Instructions For Form 706 - 2016 Page 17

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Line 15. Foreign Accounts
the end of the limitations period. For
amount (see section 6018(a)) and Form
more information on how to file a
706 is being filed only to elect portability
Check “Yes,” on line 15 if the decedent
protective claim for refund with this
of the DSUE amount, the estate is not
at the time of death had an interest in or
Form 706, see the instructions for
required to report the value of certain
signature or other authority over a
Schedule PC, later.
property eligible for the marital or
financial account in a foreign country,
charitable deduction. For this property
Line 7. Section 2044 Property
such as a bank account, securities
being reported on Schedules A, B, C, D,
account, an offshore trust, or other
If you answered “Yes,” these assets
E, F, G, H, and I, the executor must
financial account.
must be shown on Schedule F.
calculate his or her best estimate of the
value. Do not include the estimated
Section 2044 property is property for
Part 5—Recapitulation
value on the line corresponding to the
which a previous section 2056(b)(7)
schedule on which the property was
Gross Estate—Items 1 through
election (QTIP election) has been made,
reported. Instead, total the estimated
or for which a similar gift tax election
11
value of the assets subject to the
(section 2523) has been made. For
special rule and enter on line 10 the
Items 1 through 9. You must make an
more information, see the instructions
amount from the Table of Estimated
entry in each of items 1 through 9.
for Schedule F, later.
Values, later, that corresponds to that
If the gross estate does not contain
total.
Line 9. Insurance Not Included
any assets of the type specified by a
in the Gross Estate
given item, enter zero for that item.
Note. The special rule does not apply if
If you answered “Yes,” to either line 9a
Entering zero for any of items 1 through
the valuation of the asset is needed to
or 9b, for each policy you must
9 is a statement by the executor, made
determine the estate's eligibility for the
complete and attach Schedule D, Form
under penalties of perjury, that the gross
provisions of sections 2032, 2032A,
712, and an explanation of why the
estate does not contain any includible
2652(a)(3), 6166, or any other provision
policy or its proceeds are not includible
assets covered by that item.
of the Code or Regulations.
in the gross estate.
Do not enter any amounts in the
Note. As applies to all other values
“Alternate value” column unless you
Line 11. Partnership Interests
reported on Form 706, estimates of the
elected alternate valuation on line 1 of
and Stock in Close
value of property subject to the special
Part 3—Elections by the Executor.
Corporations
rule of Regulations section 20.2010-2(a)
(7)(ii) must result from the executor’s
Note. If estimating the value of one or
If you answered “Yes,” on line 11a, you
exercise of due diligence and are
more assets pursuant to the special rule
must include full details for partnerships
subject to penalties of perjury.
of Regulations section 20.2010-2(a)(7)
(including family limited partnerships),
(ii), do not enter values for those assets
unincorporated businesses, and limited
Exclusion — Item 12
in items 1 through 9. Total the estimated
liability companies on Schedule F
Item 12. Conservation easement ex-
values for those assets and follow the
(Schedule E if the partnership interest is
clusion. Complete and attach
instructions for item 10.
jointly owned). Also include full details
Schedule U (along with any required
for fractional interests in real estate on
Which schedules to attach for items
attachments) to claim the exclusion on
Schedule A and for stock of inactive or
1 through 9. You must attach:
this line.
close corporations on Schedule B.
Schedule F. Answer its questions
Deductions — Items 14 through
even if you report no assets on it;
Value these interests using the rules
Schedules A, B, and C, if the gross
23
of Regulations section 20.2031-2
estate includes any (1) Real Estate, (2)
(stocks) or 20.2031-3 (other business
Items 14 through 22. Attach the
Stocks and Bonds, or (3) Mortgages,
interests).
appropriate schedules for the
Notes, and Cash, respectively;
deductions claimed.
Schedule D, if the gross estate
A close corporation is a corporation
includes any life insurance or if you
Item 18. If item 17 is less than or equal
whose shares are owned by a limited
answered “Yes,” to question 9a of Part
to the value (at the time of the
number of shareholders. Often, one
4—General Information;
decedent's death) of the property
family holds the entire stock issue. As a
Schedule E, if the gross estate
subject to claims, enter the amount from
result, little, if any, trading of the stock
contains any jointly-owned property or if
item 17 on item 18.
takes place. There is, therefore, no
you answered “Yes,” to question 10 of
established market for the stock, and
If the amount on item 17 is more than
Part 4;
those sales that do occur are at irregular
the value of the property subject to
Schedule G, if the decedent made
intervals and seldom reflect all the
claims, enter the greater of:
any of the lifetime transfers to be listed
elements of a representative transaction
The value of the property subject to
on that schedule or if you answered
as defined by FMV.
claims or
“Yes,” to question 12 or 13a of Part 4;
The amount actually paid at the time
Line 13. Trusts
Schedule H, if you answered “Yes,” to
the return is filed.
question 14 of Part 4; and
If you answered “Yes,” on either line 13a
In no event should you enter more on
Schedule I, if you answered “Yes,” to
or line 13b, attach a copy of the trust
item 18 than the amount on item 17.
question 16 of Part 4.
instrument for each trust.
See section 2053 and the related
Item 10. Under Regulations section
regulations for more information.
Complete Schedule G if you
20.2010-2(a)(7)(ii), if the total value of
answered “Yes,” on line 13a and
Item 23. Under Regulations section
the gross estate and adjusted taxable
Schedule F if you answered “Yes,” on
20.2010-2(a)(7)(ii), if the total value of
gifts is less than the basic exclusion
line 13b.
the gross estate and adjusted taxable
Part Instructions
-17-

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