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•

Par value where needed for

Does the notice of election include a

Does the agreement designate an

identification;

statement as to whether there were

agent to act for the parties to the

•

Price per share;

any periods during the 8-year period

agreement in all dealings with the

•

Exact name of corporation;

preceding the decedent’s date of

IRS on matters arising under

•

Principal exchange upon which sold,

death during which the decedent or

section 2032A?

if listed on an exchange; and

a member of his or her family did

•

Nine-digit CUSIP number (defined

not (a) own the property to be

Has the agreement been signed

below).

specially valued, (b) use it in a

by the designated agent and does

Bonds. For bonds, indicate:

qualified use, or (c) materially

it give the address of the agent?

•

Quantity and denomination;

participate in the operation of the

•

Name of obligor;

farm or other business? (See

Schedule B—Stocks and

•

Date of maturity;

section 2032A(e)(6).)

•

Interest rate;

Bonds

•

Interest due date;

Does the notice of election include,

•

Principal exchange, if listed on an

for each item of specially valued

Before completing Schedule B,

exchange; and

property, the name of every person

•

see the examples illustrating the

TIP

Nine-digit CUSIP number.

taking an interest in that item of

alternate valuation dates being

If the stock or bond is unlisted, show

specially valued property and the

adopted and not being adopted, below.

the company’s principal business office.

following information about each

If the total gross estate contains any

such person: (a) the person’s

If the gross estate includes any

stocks or bonds, you must complete

address, (b) the person’s taxpayer

interest in a trust, partnership, or

Schedule B and file it with the return.

identification number, (c) the

closely held entity, provide the

On Schedule B, list the stocks and

person’s relationship to the

employer identification number (EIN) of

bonds included in the decedent’s gross

decedent, and (d) the value of the

the entity in the description column on

estate. Number each item in the

property interest passing to that

Schedules B, E, F, G, M, and O, where

left-hand column.

person based on both FMV and

applicable. You must also provide the

Note. Unless specifically exempted by

qualified use?

EIN of the estate (if any) in the

an estate tax provision of the Code,

description column on the above-noted

bonds that are exempt from federal

schedules, where applicable.

Does the notice of election include

income tax are not exempt from estate

affidavits describing the activities

The CUSIP (Committee on Uniform

tax. You should list these bonds on

constituting material participation

Security Identification Procedure)

Schedule B.

and the identity of the material

number is a nine-digit number that is

participants?

Public housing bonds includible in

assigned to all stocks and bonds traded

the gross estate must be included at

on major exchanges and many unlisted

Does the notice of election include a

their full value.

securities. Usually, the CUSIP number

legal description of each item of

is printed on the face of the stock

If you paid any estate, inheritance,

specially valued property?

certificate. If you do not have a stock

legacy, or succession tax to a foreign

certificate, the CUSIP may be found on

country on any stocks or bonds

the broker’s or custodian’s statement or

(In the case of an election made for

included in this schedule, group those

qualified woodlands, the information

by contacting the company’s transfer

stocks and bonds together and label

included in the notice of election must

agent.

them “Subjected to Foreign Death

include the reason for entitlement to the

Taxes.”

Woodlands election.)

List interest and dividends on each

Valuation

stock or bond on a separate line.

Any election made under section 2032A

List the FMV of the stocks or bonds.

Indicate as a separate item

will not be valid unless a properly

The FMV of a stock or bond (whether

dividends that have not been collected

executed agreement (Schedule A-1,

listed or unlisted) is the mean between

at death and are payable to the

Part 3) is filed with the estate tax return.

the highest and lowest selling prices

decedent or the estate because the

To ensure that the agreement satisfies

quoted on the valuation date. If only the

decedent was a stockholder of record

the requirements for a valid election,

closing selling prices are available, then

on the date of death. However, if the

use the following checklist:

the FMV is the mean between the

stock is being traded on an exchange

quoted closing selling price on the

and is selling ex-dividend on the date of

valuation date and on the trading day

Has the agreement been signed

the decedent’s death, do not include

before the valuation date.

by each qualified heir having an

the amount of the dividend as a

interest in the property being

If there were no sales on the

separate item. Instead, add it to the

specially valued?

valuation date, figure the FMV as

ex-dividend quotation in determining

follows:

the FMV of the stock on the date of the

Has every qualified heir expressed

1. Find the mean between the

decedent’s death. Dividends declared

consent to personal liability under

on shares of stock before the death of

highest and lowest selling prices on the

nearest trading date before and the

the decedent but payable to

section 2032A(c) in the event of

stockholders of record on a date after

nearest trading date after the valuation

an early disposition or early

date. Both trading dates must be

the decedent’s death are not includible

cessation of qualified use?

reasonably close to the valuation date.

in the gross estate for federal estate tax

purposes and should not be listed here.

2. Prorate the difference between

Is the agreement that is actually

the mean prices to the valuation date.

signed by the qualified heirs in a

Description

3. Add or subtract (whichever

form that is binding on all of the

Stocks. For stocks, indicate:

applies) the prorated part of the

qualified heirs having an interest

•

Number of shares;

difference to or from the mean price

•

in the specially valued property?

Whether common or preferred;

figured for the nearest trading date

•

Issue;

before the valuation date.

-16-

Part Instructions

Instructions For Form 706 - United States Estate (And Generation-Skipping Transfer) Tax Return - 2011 Page 16

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