If a decedent’s gross estate is valued at less than $5 million, do I still have to file a Form 706?

No. For a person who dies in 2012 with an estate valued at no more than $5.12 million, no federal estate tax return (Form 706) is due. However, you may still have to file a state estate tax return (check with the state in which the decedent was domiciled at death to determine its filing threshold, if any). You may also have to file federal (and possibly state) income tax returns for the decedent.