The federal estate tax return — required for larger estates, and carrying the portability election that protects surviving spouses regardless of estate size.
Form 706, the United States Estate (and Generation-Skipping Transfer) Tax Return, reports the value of a decedent's gross estate and calculates any federal estate tax owed. It is separate from the income tax return (Form 1040 or 1041) and deals specifically with the transfer of wealth at death.
For decedents dying in 2026, the federal estate tax exemption is $15,000,000 per individual ($30 million for married couples). This exemption was permanently raised by the One Big Beautiful Bill Act and is now indexed for inflation — the scheduled sunset that would have dropped it to ~$7 million has been repealed. Estates below the threshold owe no federal estate tax.
Even when an estate owes no estate tax, filing Form 706 may still be the right move — specifically to elect portability and preserve the Deceased Spousal Unused Exclusion (DSUE). If a spouse dies with an estate below $15 million, the unused exemption can be transferred to the surviving spouse, potentially shielding up to $30 million combined. But this election only happens if Form 706 is timely filed. Missing the deadline means losing the DSUE permanently.
Alabama does not have a separate state estate tax. However, if the decedent owned property in other states, those states' rules may apply — and many states have much lower exemption thresholds than the federal level. State portability is generally not available.
Form 706 is due nine months after the date of death. A six-month extension is available, bringing the extended deadline to 15 months. Any tax owed is still due at the nine-month deadline — the extension covers the filing only. The portability election must be made by the filing deadline including extensions.