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Contracts by the decedent to sell land. For contracts by the decedent to sell land, list: • Name of purchaser, • Contract date, • Property description, • Sale price, • Initial payment, • Amounts of installment payment, • Unpaid balance of principal, and • Interest rate. Cash in possession. For cash on hand, list such cash separately from bank deposits. Cash in financial organizations. For cash in banks, savings and loan associations, and other types of financial organizations, list: • Name and address of each financial organization; • Amount in each account; • Serial or account number; • Nature of account—checking, savings, time deposit, etc.; and • Unpaid interest accrued from date of last interest payment to the date of death. Note. If you obtain statements from the financial organizations, keep them for IRS inspection. Schedule D—Insurance on the Decedent's Life If any assets to which the special rule of Regulations section 20.2010-2(a)(7)(ii) applies are reported on this schedule, do not enter any value in the last three columns. See the instructions for line 10 of Part 5—Recapitulation for information on how to estimate and report the value of these assets. If you are required to file Form 706 and there was any insurance on the decedent's life, whether or not included in the gross estate, you must complete Schedule D and file it with the return. Insurance you must include on Schedule D. Under section 2042, you must include in the gross estate: • Insurance on the decedent's life receivable by or for the benefit of the estate; and • Insurance on the decedent's life receivable by beneficiaries other than the estate, as described below. The term “insurance” refers to life insurance of every description, including death benefits paid by fraternal beneficiary societies operating under the lodge system, and death benefits CAUTION ! paid under no-fault automobile insurance policies if the no-fault insurer was unconditionally bound to pay the benefit in the event of the insured's death. Insurance in favor of the estate. Include on Schedule D the full amount of the proceeds of insurance on the life of the decedent receivable by the executor or otherwise payable to or for the benefit of the estate. Insurance in favor of the estate includes insurance used to pay the estate tax, and any other taxes, debts, or charges that are enforceable against the estate. The manner in which the policy is drawn is immaterial as long as there is an obligation, legally binding on the beneficiary, to use the proceeds to pay taxes, debts, or charges. You must include the full amount even though the premiums or other consideration may have been paid by a person other than the decedent. Insurance receivable by beneficia- ries other than the estate. Include on Schedule D the proceeds of all insurance on the life of the decedent not receivable by, or for the benefit of, the decedent's estate if the decedent possessed at death any of the following incidents of ownership, exercisable either alone or in conjunction with any person or entity. Incidents of ownership in a policy include the following. • The right of the insured or estate to its economic benefits. • The power to change the beneficiary. • The power to surrender or cancel the policy. • The power to assign the policy or to revoke an assignment. • The power to pledge the policy for a loan. • The power to obtain from the insurer a loan against the surrender value of the policy. • A reversionary interest if the value of the reversionary interest was more than 5% of the value of the policy immediately before the decedent died. (An interest in an insurance policy is considered a reversionary interest if, for example, the proceeds become payable to the insured's estate or payable as the insured directs if the beneficiary dies before the insured.) Life insurance not includible in the gross estate under section 2042 may be includible under some other section of the Code. For example, a life insurance policy could be transferred by the decedent in such a way that it would be includible in the gross estate under section 2036, 2037, or 2038. See the instructions for Schedule G for a description of these sections. Completing the Schedule You must list every insurance policy on the life of the decedent, whether or not it is included in the gross estate. Under “Description,” list: • The name of the insurance company, and • The number of the policy. For every life insurance policy listed on the schedule, request a statement on Form 712 from the company that issued the policy. Attach the Form 712 to Schedule D. Note. If the insurance company that issued the policy will not provide Form 712, you should attach evidence that verifies the amount includible on Schedule D, including but not limited to an attachment, rider, assignment, copy of insurance proceeds check, and other relevant material. If the policy proceeds are paid in one sum, enter the net proceeds received (from Form 712, line 24) in the value (and alternate value) columns of Schedule D. If the policy proceeds are not paid in one sum, enter the value of the proceeds as of the date of the decedent's death (from Form 712, line 25). If part or all of the policy proceeds are not included in the gross estate, explain why they were not included. Schedule E—Jointly Owned Property If any assets to which the special rule of Regulations section 20.2010-2(a)(7)(ii) applies are reported on this schedule, do not enter any value in the last three columns. See the instructions for line 10 of Part 5—Recapitulation for information on how to estimate and report the value of these assets. If you are required to file Form 706, complete Schedule E and file it with the return if the decedent owned any joint property at the time of death, whether or not the decedent's interest is includible in the gross estate. Enter on this schedule all property of whatever kind or character, whether real estate, personal property, or bank accounts, in which the decedent held at the time of death an interest either as a joint tenant with right to survivorship or as a tenant by the entirety. CAUTION ! Instructions for Form 706 (Rev. 09-2021) -25-