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represent you before the IRS), not making the election under section Line 8. Insurance Not complete and file Form 8821. 2010(c)(5); or, Included in the Gross Estate • Enter “No Election under Section If you answered “Yes” to either 8a or 2010(c)(5)” across the top of the first Line 3 8b, for each policy you must complete page of Form 706. Enter the marital status of the decedent and attach Schedule D, Form 712, and Alternatively, if the filing of a Form 706 at the time of death by checking the an explanation of why the policy or its is not otherwise required for the appropriate box and providing the proceeds are not includible in the gross decedent’s estate, not filing a timely requested information. If the decedent estate. and complete Form 706 will effectively had more than one marriage in his or prohibit the surviving spouse’s use of her lifetime, on the Explanation line Line 10. Partnership the decedent’s unused exemption. provide the name and SSN of each Interests and Stock in Close former spouse, the date(s) the marriage Line 5 ended, and specify whether the Corporations marriage ended by annulment, divorce Name. Enter the name of each If you answered “Yes” on line 10a, you decree, or death of spouse (to the individual, trust, or estate that received must include full details for partnerships extent the information was not already (or will receive) benefits of $5,000 or (including family limited partnerships), provided above). Also, if the prior more from the estate directly as an heir, unincorporated businesses, and limited marriage ended in death and the next-of-kin, devisee, or legatee; or liability companies on Schedule F predeceased spouse died after indirectly (for example, as beneficiary of (Schedule E if the partnership interest December 31, 2010, indicate on the an annuity or insurance policy, is jointly owned). You must also include Explanation line whether the executor shareholder of a corporation, or partner full details for fractional interests in real of the estate of the predeceased of a partnership that is an heir, etc.). estate on Schedule A, and full details spouse elected to allow the decedent to for stock of inactive or close Identifying number. Enter the SSN of use the deceased spouse’s unused corporations on Schedule B. each individual beneficiary listed. If the exclusion amount. If the executor of the number is unknown, or the individual Value these interests using the rules predeceased spouse’s estate made the has no number, please indicate of Regulations section 20.2031-2 election, attach to the return the “unknown” or “none.” For trusts and (stocks) or 20.2031-3 (other business predeceased spouse’s Form 706 and a other estates, enter the EIN. interests). calculation of the deceased spousal Relationship. For each individual unused exclusion amount (DSUE A close corporation is a corporation beneficiary, enter the relationship (if amount). For more information, see whose shares are owned by a limited known) to the decedent by reason of section 2010(c)(4). number of shareholders. Often, one blood, marriage, or adoption. For trust family holds the entire stock issue. As a For estates of decedents dying in or estate beneficiaries, indicate result, little, if any, trading of the stock 2011, the DSUE amount equals the “TRUST” or “ESTATE.” takes place. There is, therefore, no lesser of: established market for the stock, and Amount. Enter the amount actually 1. The basic exclusion amount of those sales that do occur are at distributed (or to be distributed) to each $5,000,000, or irregular intervals and seldom reflect all beneficiary including transfers during 2. The basic exclusion amount of the elements of a representative the decedent’s life from Schedule G $5,000,000, MINUS the amount in line transaction as defined by FMV. required to be included in the gross 5, Part 2—Tax Computation, of the last estate. The value to be entered need predeceased spouse’s Form 706 (but Line 12. Trusts not be exact. A reasonable estimate is not below zero). If you answered “Yes” on either line sufficient. For example, where precise 12a or line 12b, you must attach a copy values cannot readily be determined, as Note. The election to use the DSUE of the trust instrument for each trust. with certain future interests, a amount applies to the most recent reasonable approximation should be You must complete Schedule G if predeceased spouse of the decedent. entered. The total of these distributions you answered “Yes” on line 12a and should approximate the amount of Schedule F if you answered “Yes” on Line 4 gross estate reduced by funeral and line 12b. Complete line 4 whether or not there is administrative expenses, debts and a surviving spouse and whether or not mortgages, bequests to surviving Line 14. Foreign Accounts the surviving spouse received any spouse, charitable bequests, and any Check “Yes” on line 14 if the decedent benefits from the estate. If there was no federal and state estate and GST taxes at the time of death had an interest in surviving spouse on the date of paid (or payable) relating to the benefits or signature or other authority over a decedent’s death, enter “None” in line received by the beneficiaries listed on financial account in a foreign country, 4a and leave lines 4b and 4c blank. lines 4 and 5. such as a bank account, securities The value entered in line 4c need not All distributions of less than $5,000 account, an offshore trust, or other be exact. See the instructions for to specific beneficiaries may be financial account. “Amount” under line 5 below. included with distributions to Note. The executor is considered to unascertainable beneficiaries on the have elected to allow the surviving line provided. Part 5—Recapitulation spouse to use the decedent’s unused Line 6. Section 2044 Property exclusion amount by filing a timely and Gross Estate complete Form 706. If you answered “Yes,” these assets Items 1 through 10. You must make must be shown on Schedule F. Note. If the estate chooses not to an entry in each of items 1 through 9. allow the surviving spouse to take into Section 2044 property is property for account, for estate and gift tax which a previous section 2056(b)(7) If the gross estate does not contain purposes, the decedent’s unused election (QTIP election) has been any assets of the type specified by a exclusion amount, then do one of the made, or for which a similar gift tax given item, enter zero for that item. following: election (section 2523) has been made. Entering zero for any of items 1 through • Attach a statement to the Form 706 For more information, see the 9 is a statement by the executor, made indicating that the decedent’s estate is instructions for Schedule F, below. under penalties of perjury, that the -13- Part Instructions