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• Amount in each account, • The power to surrender or cancel the joint tenant with right to survivorship or • Serial or account number, policy; as a tenant by the entirety. • Nature of account—checking, • The power to assign the policy or to Do not list on this schedule property savings, time deposit, etc., and revoke an assignment; that the decedent held as a tenant in • Unpaid interest accrued from date of • The power to pledge the policy for a common, but report the value of the last interest payment to the date of loan; interest on Schedule A if real estate, or death. • The power to obtain from the insurer on the appropriate schedule if personal a loan against the surrender value of Note. If you obtain statements from property. Similarly, community property the policy; and the financial organizations, keep them held by the decedent and spouse • A reversionary interest if the value of for IRS inspection. should be reported on the appropriate the reversionary interest was more than Schedules A through I. The decedent’s 5% of the value of the policy interest in a partnership should not be Schedule D—Insurance immediately before the decedent died. entered on this schedule unless the (An interest in an insurance policy is on the Decedent’s Life partnership interest itself is jointly considered a reversionary interest if, for owned. Solely owned partnership If you are required to file Form 706 and example, the proceeds become interests should be reported on there was any insurance on the payable to the insured’s estate or Schedule F, “Other Miscellaneous decedent’s life, whether or not included payable as the insured directs if the Property Not Reportable Under Any in the gross estate, you must complete beneficiary dies before the insured.) Other Schedule.” Schedule D and file it with the return. Life insurance not includible in the Insurance you must include on Part 1. Qualified joint interests held gross estate under section 2042 may Schedule D. Under section 2042, you by decedent and spouse. Under be includible under some other section must include in the gross estate: section 2040(b)(2), a joint interest is a of the Code. For example, a life • Insurance on the decedent’s life qualified joint interest if the decedent insurance policy could be transferred by receivable by or for the benefit of the and the surviving spouse held the the decedent in such a way that it estate; and interest as: would be includible in the gross estate • Insurance on the decedent’s life • Tenants by the entirety, or under section 2036, 2037, or 2038. See receivable by beneficiaries other than • Joint tenants with right of the instructions to Schedule G for a the estate, as described below. survivorship if the decedent and the description of these sections. decedent’s spouse are the only joint The term “insurance” refers to life tenants. insurance of every description, Completing the Schedule including death benefits paid by Interests that meet either of the two You must list every insurance policy on fraternal beneficiary societies operating requirements above should be entered the life of the decedent, whether or not under the lodge system, and death in Part 1. Joint interests that do not it is included in the gross estate. benefits paid under no-fault automobile meet either of the two requirements Under “Description,” list: insurance policies if the no-fault insurer above should be entered in Part 2. • The name of the insurance company, was unconditionally bound to pay the Under “Description,” describe the and benefit in the event of the insured’s property as required in the instructions • The number of the policy. death. for Schedules A, B, C, and F for the For every life insurance policy listed Insurance in favor of the estate. type of property involved. For example, on the schedule, you must request a Include on Schedule D the full amount jointly held stocks and bonds should be statement on Form 712, Life Insurance of the proceeds of insurance on the life described using the rules given in the Statement, from the company that of the decedent receivable by the instructions to Schedule B. issued the policy. Attach the Form 712 executor or otherwise payable to or for Under “Alternate value” and “Value to the back of Schedule D. the benefit of the estate. Insurance in at date of death,” enter the full value of If the policy proceeds are paid in one favor of the estate includes insurance the property. sum, enter the net proceeds received used to pay the estate tax, and any Note. You cannot claim the special (from Form 712, line 24) in the value other taxes, debts, or charges that are treatment under section 2040(b) for (and alternate value) columns of enforceable against the estate. The property held jointly by a decedent and Schedule D. If the policy proceeds are manner in which the policy is drawn is a surviving spouse who is not a U.S. not paid in one sum, enter the value of immaterial as long as there is an citizen. You must report these joint the proceeds as of the date of the obligation, legally binding on the interests on Part 2 of Schedule E, not decedent’s death (from Form 712, line beneficiary, to use the proceeds to pay Part 1. 25). taxes, debts, or charges. You must include the full amount even though the Part 2. All other joint interests. All If part or all of the policy proceeds premiums or other consideration may joint interests that were not entered in are not included in the gross estate, have been paid by a person other than Part 1 must be entered in Part 2. you must explain why they were not the decedent. included. For each item of property, enter the Insurance receivable by appropriate letter A, B, C, etc., from line beneficiaries other than the estate. Schedule E—Jointly 2a to indicate the name and address of Include on Schedule D the proceeds of the surviving co-tenant. Owned Property all insurance on the life of the decedent Under “Description,” describe the not receivable by, or for the benefit of, If you are required to file Form 706, you property as required in the instructions the decedent’s estate if the decedent must complete Schedule E and file it for Schedules A, B, C, and F for the possessed at death any of the following with the return if the decedent owned type of property involved. incidents of ownership, exercisable any joint property at the time of death, In the “Percentage includible” either alone or in conjunction with any whether or not the decedent’s interest column, enter the percentage of the person or entity. is includible in the gross estate. total value of the property that you Incidents of ownership in a policy Enter on this schedule all property of intend to include in the gross estate. include: whatever kind or character, whether • The right of the insured or estate to real estate, personal property, or bank Generally, you must include the full its economic benefits; accounts, in which the decedent held at value of the jointly owned property in • The power to change the beneficiary; the time of death an interest either as a the gross estate. However, the full -19- Part Instructions