Extension Application. An extension of time to file
shall only be granted if the application is accompanied by the estimated tax payment unless the
estate is also requesting an extension of time to
pay the estate tax. An extension of time to file is
void if the total amount paid before the due date
of the return is less than 80% of the tax finally determined to be due unless the estate was granted
an extension of time to pay the estate tax.

Payment of Tax and Filing
the Return
New: Payments can now be made online at mass.
gov/masstaxconnect. Also, credit cards are now
accepted for estate tax payments.
Payment of the estate tax can also be made by a
check payable to the Commonwealth of Massachusetts. Enter the decedent’s full name and Social Security number in the memo portion of the check.
The executor/personal representative signing the
return is personally liable for payment of any tax
shown on the return if it is not otherwise paid. The
return and the tax payment should be sent to the
Massachusetts Estate Tax Unit, PO Box 7023,
Boston, MA 02204.

Interest and Penalties
Interest on any unpaid tax accrues from the original due date of the return which is nine months
after the date of the decedent’s death. The Department determines the quarterly interest rate on underpayments pursuant to M.G.L. c. 62C, § 32.
The interest rate for underpayments is the Federal
short-term rate determined under Section

7

6621(b) of the Internal Revenue Code, as amended
and in effect for the taxable year, plus four percentage points, compounded daily. Effective July
1, 2003, the interest rate on overpayments pursuant to M.G.L. c. 62C, § 40 is the Federal shortterm rate determined under Section 6621(b) of the
Internal Revenue Code, as amended and in effect
for the taxable year, plus two percentage points,
simple interest. The interest rates for underpayments and overpayments may change quarterly
and are announced in a quarterly Technical Information Release.
The penalty for failure to file Form M-706 by the
due date, or within an authorized extension of time,
is 1% per month (or fraction thereof) to a maximum of 25% of the tax as finally determined to be
due. M.G.L. c. 62C, § 33(a). The penalty for failure
to pay the tax reported as due on Form M-706,
by the due date, or within an authorized extension
of time, is 1% per month (or fraction thereof) to
a maximum of 25% of the tax reported to be due.
M.G.L. c. 62C, § 33(b).

Required Documents
All estates that are required to file a Massachusetts estate tax return must submit the following
documents:
• Form M-706, Massachusetts Estate Tax Return;
• the July 1999 revision of the federal Form 706,
United States Estate (and Generation-Skipping
Transfer) Tax Return, with all attachments described in the instructions for that form; and
• a check, payable to the Commonwealth of Massachusetts, for the Massachusetts estate tax, if any,
that is due with the decedent’s full name and Social Security number entered in the memo portion of the check.
New: Payments can now be made online at mass.
gov/masstaxconnect. Also, credit cards are now
accepted for estate tax payments.

Computation of Credit for State
Death Taxes (Code § 2011)
The credit for state death taxes is computed using
the taxable estate from line 3 of the July 1999 revision of the federal Form 706. The federal taxable
estate is reduced by $60,000 and the credit is computed using the rates contained in Table B, Computation of Maximum credit for State Death Taxes.
Table B and the Table B Worksheet are on page
12 of the July 1999 revision of the Instructions
for Form 706.
If the credit for state death taxes computed using
Table B is greater than the amount computed on
line 14 of the federal Form 706, enter the amount
from line 14 on line 15. The amount entered on
line 15 may not be more than the amount entered
on line 14. For further information on the limitation

8

General Information

based on the amount of the tax, see IRC § 2011(e).
In the calculation of the amount on line 14, the
applicable credit amount entered on line 11 of the
July 1999 revision of the federal Form 706 is the
amount allowed by the December 31, 2000 Code
that is different than the applicable credit amount
allowed by current federal estate tax law. The applicable credit amounts for the July 1999 revision
of the federal Form 706 are the following:
Year of death
2003. . . . . . . . . . . . . . . . .
2004. . . . . . . . . . . . . . . . .
2005. . . . . . . . . . . . . . . . .
2006 and thereafter. . . . .

Credit amount
$229,800
$287,300
$326,300
$345,800

See the instructions for Line 11, Unified Credit (Applicable credit amount) on page 4 of the July 1999
revision of the Instructions for Form 706.

Marital Deduction for Qualified
Terminable Interest Property
(“QTIP”)
An estate may elect to claim a marital deduction
for Qualified Terminable Interest Property or
property interests. The QTIP election allowed by
IRC § 2056(b)(7) is made by listing the qualified
terminable interest property on Schedule M of the
July 1999 revision of the federal Form 706 and
deducting its value. In addition, the estate must
answer the question regarding the QTIP election
on page 2, line 7 of Form M-706, Massachusetts
Estate Tax Return. The executor or other fiduciary
is not required to make the same QTIP election for
federal estate tax purposes in order to make the
election for Massachusetts purposes. The “Description of property interests passing to surviving
spouse” section of Schedule M of the federal Form
706 must clearly indicate the property for which
a Massachusetts only QTIP election is made. The
election is irrevocable. See the instructions for
Schedule M, Bequests, etc., to Surviving Spouse
that begin on page 27 of the July 1999 revision
of the federal Form 706.
Section 2044 of the December 31, 2000 Code includes the value of the property for which a previous section 2056(b)(7) election was made in
the gross estate of the surviving spouse. Section
2044 property is reported on Schedule F, Other
Miscellaneous Property of the July 1999 revision
of the federal Form 706. As a result of different
federal and Massachusetts QTIP elections in the
estate of the first-to-die spouse, the value of the
QTIP property included in the estate of the second-to-die spouse may be different for federal and

Massachusetts estate tax purposes. See the instructions for Schedule F that are on page 20 of
the July 1999 revision of the federal Form 706.

purchase and sale agreement or the mortgage
commitment should be submitted with a letter explaining that the M-706 was previously filed.

For further information regarding section 2056(b)(7)
property and section 2044 property, see “Issue
1” of DOR Directive 03-2, Issues Arising from Decoupling the Massachusetts Estate Tax from the
Federal Estate Tax.

New: Form M-4422 can now be filed on line at
mass.gov/masstaxconnect. This is the quickest
and easiest way to obtain the Massachusetts Certificate Release of Estate Lien.

Massachusetts Estate Tax Lien
on Real Estate
The Commonwealth automatically acquires a lien
against all Massachusetts real estate included in
a decedent’s gross estate. Unless the tax is paid
in full, the lien is valid for 10 years from the decedent’s date of death. M.G.L. c. 65C, § 14.

Massachusetts Filing Requirement to Obtain a Release of Lien
When the filing of a Massachusetts Estate Tax Return is required to obtain a release of this lien because the size of the estate equals or exceeds the
Massachusetts filing threshold for the year of the
decedent’s death, an executor must file Form
M-706. The filing must be accompanied by a copy
of the recorded deed, certificate of title or the probate instrument that created the decedent’s interest and a copy of the July 1999 revision of the
federal estate tax return, Form 706, with all attachments described in the instructions for that form.
If the estate is required to file a current federal
Form 706, submit a copy of that return with any
required attachments that are not included with
the July 1999 version of the federal Form 706. The
estate of a nonresident decedent must submit
Form M-NRA, Massachusetts Nonresident Decedent Affidavit.
When a sale of real estate or a mortgage commitment is pending, the Estate Tax Unit will expedite
the release of the estate tax lien. The estate may
request the release of lien on Form M-4422, Application for Certificate Releasing Massachusetts Estate Tax Lien, if (1) the date for filing the estate
tax return has not yet passed, and (2) Form M706 cannot be completed prior to the date of the
sale, a copy of the purchase and sale agreement
or the mortgage commitment must be submitted
with the Form M-4422. If the estate is filing the
Form M-706 and a sale of real estate or a mortgage commitment is pending, a copy of the purchase and sale agreement or the mortgage
commitment should be submitted at the time of
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

Releasing Lien If There Is No
Massachusetts Filing
Requirement
If a Massachusetts Estate Tax Return is not required to be filed because the size of the estate
does not equal or exceed the Massachusetts filing
threshold for the year of the decedent’s death, an
affidavit of the executor or other fiduciary, subscribed to under the pains and penalties of perjury,
recorded in the appropriate registry of deeds accurately stating that the gross estate of the decedent does not necessitate a Massachusetts estate
tax filing, shall release the gross estate of the lien
imposed by M.G.L. c. 65C, § 14.
For further information, see “Issue 2” of DOR Directive 03-2, Issues Arising from Decoupling the Massachusetts Estate Tax from the Federal Estate Tax.

Report of Federal Estate Tax
Changes
Federal estate tax changes must be reported within
two months of receipt of a final determination (for
example, the federal closing letter, agreed upon
federal audit changes, agreed upon IRS Appeals
Office changes, Tax Court decision, etc.) of the
federal estate tax change(s). An amended Form
M-706 should be used to report any change(s).
The Form M-706 is an “amended” return when the
box on page 1 of the return is checked. For further
information regarding what constitutes a federal
change, see Technical Information Release 99-14,
Expanded Definition of “Federal Change.” Attach
a copy of the final federal determination and pay
any additional Massachusetts estate tax, interest
and penalty, if any, due as a result of the change.
The change(s) must relate to an entry that was
reported on the July 1999 revision of the federal
Form 706.
If a refund is indicated as a result of the federal
estate tax change and a Massachusetts Estate Tax
Closing Letter has previously been issued, an
amended M-706 must be filed within one year of

Line by Line Instructions

receipt of the final federal determination. The
change(s) must relate to an entry that was reported on the July 1999 revision of the federal
Form 706.

Part 3. Computation of Tax for Estate of
Nonresident Decedent with Massachusetts
Property
Line 1. Enter the amount from Part 1, line 1.

Line by Line Instructions

Line 2. Enter the amount from Part 1, line 7.

Part 1. Tentative Massachusetts Estate Tax

Line 3. Enter the total gross value of all real
and/or tangible personal property having an actual situs in Massachusetts and included in the
decedent’s gross estate from line 26 of Form MNRA, Massachusetts Nonresident Decedent Affidavit. Do not deduct the value of any mortgage or
lien.

Line 1. Enter the total value of the decedent’s
gross estate from the July 1999 revision of the
federal Form 706, page 1, line 1. Do not reduce
the gross value by the amount of any property
subject to a power of appointment upon which an
inheritance tax on future interests has been settled and paid pursuant to M.G.L. c. 65, § 14.
Line 2. Enter the total allowable deductions (from
page 1, line 2 of U.S. Form 706 with a revised date
of July 1999 or from Part 6, line 11 of this return).
Line 3. Subtract line 2 from line 1.

Line 4. Divide Part 3, line 3 by Part 3, line 1. The
result should be computed to six decimal places.
Line 5. Multiply Part 3, line 2 by Part 3, line 4.
Enter the result in Part 3, line 5 and in Part 4, line
1.

Line 4. Adjustable taxable gifts (from page 1, line
4 of U.S. Form 706 with a revised date of July
1999).

Part 4. Massachusetts Estate Tax Due

Line 5. Add lines 3 and 4.

Line 2. Enter the amount of any late file and/or
late pay penalties. The penalty for failure to file a
tax return by the due date is 1% of the tax due,
per month (or fraction thereof) up to a maximum
of 25%. The penalty for late payment is 1% of
the tax due, per month (or fraction thereof) up to
a maximum of 25%.

Line 6. Enter the total gift tax payable (from page
1, line 9 of U.S. Form 706 with a revised date of
July 1999).
Line 7. Credit for state death taxes (from page 1,
line 15 of U.S. Form 706 with a revision date of
July 1999).

Part 2. Computation of Tax for Estate of
Massachusetts Resident Decedent with
Property in Another State
Line 1. Enter the amount from Part 1, line 1.
Line 2. Enter the amount from Part 1, line 7.
Line 3. Enter the amount of estate or inheritance
taxes actually paid to other states that would qualify
for the federal estate tax state death tax credit allowed by the December 31, 2000 Internal Revenue
Code. Attach documentation of the amount(s) paid.
Line 4. Enter the gross value of real estate and tangible personal property situated in other states. Do
not reduce the gross value by the amount of any
mortgages, liens or debts. Attach a schedule of
the non-Massachusetts property and identify the
schedule(s) of the July 1999 revision of the federal Form 706 where the non-Massachusetts
property is reported.
Line 5. Divide Part 2, line 4 by Part 2, line 1. The
result should be computed to six decimal places.
Line 6. Multiply Part 2, line 2 by Part 2, line 5.
Line 7. Enter the smaller of Part 2, line 3 or Part
2, line 6.
Line 8. Subtract Part 2, line 7 from Part 2, line 2.
Enter the result in Part 2, line 8 and in Part 4, line
1.

Line 1. Enter the amount from Part 1, line 7 or
Part 2, line 8 or Part 3, line 5, whichever applies.

Line 3. Interest on any unpaid tax accrues from
the original due date of the return. See “Interest
and Penalties” on page 3.
Line 4. Add lines 1 through 3. This is the total
amount due.
Line 5. Enter the total of all previous payments
made with any extension(s). Attach a copy of Form
M-4768, Application for Estate Tax Extension.
Line 6. Enter the total of all previous payments
but not payments made with any extension(s). Attach copies of prior filings with payment dates
and amounts.
Line 7. Add lines 5 and 6. This is the total payments made.
Line 8. 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.
Line 9. If line 4 is larger than line 7, subtract line
7 from line 4. If there is a balance owed the Commonwealth, make the check payable to the Commonwealth of Massachusetts and enter the decedent’s full name and Social Security number in
the memo portion of the check. Include any interest and penalties owed by the estate with the
payment. If there is a refund owed the estate, it
will be refunded to the estate.

9

Part 5. Total Gross Estate
All schedule references are to the schedules of
the U.S. Form 706 with a revision date of July
1999. U.S. Form 706 (rev. 1999) 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.

Part 6. Total Allowable Deductions
All schedule references are to the schedules of
the U.S. Form 706 with a revision date of July
1999. U.S. Form 706 (rev. 1999) 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.

Part 7. Real Estate Subject To
Massachusetts Estate Tax Lien
Complete this table for all Massachusetts property
in which the decedent had an interest. Note that
this table replaces the Form M-792, Certificate Releasing Massachusetts Estate Tax Lien.

Estate Tax Information
For further estate tax information, please call the
Estate Tax Unit at (617) 887-6930.
All estate tax forms and instructions are available
on the Department’s website. In addition, Technical Information Releases and Directives issued by
the Department of Revenue are published at the
Rulings and Regulations section of the Department’s website: www.mass.gov/dor.