Detailed answer: which federal estate or fiduciary returns might be required

There are two different kinds of federal returns commonly called “estate” returns. Which one (if any) you must file depends on what type of tax obligation exists, not on whether assets were distributed to beneficiaries.

1) Federal estate tax return (Form 706)

Form 706 (the federal estate tax return) reports the decedent’s gross estate, allowable deductions, and computes any federal estate tax due. Filing Form 706 depends on the size of the decedent’s gross estate (including certain lifetime gifts and other adjustments) compared with the federal basic exclusion amount that applied in the year of death. Even if the estate made no distributions to beneficiaries, Form 706 is required if the gross estate plus certain taxable gifts exceed that exclusion.

Key points:

• Check the decedent’s year-of-death basic exclusion amount and the Form 706 filing rules on the IRS website. See Form 706 information: https://www.irs.gov/forms-pubs/about-form-706
• Form 706 is generally due nine months after the date of death. You can request an extension of time to file using Form 4768. See: https://www.irs.gov/forms-pubs/about-form-4768
• Filing is about the value of the estate — not whether funds were distributed. The executor must determine the estate’s gross value even for estates that remain intact during administration.

2) Federal fiduciary income tax return (Form 1041)

Form 1041 reports taxable income generated by the estate or trust during the administration period. You must file Form 1041 for an estate when the estate has gross income of $600 or more for the tax year, or if a beneficiary is a nonresident alien. Income includes interest, dividends, rent, profit from the sale of estate assets, and other income realized while the estate existed — even if the estate makes no distributions.

Key points:

• If the estate received $600 or more of gross income in a calendar year, the personal representative generally must file Form 1041. See Form 1041 information: https://www.irs.gov/forms-pubs/about-form-1041
• Even if no money left the estate, interest or dividends earned while assets remained in estate accounts can create a filing requirement.
• The estate must obtain an Employer Identification Number (EIN) from the IRS before filing Form 1041. See Publication 559 for guidance on EINs and filing responsibilities: https://www.irs.gov/publications/p559
• Form 1041 is generally due by the 15th day of the fourth month after the estate’s tax year ends (for calendar-year estates, that is typically April 15). The Form 1041 instructions describe due dates and extensions.

3) Final individual income tax return for the decedent

The decedent’s final individual return (Form 1040) for the year of death must be filed for income earned up to the date of death. This is separate from estate filings and still required even if no distributions occurred.

How to decide what to file

Step-by-step checklist:

1. Gather account statements and records showing the value of all the decedent’s assets at the date of death (bank accounts, brokerage accounts, retirement accounts, life insurance, real estate, etc.).
2. Determine whether the gross estate plus any taxable gifts exceeds the federal filing threshold for Form 706 (see Form 706 page for the relevant year and rules).
3. Determine whether the estate produced $600 or more of gross income during the administration period; if so, prepare to file Form 1041 and get an EIN.
4. File the decedent’s final Form 1040 for the year of death.
5. If you determine a return is required but you need more time, file the appropriate IRS extension form(s) before the deadline.

If you are uncertain whether the gross estate reaches the federal threshold, consult a tax advisor or probate attorney. Estimating values, applying deductions, and computing adjusted taxable gifts can be complex.

For IRS guidance and forms:

• Form 706 (Estate Tax): https://www.irs.gov/forms-pubs/about-form-706
• Form 1041 (U.S. Income Tax Return for Estates and Trusts): https://www.irs.gov/forms-pubs/about-form-1041
• Form 4768 (Extension of Time to File a Return and/or Pay U.S. Estate Taxes): https://www.irs.gov/forms-pubs/about-form-4768
• Publication 559 (Survivors, Executors, and Administrators): https://www.irs.gov/publications/p559

Wisconsin-specific note: confirm whether any state filing is required with the Wisconsin Department of Revenue. See: https://www.revenue.wi.gov/

Helpful hints for executors and administrators

• Don’t assume “no distributions” means “no filing.” Check for income earned by estate assets and check the federal estate tax threshold for the year of death.
• Obtain an EIN for the estate early if you expect to file Form 1041 or if banks require it to keep accounts in the estate’s name.
• Keep timely, detailed records of all estate receipts and expenses. Estate expenses can sometimes reduce taxable income or be deductible on Form 1041.
• If the estate holds assets that continue to produce interest or dividends, track those amounts even if the money remains in the account.
• If you think Form 706 might be required, get professional help for valuation and deduction issues — missed filings can carry severe penalties.
• File for extensions before deadlines if you need more time to assemble valuation or income information.
• Contact the Wisconsin Department of Revenue or a local tax advisor about any state-level obligations.
• If beneficiaries are nonresident aliens, special federal filing rules can apply — consult a tax advisor.