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animals, and no substantial activity is If you are deducting the value of the Schedule P—Credit for undertaken to carry on propaganda or residue or a part of the residue passing Foreign Death Taxes otherwise attempt to influence to charity under the decedent’s will, legislation, or participate in any political attach a copy of the computation campaign on behalf of any candidate showing how you determined the value, General for public office; including any reduction for the taxes If you claim a credit on line 13 of Part • Any veterans organization described above. 2—Tax Computation, you must incorporated by an Act of Congress or complete Schedule P and file it with the Also include: any of its departments, local chapters, return. You must attach Form(s) or posts, for which none of the net • A statement that shows the values of 706-CE to support any credit you claim. earnings benefits any private individual; all specific and general legacies or If the foreign government refuses to or devises for both charitable and certify Form 706-CE, you must file it • A foreign government or its political noncharitable uses. For each legacy or directly with the IRS as instructed on subdivision when the use of such devise, indicate the paragraph or the Form 706-CE. See Form 706-CE property is limited exclusively to section of the decedent’s will or codicil for instructions on how to complete the charitable purposes. that applies. If legacies are made to form and for a description of the items each member of a class (for example, For this purpose, certain Indian tribal that must be attached to the form when $1,000 to each of the decedent’s governments are treated as states and the foreign government refuses to employees), show only the number of transfers to them qualify as deductible certify it. each class and the total value of charitable contributions. See Revenue The credit for foreign death taxes is property they received; Procedure 2008-55, on page 768 of allowable only if the decedent was a 2008-39 I.R.B., www.irs.gov/pub/ • The date of birth of all life tenants or citizen or resident of the United States. irs-irbs/irb08-39.pdf, as modified and annuitants, the length of whose lives However, see section 2053(d) and the supplemented by subsequent revenue may affect the value of the interest related regulations for exceptions and procedures, for a list of qualifying passing to charity under the decedent’s limitations if the executor has elected, Indian tribal governments. will; in certain cases, to deduct these taxes You may also claim a charitable • A statement showing the value of all from the value of the gross estate. For contribution deduction for a qualifying property that is included in the a resident, not a citizen, who was a conservation easement granted after decedent’s gross estate but does not citizen or subject of a foreign country the decedent’s death under the pass under the will, such as transfers, for which the President has issued a provisions of section 2031(c)(9). jointly owned property that passed to proclamation under section 2014(h), the the survivor on decedent’s death, and The charitable deduction is allowed credit is allowable only if the country of insurance payable to specific for amounts that are transferred to which the decedent was a national beneficiaries; and charitable organizations as a result of allows a similar credit to decedents who • Any other important information such either a qualified disclaimer (see Line 2. were U.S. citizens residing in that as that relating to any claim, not arising Qualified Disclaimer below) or the country. under the will, to any part of the estate complete termination of a power to The credit is authorized either by (that is, a spouse claiming dower or consume, invade, or appropriate statute or by treaty. If a credit is curtesy, or similar rights). property for the benefit of an individual. authorized by a treaty, whichever of the It does not matter whether termination following is the most beneficial to the occurs because of the death of the Line 2. Qualified Disclaimer estate is allowed: individual or in any other way. The The charitable deduction is allowed for • The credit figured under the treaty; termination must occur within the period amounts that are transferred to • The credit figured under the statute; of time (including extensions) for filing charitable organizations as a result of a or the decedent’s estate tax return and qualified disclaimer. To be a qualified • The credit figured under the treaty, before the power has been exercised. disclaimer, a refusal to accept an plus the credit figured under the statute The deduction is limited to the interest in property must meet the for death taxes paid to each political amount actually available for charitable conditions of section 2518. These are subdivision or possession of the treaty uses. Therefore, if under the terms of a explained in Regulations sections country that are not directly or indirectly will or the provisions of local law, or for 25.2518-1 through 25.2518-3. If creditable under the treaty. any other reason, the federal estate property passes to a charitable Under the statute, the credit is tax, the federal GST tax, or any other beneficiary as the result of a qualified authorized for all death taxes (national estate, GST, succession, legacy, or disclaimer, check the “Yes” box on line and local) imposed in the foreign inheritance tax is payable in whole or in 2 and attach a copy of the written country. Whether local taxes are the part out of any bequest, legacy, or disclaimer required by section 2518(b). basis for a credit under a treaty devise that would otherwise be allowed depends upon the provisions of the as a charitable deduction, the amount Attachments particular treaty. you may deduct is the amount of the If the charitable transfer was made by bequest, legacy, or devise reduced by If a credit for death taxes paid in will, attach a certified copy of the order the total amount of the taxes. more than one foreign country is admitting the will to probate, in addition allowable, a separate computation of If you elected to make installment to the copy of the will. If the charitable the credit must be made for each payments of the estate tax, and the transfer was made by any other written foreign country. The copies of Schedule interest is payable out of property instrument, attach a copy. If the P on which the additional computations transferred to charity, you must reduce instrument is of record, the copy should are made should be attached to the the charitable deduction by an estimate be certified; if not, the copy should be copy of Schedule P provided in the of the maximum amount of interest that verified. return. will be paid on the deferred tax. For split-interest trusts (or pooled The total credit allowable for any Value income funds), enter in the “Amount” property, whether subjected to tax by The valuation dates used in column the amount treated as passing one or more than one foreign country, determining the value of the gross to the charity. Do not enter the entire is limited to the amount of the federal estate apply also on Schedule O. amount that passes to the trust (fund). estate tax attributable to the property. -31- Part Instructions