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general, the annuity is receivable by the executor if it is to be paid to the executor or if there is an agreement (expressed or implied) that it will be applied by the beneficiary for the benefit of the estate (such as in discharge of the estate's liability for death taxes or debts of the decedent, etc.) or that its distribution will be governed to any extent by the terms of the decedent's will or the laws of descent and distribution. If data available to you does not indicate whether the plan satisfies the requirements of section 401(a), 403(a), 408(a), 408(b), or 409(a), you may obtain that information from the IRS office where the employer's principal place of business is located. Line A. Lump-Sum Distribution Election Note. The following rules have been repealed and apply only if the decedent: • On December 31, 1984, was both a participant in the plan and in pay status (for example, had received at least one benefit payment on or before December 31, 1984) and had irrevocably elected the form of the benefit before July 18, 1984; or • Had separated from service before January 1, 1985, and did not change the form of benefit before death. Generally, the entire amount of any lump-sum distribution is included in the decedent's gross estate. However, under this special rule, all or part of a lump-sum distribution from a qualified (approved) plan will be excluded if the lump-sum distribution is included in the recipient's income for income tax purposes. If the decedent was born before 1936, the recipient may be eligible to elect special “10-year averaging” rules (under repealed section 402(e)) and capital gain treatment (under repealed section 402(a)(2)) in figuring the income tax on the distribution. For more information, see Pub. 575, Pension and Annuity Income. If this option is available, the estate tax exclusion cannot be claimed unless the recipient elects to forego the “10-year averaging” and capital gain treatment in figuring the income tax on the distribution. The recipient elects to forego this treatment by treating the distribution as taxable on his or her income tax return as described in Regulations section 20.2039-4(d). The election is irrevocable. The amount excluded from the gross estate is the portion attributable to the employer contributions. The portion, if any, attributable to the employee-decedent's contributions is always includible. Also, you may not figure the gross estate in accordance with this election unless you check “Yes” on line A and attach the names, addresses, and identifying numbers of the recipients of the lump-sum distributions. See Regulations section 20.2039-4(d)(2). How To Complete Schedule I In describing an annuity, give the name and address of the grantor of the annuity. Specify if the annuity is under an approved plan. IF . . . THEN . . . the annuity is under an approved plan state the ratio of the decedent's contribution to the total purchase price of the annuity. the decedent was employed at the time of death and an annuity as described earlier in Definitions, Annuity, Example 4 became payable to any beneficiary because the beneficiary survived the decedent state the ratio of the decedent's contribution to the total purchase price of the annuity. an annuity under an individual retirement account or annuity became payable to any beneficiary because that beneficiary survived the decedent and is payable to the beneficiary for life or for at least 36 months following the decedent's death state the ratio of the amount paid for the individual retirement account or annuity that was not allowable as an income tax deduction under section 219 (other than a rollover contribution) to the total amount paid for the account or annuity. the annuity is payable out of a trust or other fund the description should be sufficiently complete to fully identify it. the annuity is payable for a term of years include the duration of the term and the date on which it began. IF . . . THEN . . . the annuity is payable for the life of a person other than the decedent include the date of birth of that person. the annuity is wholly or partially excluded from the gross estate enter the amount excluded under “Description” and explain how you figured the exclusion. Schedule J—Funeral Expenses and Expenses Incurred in Administering Property Subject to Claims Use Schedule PC to make a protective claim for refund for expenses which are not currently deductible under section 2053. For such a claim, report the expense on Schedule J but without a value in the last column. General. Complete and file Schedule J if you claim a deduction on item 14 of Part 5—Recapitulation. On Schedule J, itemize funeral expenses and expenses incurred in administering property subject to claims. List the names and addresses of persons to whom the expenses are payable and describe the nature of the expense. Do not list expenses incurred in administering property not subject to claims on this schedule. List them on Schedule L instead. The deduction is limited to the amount paid for these expenses that is allowable under local law but may not exceed: 1. The value of property subject to claims included in the gross estate, plus 2. The amount paid out of property included in the gross estate but not subject to claims. This amount must actually be paid by the due date of the estate tax return. The applicable local law under which the estate is being administered determines which property is and is not subject to claims. If under local law a particular property interest included in the gross estate would bear the burden for the payment of the expenses, then the property is considered property subject to claims. Unlike certain claims against the estate for debts of the decedent (see CAUTION ! -32- Instructions for Form 706 (Rev. 09-2021)