Form 706 - United States Estate (And Generation-Skipping Transfer) Tax Return Page 29
Download a blank fillable Form 706 - United States Estate (And Generation-Skipping Transfer) Tax Return in PDF format just by clicking the "DOWNLOAD PDF" button.
Open the file in any PDF-viewing software. Adobe Reader or any alternative for Windows or MacOS are required to access and complete fillable content.
Complete Form 706 - United States Estate (And Generation-Skipping Transfer) Tax Return with your personal data - all interactive fields are highlighted in places where you should type, access drop-down lists or select multiple-choice options.
Some fillable PDF-files have the option of saving the completed form that contains your own data for later use or sending it out straight away.
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46Form 706 (Rev. 11-01)
in the property passing to another
a life insurance, endowment, or annuity
unless you file the amended return on or
person and even if the terminable
contract is treated as passing from the
before the due date for filing the original
interest would otherwise have been
decedent to the surviving spouse, and
Form 706.
deductible under the exceptions
will not be treated as a nondeductible
The effect of the election is that the
described below for life estate and life
terminable interest if: (a) the surviving
property (interest) will be treated as
insurance and annuity payments with
spouse is entitled to receive the
passing to the surviving spouse and will
powers of appointment. For more
proceeds in installments, or is entitled to
not be treated as a nondeductible
information, see Regulations sections
interest on them, with all amounts
terminable interest. All of the other
20.2056(b)-1(f) and 20.2056(b)-1(g),
payable during the life of the spouse,
marital deduction requirements must still
Example (7).
payable only to the surviving spouse;
be satisfied before you may make this
(b) the installment or interest payments
If any property interest passing from
election. For example, you may not
are payable annually, or more frequently,
the decedent to the surviving spouse
make this election for property or
beginning not later than 13 months after
may be paid or otherwise satisfied out of
property interests that are not included
the decedent’s death; (c) the surviving
any of a group of assets, the value of
in the decedent’s gross estate.
spouse has the power, exercisable in
the property interest is, for the entry on
Qualified terminable interest
favor of the surviving spouse or of the
Schedule M, reduced by the value of
property is property (a) that passes
estate of the surviving spouse, to
any asset or assets that, if passing from
from the decedent, and (b) in which the
appoint all amounts payable under the
the decedent to the surviving spouse,
surviving spouse has a qualifying income
contract; (d) the power is exercisable by
would be nondeductible terminable
interest for life.
the surviving spouse alone and (whether
interests. Examples of property interests
The surviving spouse has a qualifying
exercisable by will or during life) is
that may be paid or otherwise satisfied
income interest for life if the surviving
exercisable by the surviving spouse in all
out of any of a group of assets are a
spouse is entitled to all of the income
events; and (e) no part of the amount
bequest of the residue of the decedent’s
from the property payable annually or at
payable under the contract is subject to
estate, or of a share of the residue, and
more frequent intervals, or has a
a power in any other person to appoint
a cash legacy payable out of the general
usufruct interest for life in the property,
any part to any person other than the
estate.
and during the surviving spouse’s
surviving spouse. If these five conditions
Example: A decedent bequeathed
lifetime no person has a power to
are satisfied only for a specific portion of
$100,000 to the surviving spouse. The
appoint any part of the property to any
the proceeds, see the section 2056(b)
general estate includes a term for years
person other than the surviving spouse.
regulations to determine the amount of
(valued at $10,000 in determining the
An annuity is treated as an income
the marital deduction.
value of the gross estate) in an office
interest regardless of whether the
Charitable Remainder Trusts. An
building, which interest was retained by
property from which the annuity is
interest in a charitable remainder trust
the decedent under a deed of the
payable can be separately identified.
will not be treated as a nondeductible
building by gift to a son. Accordingly, the
Amendments to Regulations sections
terminable interest if:
value of the specific bequest entered on
20.2044-1, 20.2056(b)-7 and
Schedule M is $90,000.
1. The interest in the trust passes from
20.2056(b)-10 clarify that an interest in
the decedent to the surviving spouse;
Life Estate With Power of
property is eligible for QTIP treatment if
and
Appointment in the Surviving Spouse.
the income interest is contingent upon
A property interest, whether or not in
2. The surviving spouse is the only
the executor’s election even if that
trust, will be treated as passing to the
beneficiary of the trust other than
portion of the property for which no
surviving spouse, and will not be treated
charitable organizations described in
election is made will pass to or for the
as a nondeductible terminable interest if:
section 170(c).
benefit of beneficiaries other than the
(a) the surviving spouse is entitled for
A “charitable remainder trust” is either
surviving spouse.
life to all of the income from the entire
a charitable remainder annuity trust or a
The QTIP election may be made for all
interest; (b) the income is payable
charitable remainder unitrust. (See
or any part of qualified terminable
annually or at more frequent intervals;
section 664 for descriptions of these
interest property. A partial election must
(c) the surviving spouse has the power,
trusts.)
relate to a fractional or percentile share
exercisable in favor of the surviving
of the property so that the elective part
Election To Deduct Qualified
spouse or the estate of the surviving
will reflect its proportionate share of the
Terminable Interests (QTIP)
spouse, to appoint the entire interest;
increase or decline in the whole of the
(d) the power is exercisable by the
You may elect to claim a marital
property when applying sections 2044 or
surviving spouse alone and (whether
deduction for qualified terminable
2519. Thus, if the interest of the
exercisable by will or during life) is
interest property or property interests.
surviving spouse in a trust (or other
exercisable by the surviving spouse in all
You make the QTIP election simply by
property in which the spouse has a
events; and (e) no part of the entire
listing the qualified terminable interest
qualified life estate) is qualified
interest is subject to a power in any
property on Schedule M and deducting
terminable interest property, you may
other person to appoint any part to any
its value. You are presumed to have
make an election for a part of the trust
person other than the surviving spouse
made the QTIP election if you list the
(or other property) only if the election
(or the surviving spouse’s legal
property and deduct its value on
relates to a defined fraction or
representative or relative if the surviving
Schedule M. If you make this election,
percentage of the entire trust (or other
spouse is disabled. See Rev. Rul. 85-35,
the surviving spouse’s gross estate will
property). The fraction or percentage
1985-1 C.B. 328). If these five conditions
include the value of the “qualified
may be defined by means of a formula.
are satisfied only for a specific portion of
terminable interest property.” See the
the entire interest, see the section
Qualified Domestic Trust Election
instructions for line 6 of General
2056(b) regulations to determine the
(QDOT)
Information for more details. The
amount of the marital deduction.
election is irrevocable.
The marital deduction is allowed for
Life Insurance, Endowment, or Annuity
If you file a Form 706 in which you do
transfers to a surviving spouse who is
Payments, With Power of Appointment
not a U.S. citizen only if the property
not make this election, you may not file
in Surviving Spouse. A property interest
an amended return to make the election
passes to the surviving spouse in a
consisting of the entire proceeds under
“qualified domestic trust” (QDOT) or if
Page 29
ADVERTISEMENT
0 votes
Related Articles
Related forms
Instructions For Form 706 - United States Estate (and Generation-skipping Transfer) Tax Return - 2011
Financial
Instructions For Form 706 - United States Estate (and Generation-skipping Transfer) Tax Return - 2008
Financial
Related Categories
Parent category: Financial