Instructions For Form 706 - 2016 Page 16
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54Line 5
installment that is subject to the 2% rate
Note. If you intend for the
is the same as the percentage of total
representative to represent the estate
Name. Enter the name of each
tax payable in installments that is
before the IRS, he or she must complete
individual, trust, or estate that received
subject to the 2% rate.
and sign this authorization.
(or will receive) benefits of $5,000 or
The interest paid on installment
Complete and attach Form 2848 if
more from the estate directly as an heir,
payments is not deductible as
you would like to authorize:
!
next-of-kin, devisee, or legatee; or
an administrative expense of
Persons other than attorneys,
indirectly (for example, as beneficiary of
CAUTION
the estate.
accountants, or enrolled agents to
an annuity or insurance policy,
represent the estate, or
shareholder of a corporation, or partner
Making the election. If you check this
More than one person to receive
of a partnership that is an heir, etc.).
line to make a final election, you must
confidential information or represent the
Identifying number. Enter the SSN of
attach the notice of election described in
estate, or
each individual beneficiary listed. If the
Regulations section 20.6166-1(b). If you
Someone to sign agreements,
number is unknown, or the individual
check this line to make a protective
consents, waivers or other documents
has no number, please indicate
election, you must attach a notice of
for the estate.
“unknown” or “none.” For trusts and
protective election as described in
Filing a completed Form 2848 with this
other estates, enter the Employer
Regulations section 20.6166-1(d).
return may expedite processing of the
Identification Number (EIN).
Regulations section 20.6166-1(b)
Form 706.
requires that the notice of election is
Relationship. For each individual
If you wish only to authorize
made by attaching to a timely filed
beneficiary, enter the relationship (if
someone to inspect and/or receive
estate tax return the following
known) to the decedent by reason of
confidential tax information (but not to
information:
blood, marriage, or adoption. For trust
represent you before the IRS), complete
The decedent's name and taxpayer
or estate beneficiaries, indicate
and file Form 8821.
identification number as they appear on
“TRUST” or “ESTATE.”
the estate tax return;
Line 3
Amount. Enter the amount actually
The amount of tax that is to be paid in
Enter the marital status of the decedent
distributed (or to be distributed) to each
installments;
at the time of death by checking the
beneficiary including transfers during
The date selected for payment of the
appropriate box on line 3a. If the
the decedent's life from Schedule G
first installment;
decedent was married at the time of
required to be included in the gross
The number of annual installments,
death, complete line 4. If the decedent
estate. The value to be entered need
including first installment, in which the
had one or more prior marriages,
not be exact. A reasonable estimate is
tax is to be paid;
complete line 3b by providing the name
sufficient. For example, where precise
The properties shown on the estate
and SSN of each former spouse, the
values cannot readily be determined, as
tax return that are the closely-held
date(s) the marriage ended, and specify
with certain future interests, a
business interest (identified by schedule
whether the marriage ended by
reasonable approximation should be
and item number); and
annulment, divorce decree, or death of
entered. The total of these distributions
The facts that formed the basis for the
spouse. If the prior marriage ended in
should approximate the amount of gross
executor's conclusion that the estate
death and the predeceased spouse
estate reduced by funeral and
qualifies for payment of the estate tax in
died after December 31, 2010,
administrative expenses, debts and
installments.
complete Part 6 — Portability of
mortgages, bequests to surviving
You may also elect to pay certain
Deceased Spousal Unused Exclusion,
spouse, charitable bequests, and any
GST taxes in installments. See section
Section D if the estate of the
federal and state estate and GST taxes
6166(i).
predeceased spouse elected to allow
paid (or payable) relating to the benefits
the decedent to use any unused
Line 4. Reversionary or
received by the beneficiaries listed on
exclusion amount. For more
lines 4 and 5.
Remainder Interests
information, see section 2010(c)(4) and
All distributions of less than $5,000 to
For details of this election, see section
related regulations.
specific beneficiaries may be included
6163 and the related regulations.
Line 4
with distributions to unascertainable
beneficiaries on the line provided.
Complete line 4 whether or not there is a
Part 4—General
Line 6. Protective Claim for
surviving spouse and whether or not the
Information
surviving spouse received any benefits
Refund
from the estate. If there was no surviving
Authorization
If you answered “Yes,” complete
spouse on the date of decedent's death,
Schedule PC for each claim. Two
Completing the authorization will
enter “None” in line 4a and leave lines
copies of each Schedule PC must be
authorize one attorney, accountant, or
4b and 4c blank. The value entered in
filed with the return.
enrolled agent to represent the estate
line 4c need not be exact. See the
and receive confidential tax information,
instructions for “Amount” under line 5
A protective claim for refund may be
but will not authorize the representative
later.
filed when there is an unresolved claim
to enter into closing agreements for the
or expense that will not be deductible
estate. If you would like to authorize
Note. Do not include any DSUE
under section 2053 before the
your representative to enter into
amount transferred to the surviving
expiration of the period of limitation
agreements or perform other
spouse in the total entered on line 4c.
under section 6511(a). To preserve the
designated acts on behalf of the estate,
estate's right to a refund once the claim
you must file Form 2848 with Form 706.
or expense has been finally determined,
the protective claim must be filed before
-16-
Part Instructions
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