Required form 706?

[John3cpa]

Client's lawyer says that since there is " a claim filed against the estate" a 706 is required by statute regardless of the gross estate value. This is the first time I've seen this...just looking for confirmation. If it is in fact required, is there anything different about the filing of the 706? Date of death in Jan of 06 which would mean that the 706 is due in Oct of 06, unless 6 month extension is filed.

[Unregistered]

Client's lawyer says that since there is " a claim filed against the estate" a 706 is required by statute regardless of the gross estate value. This is the first time I've seen this...just looking for confirmation. If it is in fact required, is there anything different about the filing of the 706? Date of death in Jan of 06 which would mean that the 706 is due in Oct of 06, unless 6 month extension is filed.

I have not heard this, although estate tax is not my area of expertise. However, lawyers are notoriously wrong about tax law, but are trained to be convincing about anything that comes out of their mouths. Unless this is an experienced estate or tax lawyer, I would be very skeptical of his claim. Don't let the fact that he's an attorney throw you off. Why not be honest, and ask him which statute?

[OldJack]

More likely the attorney means that since there is a claim, the estate has to be accounted for and reported to probate court. The use of form 706 would be one way to account for or document the items of the estate. However, a claim would certainly reduce any estate tax, but it would not have anything to do with the requirements for filing of a federal form 706. State filing may be a different thing depending upon the state.