Where do I input information a on For 706 related to beneficiaried of a Irrevocable Trust

Forum|Forum|6 months ago
December 30, 2025
2 replies
15 views

My client passed away in October 2025.

She had a Living Trust which included Real Estate, a Brokerage Account and an IRA.

Upon her death the Living Trust was converted to an Irrevocable survivors Trust.

Her three sons are the owners of the survivors Trust.

Form 706 (1999 version) is only required to complete the Massachusetts Estate Tax Return.

I am trying to determine which schedule to use to report the assets in the Irrevocable Trust.

The only other assets in the estate are household items and a car.

I believe the Massachusetts Estate return needs to be filed to remove the Lien place on the Real Estate.

Any guidance would be greatly appreciated

Individual

Best answer by BobKamman

The 706 instructions are as clear as mud. I came to the conclusion that the real estate goes on Schedule A, and then on Schedule G you disclose the trust and where the assets are reported. And attach a copy of the document. The IRA and brokerage account would be reported on the schedules for those items (certainly the IRA, which would not be in the trust). But that might not be what they wanted in 1999, or what MA expects. If there's no tax owed, the worst they can do is send it back to you.

sjrcpa

Level 15

The Trust goes on Schedule G. Each asset of the trust and its value is also listed.

The more I know the more I don’t know.

P

Poltax75Author

Level 4

Thank you for your quick response.

BobKammanAnswer

Level 15

The 706 instructions are as clear as mud. I came to the conclusion that the real estate goes on Schedule A, and then on Schedule G you disclose the trust and where the assets are reported. And attach a copy of the document. The IRA and brokerage account would be reported on the schedules for those items (certainly the IRA, which would not be in the trust). But that might not be what they wanted in 1999, or what MA expects. If there's no tax owed, the worst they can do is send it back to you.

P

Poltax75Author

Level 4

Thank you.Why Massachusetts still uses 706 from 1999 is a mystery to me

BobKamman

Level 15

The 1999 version is probably the last one before the 2001 tax legislation that phased out the credit on the 706 for state tax paid. Most states repealed their estate tax, when there was no longer a credit for it on the federal return. Massachusetts did not, and is their tax still based on what the credit would have been 25 years ago? In any case, it's a nice place to visit but I wouldn't want to die there.

Sign up

Login with SSO

Let's get you signed in

Login with SSO

Scanning file for viruses.

This file cannot be downloaded