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claims to be deductible, all of the following conditions must be met. • The decedent and the decedent's spouse must have entered into a written agreement relative to their marital and property rights. • The decedent and the spouse must have been divorced before the decedent's death and the divorce must have occurred within the 3-year period beginning on the date 1 year before the agreement was entered into. It is not required that the agreement be approved by the divorce decree. • The property or interest transferred under the agreement must be transferred to the decedent's spouse in settlement of the spouse's marital rights. You may not deduct a claim made against the estate by a remainderman relating to section 2044 property. Section 2044 property is described in the instructions for line 7 in Part 4—General Information. Include in this schedule notes unsecured by mortgage or other lien and give full details, including: • Name of payee, • Face and unpaid balance, • Date and term of note, • Interest rate, and • Date to which interest was paid before death. Include the exact nature of the claim as well as the name of the creditor. If the claim is for services performed over a period of time, state the period covered by the claim. Example. Edison Electric Illuminating Co., for electric service during December 2020, $150. If the amount of the claim is the unpaid balance due on a contract for the purchase of any property included in the gross estate, indicate the schedule and item number where you reported the property. If the claim represents a joint and separate liability, give full facts and explain the financial responsibility of the co-obligor. Property and income taxes. The deduction for property taxes is limited to the taxes accrued before the date of the decedent's death. Federal taxes on income received during the decedent's lifetime are deductible, but taxes on income received after death are not deductible. Keep all vouchers or original records for inspection by the IRS. Allowable death taxes. If you elect to take a deduction for foreign death taxes under section 2053(d) rather than a credit under section 2014, the deduction is subject to the limitations described in section 2053(d) and its regulations. If you have difficulty figuring the deduction, you may request a computation of it. Send your request within a reasonable amount of time before the due date of the return to: Department of the Treasury Commissioner of Internal Revenue Washington, DC 20224

Attach to your request a copy of the will and relevant documents, a statement showing the distribution of the estate under the decedent's will, and a computation of the state or foreign death tax showing any amount payable by a charitable organization. Mortgages and Liens Under Mortgages and Liens, list only obligations secured by mortgages or other liens on property included in the gross estate at its full value or at a value that was undiminished by the amount of the mortgage or lien. If the debt is enforceable against other property of the estate not subject to the mortgage or lien, or if the decedent was personally liable for the debt, include the full value of the property subject to the mortgage or lien in the gross estate under the appropriate schedule and deduct the mortgage or lien on the property on this schedule. However, if the decedent's estate is not liable, include in the gross estate only the value of the equity of redemption (or the value of the property less the amount of the debt), and do not deduct any portion of the indebtedness on this schedule. Notes and other obligations secured by the deposit of collateral, such as stocks, bonds, etc., should also be listed under Mortgages and Liens. Description Include under the “Description” column the particular schedule and item number where the property subject to the mortgage or lien is reported in the gross estate. Include the name and address of the mortgagee, payee, or obligee, and the date and term of the mortgage, note, or other agreement by which the debt was established. Also include the face amount, the unpaid balance, the rate of interest, and the date to which the interest was paid before the decedent's death. Schedule L—Net Losses During Administration and Expenses Incurred in Administering Property Not 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 L but without a value in the last column. Complete Schedule L and file it with the return if you claim deductions on either item 19 or item 20 of Part 5—Recapitulation. Net Losses During Administration You may deduct only those losses from thefts, fires, storms, shipwrecks, or other casualties that occurred during the settlement of the estate. Deduct only the amount not reimbursed by insurance or otherwise. Describe in detail the loss sustained and the cause. If you received insurance or other compensation for the loss, state the amount collected. Identify the property for which you are claiming the loss by indicating the schedule and item number where the property is included in the gross estate. If you elect alternate valuation, do not deduct the amount by which you reduced the value of an item to include it in the gross estate. Do not deduct losses claimed as a deduction on a federal income tax return or depreciation in the value of securities or other property. Expenses Incurred in Administering Property Not Subject to Claims You may deduct expenses incurred in administering property that is included in the gross estate but that is not subject to claims. Only deduct these expenses if they were paid before the section 6501 period of limitations for assessment expired. The expenses deductible on this schedule are usually expenses incurred in the administration of a trust established by the decedent before death. They may also be incurred in the collection of other assets or the transfer or clearance of title to other property included in the decedent's gross estate for estate tax purposes, but not included in the decedent's probate estate. CAUTION ! -34- Instructions for Form 706 (Rev. 09-2021)