Instructions For Form It-1 - Inheritance Tax - 2011 (Page 14 of 19) in pdf

Part 4: General information

Section 2044 property is property for which a previous

Section 2056(b)(7) election (Qualified Terminable Interest

Property, or QTIP election) has been made, or for which

Line 2. Surviving spouse/Oregon registered do-

a similar gift tax election (Section 2523) has been made.

mestic partner

For more information, see the instructions on the back of

Complete line 2 whether or not there is a surviving spouse

Schedule F.

or registered domestic partner and whether or not the sur-

viving spouse or registered domestic partner received any

Line 6. Insurance not included in the gross estate

benefits from the estate. If there was no surviving spouse or

If you checked “Yes” for either 6a or 6b, you must complete

registered domestic partner on the date of decedent’s death,

and attach both Schedule D and Form 712, Life Insurance

enter “None” in line 2a and leave lines 2b and 2c blank. The

Statement, for each policy and an explanation of why the

value entered in line 2c does not need to be exact. See the

policy or its proceeds are not includible in the gross estate.

instructions for “Amount” under line 3.

Line 8. Partnership interests and stock in close

Line 3. Beneficiaries information

corporations

Name

If you answered “Yes” to line 8, you must include full details

On line 3a enter the name of each individual, trust, or estate

for partnerships and unincorporated businesses on Schedule

who received (or will receive) benefits of $5,000 or more from

F (Schedule E if the partnership interest is jointly owned).

the estate directly as an heir, next-of-kin, devisee, or legatee;

You must include full details for the stock of inactive or close

or indirectly (for example, as beneficiary of an annuity or

corporations on Schedule B.

insurance policy, shareholder of a corporation, or partner of

Value these interests using the federal Regulations Section

a partnership that is an heir, etc.).

20.2031-2 (stocks) or 20.2031-3 (other business interests).

Identifying number

A “close corporation” is a corporation whose shares are

Enter the SSN of each individual beneficiary listed. If the

owned by a limited number of shareholders. Often, one

number is unknown, or the individual has no number,

family holds the entire stock issue. As a result, little, if any,

please indicate “unknown” or “none.” For trusts and other

trading of the stock takes place. There is, therefore, no estab-

estates, enter the federal employer identification number

lished market for the stock, and those sales that do occur

(FEIN).

are at irregular intervals and seldom reflect all the elements

Relationship

of a representative transaction as defined by the term “fair

market value” (FMV).

For each individual beneficiary, enter the relationship (if

known) to the decedent by reason of blood, marriage, or

Line 10. Trusts

adoption. For trust or estate beneficiaries, indicate TRUST

or ESTATE.

If you answered “Yes” to either 10a or 10b, you must attach

a copy of the trust instrument for each trust. You must com-

Amount

plete Schedule G if you answered “Yes” to 10a and Schedule

Enter the amount actually distributed (or to be distributed)

F if you answered “Yes” to 10b.

to each beneficiary including transfers during the decedent’s

Line 12. Transitional marital deduction

life from Schedule G required to be included in the gross

computation

estate. The value to be entered does not need to be exact. A

reasonable estimate is sufficient. For example, where precise

Check “Yes” if property passes to the surviving spouse

values cannot readily be determined, as with certain future

or registered domestic partner under a maximum marital

interests, a reasonable approximation should be entered.

deduction formula provision that meets the requirements of

The total of these distributions should approximate the

Section 403(e)(3) of the Economic Recovery Tax Act of 1981

amount of gross estate reduced by funeral and administra-

(P.L. 97-34; 95 Stat. 305).

tive expenses, debts and mortgages, bequests to surviving

If you check “Yes” to line 12, compute the marital deduc-

spouse, charitable bequests, and any federal estate and state

tion under the rules that were in effect before the Economic

inheritance taxes paid (or payable) relating to the benefits

Recovery Tax Act of 1981.

received by the beneficiaries listed on lines 2 and 3.

For a format for this computation, you should obtain the

All distributions of less than $5,000 to specific beneficiaries

November 1981 revision of Form 706 and its instructions.

may be included with distributions to unascertainable ben-

The computation is lines 19 through 26 of the Recapitula-

eficiaries on line 3b.

tion. You should also apply the rules of Revenue Ruling

Line 4. Section 2044 property

80-148, 1980-1 C.B. 207, if there is property that passes to the

surviving spouse outside of the maximum marital deduction

If you answered “Yes,” these assets must be shown on

Schedule F.

formula provision.

150-103-001 (Rev. 08-11)

Instructions For Form It-1 - Inheritance Tax - 2011 Page 14

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