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The expenses deductible on this schedule are limited to those that are the result of settling the decedent's interest in the property or of vesting good title to the property in the beneficiaries. Expenses incurred on behalf of the transferees (except those described earlier) are not deductible. Examples of deductible and nondeductible expenses are provided in Regulations section 20.2053-8(d). List the names and addresses of the persons to whom each expense was payable and the nature of the expense. Identify the property for which the expense was incurred by indicating the schedule and item number where the property is included in the gross estate. If you do not know the exact amount of the expense, you may deduct an estimate, provided that the amount may be verified with reasonable certainty and will be paid before the period of limitations for assessment (referred to earlier) expires. Keep all vouchers and receipts for inspection by the IRS. Schedule M—Bequests, etc., to Surviving Spouse (Marital Deduction) 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 23 of Part 5—Recapitulation for information on how to estimate and report the value of these assets. General You must complete Schedule M and file it with the return if you claim a deduction on item 21 of Part 5—Recapitulation. The marital deduction is authorized by section 2056 for certain property interests that pass from the decedent to the surviving spouse. You may claim the deduction only for property interests that are included in the decedent's gross estate (Schedules A through I). CAUTION ! Note. The marital deduction is generally not allowed if the surviving spouse is not a U.S. citizen. The marital deduction is allowed for property passing to such a surviving spouse in a QDOT or if such property is transferred or irrevocably assigned to such a trust before the estate tax return is filed. The executor must elect QDOT status on the return. See the instructions that follow for details on the election. Property Interests That You May List on Schedule M Generally, you may list on Schedule M all property interests that pass from the decedent to the surviving spouse and are included in the gross estate. However, do not list any nondeductible terminable interests (described later) on Schedule M unless you are making a QTIP election. The property for which you make this election must be included on Schedule M. See Qualified terminable interest property, later. For the rules on common disaster and survival for a limited period, see section 2056(b)(3). You may list on Schedule M only those interests that the surviving spouse takes: 1. As the decedent's legatee, devisee, heir, or donee; 2. As the decedent's surviving tenant by the entirety or joint tenant; 3. As an appointee under the decedent's exercise of a power or as a taker in default at the decedent's nonexercise of a power; 4. As a beneficiary of insurance on the decedent's life; 5. As the surviving spouse taking under dower or curtesy (or similar statutory interest); and 6. As a transferee of a transfer made by the decedent at any time. Property Interests That You May Not List on Schedule M Do not list the following on Schedule M. 1. The value of any property that does not pass from the decedent to the surviving spouse. 2. Property interests that are not included in the decedent's gross estate. 3. The full value of a property interest for which a deduction was claimed on Schedules J through L. The value of the property interest should be reduced by the deductions claimed with respect to it. 4. The full value of a property interest that passes to the surviving spouse subject to a mortgage or other encumbrance or an obligation of the surviving spouse. Include on Schedule M only the net value of the interest after reducing it by the amount of the mortgage or other debt. 5. Nondeductible terminable interests (described later). 6. Any property interest disclaimed by the surviving spouse. Terminable Interests Certain interests in property passing from a decedent to a surviving spouse are referred to as terminable interests. These are interests that will terminate or fail after the passage of time, or on the occurrence or nonoccurrence of a designated event. Examples are life estates, annuities, estates for terms of years, and patents. The ownership of a bond, note, or other contractual obligation, which when discharged would not have the effect of an annuity for life or for a term, is not considered a terminable interest. Nondeductible terminable interests. Unless you are making a QTIP election, do not enter a terminable interest on Schedule M if: 1. Another interest in the same property passed from the decedent to some other person for less than adequate and full consideration in money or money's worth; and 2. By reason of its passing, the other person or that person's heirs may enjoy part of the property after the Example—Listing Property Interests on Schedule M Item number Description of property interests passing to surviving spouse. For securities, give CUSIP number. If trust, partnership, or closely held entity, give EIN. Amount All other property: B1 One-half the value of a house and lot, 256 South West Street, held by decedent and surviving spouse as joint tenants with right of survivorship under deed dated July 15, 1975 (Schedule E, Part 1, item 1) . . . . . . . . . . . . . . . . . . $182,500 B2 Proceeds of Metropolitan Life Insurance Company Policy No. 104729, payable in one sum to surviving spouse (Schedule D, item 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 B3 Cash bequest under Paragraph Six of will . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 Instructions for Form 706 (Rev. 09-2021) -35-