The instructions for Form 706, known as the U.S. estate and generation-skipping transfer tax return, show the inheritance tax rate schedule, according to the Internal Revenue Service. Forms and instructions for current and prior years are available on the IRS website.Continue Reading
For 2015, the federal estate tax exclusion is $5.43 million, according to Bankrate, with a top tax rate on large estates of 40 percent. The exclusion amount is inflation indexed, meaning that it generally increases a bit each year.
Estates under the exclusion are not required to file Form 706, unless a surviving spouse wishes to use the portability option. This election, chosen on the deceased spouse's Form 706, allows the survivor to add the unused portion of the decedent's exclusion to the survivor's exclusion, explains Bankrate.Learn more about Taxes