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however, considered to be a person Does the notice of election include Does the notice of election include, with an interest in property under the FMV of the real property to be for each item of specially valued section 2032A solely by reason of that specially valued and also include its property, the name of every person right. Likewise, creditors of an estate value based on the qualified use taking an interest in that item of are not such persons solely by reason (determined without the adjustments specially valued property and the of their status as creditors. provided in section 2032A(b)(3)(B))? following information about each such person: (a) the person’s If any person required to enter into Does the notice of election include address, (b) the person’s taxpayer the agreement either desires that an the adjusted value (as defined in identification number, (c) the agent act for him or her or cannot section 2032A(b)(3)(B)) of (a) all person’s relationship to the legally bind himself or herself due to real property that both passes from decedent, and (d) the value of the infancy or other incompetency, or due the decedent and is used in a property interest passing to that to death before the election under section 2032A is timely exercised, a qualified use, without regard to person based on both FMV and representative authorized by local law whether it is to be specially valued, qualified use? to bind the person in an agreement of and (b) all real property to be this nature may sign the agreement on specially valued? Does the notice of election include his or her behalf. affidavits describing the activities Does the notice of election include constituting material participation The IRS will contact the agent (a) the items of personal property and the identity of the material designated in the agreement on all shown on the estate tax return that participants? matters relating to continued pass from the decedent to a qualification under section 2032A of the qualified heir and that are used in Does the notice of election include a specially valued real property and on all qualified use and (b) the total value legal description of each item of matters relating to the special lien of such personal property adjusted specially valued property? arising under section 6324B. It is the under section 2032A(b)(3)(B)? duty of the agent as attorney-in-fact for (In the case of an election made for the parties with interests in the specially qualified woodlands, the information valued property to furnish the IRS with Does the notice of election include included in the notice of election must any requested information and to notify the adjusted value of the gross include the reason for entitlement to the the IRS of any disposition or cessation estate? (See section Woodlands election.) of qualified use of any part of the 2032A(b)(3)(A).) property. Does the notice of election include Any election made under section 2032A Checklist for Section 2032A the method used to determine the will not be valid unless a properly Election special-use value? executed agreement (Schedule A-1, Part 3) is filed with the estate tax return. If you are going to make the Does the notice of election include To ensure that the agreement satisfies special-use valuation election copies of written appraisals of the the requirements for a valid election, on Schedule A-1, please use use the following checklist: FMV of the real property? CAUTION ! this checklist to ensure that you are providing everything necessary to make Does the notice of election include a Has the agreement been signed a valid election. statement that the decedent and/or by each qualified heir having an a member of his or her family has To have a valid special-use valuation interest in the property being owned all of the specially valued election under section 2032A, you must specially valued? property for at least 5 years of the 8 file, in addition to the federal estate tax years immediately preceding the return, (a) a notice of election Has every qualified heir expressed date of the decedent’s death? (Schedule A-1, Part 2), and (b) a fully consent to personal liability under executed agreement (Schedule A-1, section 2032A(c) in the event of Part 3). You must include certain Does the notice of election include a an early disposition or early information in the notice of election. To statement as to whether there were cessation of qualified use? ensure that the notice of election any periods during the 8-year period includes all of the information required preceding the decedent’s date of Is the agreement that is actually for a valid election, use the following death during which the decedent or signed by the qualified heirs in a checklist. The checklist is for your use a member of his or her family did only. Do not file it with the return. form that is binding on all of the not (a) own the property to be qualified heirs having an interest specially valued, (b) use it in a Does the notice of election include in the specially valued property? qualified use, or (c) materially the decedent’s name and social participate in the operation of the security number as they appear on Does the agreement designate an farm or other business? (See the estate tax return? agent to act for the parties to the section 2032A(e)(6).) agreement in all dealings with the Does the notice of election include IRS on matters arising under the relevant qualified use of the section 2032A? property to be specially valued? Has the agreement been signed Does the notice of election describe by the designated agent and does the items of real property shown on it give the address of the agent? the estate tax return that are to be specially valued and identify the property by the Form 706 schedule and item number? -16- Part Instructions