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Question 9.—A general power of

Unless a treaty provides otherwise

Australia

Italy

appointment means any power of

(see Death Tax Treaties on page 1), use

Austria

Japan

appointment exercisable in favor of the

the following rules to determine whether

Denmark

Netherlands

Federal Republic

Norway

assets are located in the United States:

decedent, the decedent’s estate, the

of Germany

Republic of South Africa

decedent’s creditors, or the creditors of

1. Real estate and tangible personal

Finland

Sweden

the decedent’s estate, and includes the

property are located in the United States

France

Switzerland

right of a beneficiary to appropriate or

if they are physically located there. An

Greece

United Kingdom

consume the principal of a trust. For a

exception is made for works of art

Ireland

complete definition, see section 2041.

imported into the United States solely

If you are reporting any items on this

for public exhibition.

Schedule A

return based on the provisions of a

2. No matter where stock certificates

death tax treaty, you may have to attach

Before you complete Schedule A, you

are physically located, stock of

a statement to this return disclosing the

must determine what assets are

corporations organized in or under U.S.

return position that is treaty based. See

included in the decedent’s entire gross

law is property located in the United

Regulations section 301.6114-1 for

estate, wherever located. However, list

States, and all other corporate stock is

details.

on Schedule A only those assets

property located outside the United

included in the entire gross estate that

States.

Specific Instructions

are located in the United States. (Enter

3. Proceeds of insurance policies on

the total value of assets located outside

the decedent’s life are property located

the United States on line 2 of Schedule

Attachments

outside the United States.

B.)

4. Debts are generally property

If the decedent died testate, attach a

The “entire gross estate” is figured the

located in the United States if they are

certified copy of the will to Form

same way for a nonresident alien

debts of a U.S. citizen or resident, a

706-NA. For closely held or inactive

decedent as for a U.S. citizen or

domestic partnership or corporation, a

corporate stock, attach the balance

resident. It consists of all property the

domestic estate or trust, the United

sheets, particularly the one nearest the

decedent beneficially owned, wherever

States, a state or state’s political

valuation date, and statements of the

located, and includes the following

subdivision, or the District of Columbia.

net earnings or operating results and

property interests:

dividends paid for each of the 5

Debt obligations (whether registered or

1. Generally, the full value of property

preceding years. Attach any other

unregistered) are not considered located

the decedent owned at the time of

documents, such as appraisal lists,

in the United States if interest on them

death as a joint tenant with right of

needed for explanation. Also attach

would be eligible for the exemption from

survivorship (but if the surviving spouse

copies of all available U.S. gift tax

tax under section 871(h)(1) were such

is a U.S. citizen, then only half the value

returns the decedent filed. Other

interest received by the decedent at the

of property held by the decedent and

documents may be required as

time of his death.

surviving spouse either as joint tenants

explained in these instructions.

Also, a domestic corporation’s debt

with right of survivorship or as tenants

Attach an English translation to all

obligation is treated as located outside

by the entirety). For exceptions, see the

documents in other languages.

the United States if the interest from it

instructions on the reverse side of

(had it been received at the time of

Schedule E, Form 706.

How To Complete Form

death) would have been treated as

2. Property the decedent and a

income from outside the United States

706-NA

surviving spouse owned as community

because the corporation derived less

property to the extent of the decedent’s

First, enter the decedent’s name and the

than 20% of its gross income from

interest in the property under applicable

other information called for in Part I.

sources in the United States during its 3

state, possession, or foreign law.

tax years before the decedent’s death

Then answer all of the questions in Part

3. A surviving spouse’s dower or

III.

(section 861(a)(1)(A)).

curtesy interest and all substitute

The estate tax is imposed on the

5. The following deposits are treated

interests created by statute.

as located outside the United States if

decedent’s gross estate in the United

4. Proceeds of insurance on the

States, reduced by allowable

they are not effectively connected with

decedent’s life, generally including

deductions. Compute the gross estate in

conducting a trade or business within

proceeds receivable by beneficiaries

the United States on Schedule A.

the United States:

other than the estate.

Reduce the Schedule A total by the

a. A deposit with a U.S. bank or a

5. Several kinds of transfers the

allowable deductions to derive the

U.S. banking branch of a foreign

decedent made before death.

taxable estate on Schedule B, and figure

corporation.

the tax due using the Tax Computation

6. Property in which the decedent

b. A deposit or withdrawable account

schedule (Part II).

either held a general power of

with a savings and loan association

appointment at the time of death, or

chartered and supervised under Federal

Part III—General Information

used or released this power in certain

or state law.

Question 6a.—If you answer “Yes,”

ways before death.

c. An amount held by a U.S.

please attach a statement listing the

7. Certain annuities to surviving

insurance company under an agreement

citizenship of the decedent’s parents;

beneficiaries.

to pay interest.

whether the decedent became a U.S.

For additional information concerning

d. A deposit in a foreign branch of a

citizen through a naturalization

joint tenancies, tenancies by the entirety,

U.S. bank.

proceeding in the United States; and

annuities, life insurance, transfers during

If an asset is included in the total

when the decedent lost U.S. citizenship.

life, and powers of appointment, see

gross estate because the decedent

Question 6b.—If you answer “Yes,” but

Pub. 448.

owned it at the time of death, apply

maintain that avoiding U.S. taxes was

Enter on Schedule A all of the assets

these location rules as of the date of the

not one of the main reasons for the

that meet both the following tests:

decedent’s death. However, if an asset

decedent’s loss of citizenship, attach

They are included in the “entire gross

is included in the decedent’s total gross

documents to sustain your position. See

estate” and

estate under one of the transfer

Definitions on page 1.

provisions (sections 2035, 2036, 2037,

They are located in the United States.

Page 2

Instructions For Form 706-Na - United States Estate (And Generation-Skipping Transfer) Tax Return - 1993 Page 2

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