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Example of effective discount: value should not be included if you can Note (for single premium or paid-up show that a part of the property policies). In certain situations, for a Pro-rata value of limited liability originally belonged to the other tenant example, where the surrender value of company (before any or tenants and was never received or the policy exceeds its replacement cost, discounts) $100.00 acquired by the other tenant or tenants the true economic value of the policy from the decedent for less than will be greater than the amount shown b Minus: 10% discounts for lack adequate and full consideration in on line 59 of Form 712. In these of control (10.00) money or money’s worth, or unless you situations, you should report the full c Marketable minority interest can show that any part of the property economic value of the policy on value (as if freely traded was acquired with consideration Schedule F. See Revenue Ruling minority interest value) $90.00 originally belonging to the surviving joint 78-137, 1978-1 C.B. 280 for details. tenant or tenants. In this case, you may • Section 2044 property (see Decedent d Minus: 15% discount for lack of exclude from the value of the property Who Was a Surviving Spouse below); marketability (13.50) an amount proportionate to the • Claims (including the value of the e Non-marketable minority consideration furnished by the other decedent’s interest in a claim for refund interest value $76.50 tenant or tenants. Relinquishing or of income taxes or the amount of the promising to relinquish dower, curtesy, refund actually received); or statutory estate created instead of • Rights; Calculation of effective discount: dower or curtesy, or other marital rights • Royalties; (a minus e) divided by a = effective in the decedent’s property or estate is • Leaseholds; discount not consideration in money or money’s • Judgments; worth. See the Schedule A instructions • Reversionary or remainder interests; ($100.00 - $76.50) ÷ $100.00 = 23.50% for the value to show for real property • Shares in trust funds (attach a copy that is subject to a mortgage. of the trust instrument); Note. The amount of discounts are • Household goods and personal If the property was acquired by the based on the factors pertaining to a effects, including wearing apparel; decedent and another person or specific interest and those discounts • Farm products and growing crops; persons by gift, bequest, devise, or shown in the example are for • Livestock; inheritance as joint tenants, and their demonstration purposes only. • Farm machinery; and interests are not otherwise specified by • Automobiles. If you answered “Yes” to line 10b for law, include only that part of the value any transfer(s) described in (1) through Interests. If the decedent owned any of the property that is figured by (5) in the Schedule G instructions (and interest in a partnership or dividing the full value of the property by made by the decedent), attach a unincorporated business, attach a the number of joint tenants. statement to Schedule G which lists statement of assets and liabilities for the item number from that schedule If you believe that less than the full the valuation date and for the 5 years and identifies the total accumulated value of the entire property is includible before the valuation date. Also, attach discount taken (that is, XX.XX%) on in the gross estate for tax purposes, statements of the net earnings for the such transfer(s). you must establish the right to include same 5 years. Be sure to include the Line 1. If the decedent owned at the the smaller value by attaching proof of EIN of the entity. You must account for date of death works of art or items with the extent, origin, and nature of the goodwill in the valuation. In general, collectible value (for example, jewelry, decedent’s interest and the interest(s) furnish the same information and follow furs, silverware, books, statuary, vases, of the decedent’s co-tenant or the methods used to value close oriental rugs, coin or stamp collections), co-tenants. corporations. See the instructions for check the “Yes” box on line 1 and Schedule B. In the “Includible alternate value” provide full details. If any item or All partnership interests should be and “Includible value at date of death” collection of similar items is valued at reported on Schedule F unless the columns, you should enter only the more than $3,000, attach an appraisal partnership interest, itself, is jointly values that you believe are includible in by an expert under oath and the owned. Jointly owned partnership the gross estate. required statement regarding the interests should be reported on appraiser’s qualifications (see Schedule E. Regulations section 20.2031-6(b)). Schedule F—Other If real estate is owned by the sole proprietorship, it should be reported on Miscellaneous Property Decedent Who Was a Schedule F and not on Schedule A. Describe the real estate with the same Surviving Spouse You must complete Schedule detail required for Schedule A. If the decedent was a surviving spouse, F and file it with the return. Valuation discounts. If you he or she may have received qualified On Schedule F, list all items that must answered “Yes” to Part 4—General terminable interest property (QTIP) be included in the gross estate that are Information, line 10b for any interest in from the predeceased spouse for which not reported on any other schedule, miscellaneous property not reportable the marital deduction was elected either including: under any other schedule owned by the on the predeceased spouse’s estate • Debts due the decedent (other than decedent at the time of death, attach a tax return or on a gift tax return, Form notes and mortgages included on statement that lists the item number 709. The election was available for gifts Schedule C); from Schedule F and identifies the total made and decedents dying after • Interests in business; accumulated discount taken (that is, December 31, 1981. List such property XX.XX%) on such interest. on Schedule F. • Any interest in an Archer medical savings account (MSA) or health If you answered “Yes” to line 10b for If this election was made and the savings account (HSA), unless such an interest in a limited liability company surviving spouse retained his or her interest passes to the surviving spouse; owned by the decedent at the time of interest in the QTIP property at death, and death, attach a statement that lists the the full value of the QTIP property is • Insurance on the life of another item number from Schedule F and includible in his or her estate, even (obtain and attach Form 712, for each identifies the effective discount taken though the qualifying income interest policy). on such interest. terminated at death. It is valued as of -20- Part Instructions