If you prepare federal estate tax returns, software should do more than reproduce a blank Form 706. The real work is organizing estate assets, deductions, elections, supporting statements and return review in a way that stays understandable from the first interview through the final filing copy.
1. Start With the Form 706 Workflow
Look for software that follows the return logically. A focused workflow should keep decedent and executor information together, then guide the preparer through the gross-estate schedules, deductions, tax computation and elections. This matters because Form 706 is built from many schedules rather than one short data-entry screen.
2. Compare Schedule Coverage
The IRS publishes a large group of Form 706 schedules covering real estate, stocks and bonds, cash, insurance, jointly owned property, lifetime transfers, deductions, marital transfers, charitable transfers, GST tax and other specialized items. Before buying, confirm that the current software edition supports the schedules your practice actually uses.
3. Review Calculation and Consistency Checks
Useful estate tax software should reduce repetitive arithmetic and flag missing or inconsistent data before the return is finalized. Software cannot replace professional judgment, but it can make the review process more systematic.
4. Consider Portability and DSUE Data
Portability elections can be an important reason to file Form 706 even when no estate tax is due. The IRS instructions explain the portability election and computation of the deceased spousal unused exclusion amount. If your practice handles portability returns, confirm that the software workflow makes those areas easy to identify and review.
5. Look at Print, PDF and Supporting Statements
Estate tax returns often involve attachments and supporting documentation. A strong preparation workflow should produce clear professional copies and make it easy to review the complete return before filing.
6. Decide Where Client Data Should Live
Some firms prefer cloud systems; others prefer local desktop records. LawFirmSoftware.com uses a Windows desktop approach so client and estate data remain under the office's direct control. Whichever model you choose, confirm backup, security and retention procedures.
7. Evaluate the Support Model
Complex forms generate questions. Compare whether support is domestic, whether you can reach a real person, what tax-year updates cost and whether the vendor clearly states what the current edition supports.
8. Avoid Buying More System Than You Need
A large tax suite can be appropriate for a high-volume firm, but a smaller practice may prefer dedicated Form 706 software with transparent pricing. The right choice depends on the number of returns, the schedules you encounter and whether the firm wants a broad tax platform or a focused estate tax tool.
Official IRS reference: About Form 706 and its schedules.