Estate Tax Return Checklist - Form 706: Schedules

Estate Tax Return Checklist  
Form 706: Schedules  

SCHEDULE	ITEMS LISTED
	ASSETS
A -- Real Estate	All land, buildings, warehouses, docks, piers, etc., except those owned jointly by taxpayer and another (jointly owned property goes on Schedule E).  Mortgages go on Schedule C, not A.
A-1 -- Special Use Valuation	Additional information required for computation of and election of special use valuation.
B -- Stocks & Bonds	All stocks and securities.  Savings bonds.  Stock in closely held businesses.  (Short-term notes go on Schedule C).  Interest and dividends must be shown separately.
C -- Mortgages, Notes & Cash	Cash on hand.  Short-term notes (Notes that are sufficiently long term to be bonds are on Schedule B).  Mortgages held on property owned by others.  (Does not include debts secured by mortgages, which are liabilities rather than assets; these are reflected on Schedule K or in valuing the mortgaged property).
D -- Insurance on Decedent's Life	Life insurance policies where both the decedent was the insured and the decedent had an ownership in interest in the policy or its proceeds.  (Does not include insurance on the life of another owned by decedent, or insurance on decedent's life, unless he had one of the interests discussed in this section).
E -- Jointly Owned Property	All jointly owned property even if  it would fit into one of the categories for Schedules A through D.  Includes jointly owned real estate (including tenancy by entirety), joint bank accounts, jointly owned stock, and all other property where decedent and another had a shared interest at the same time with a right of survivorship.  (Does not include interest in a partnership).
F -- Miscellaneous Property	All Assets of the estate not included in the above categories:  household effects, furniture, rugs, jewelry, paintings, sculpture, coin and stamp collections, patents, books, partnership interest, tax refunds due, insurance on the life of another, automobiles, interests in business, debts due decedent, farm products and growing crops, livestock, shares in trust funds, reversionary or remainder interest, and causes of action.
G -- Transfers During Decedent's Life	Transfers of a life insurance policy within three years of death, a relinquishment or transfer of a power of appointment (provided the power would have been includable in the estate had the decedent possessed it at death), or any transfer under IRC §§2036 through 2038 (if such life estate, interest or power would have been included if decedent possessed it at death).  Gift taxes paid on gifts within three years of death are also listed.
H -- Powers of Appointment	Powers allowing the decedent to designate the recipient of property that could be exercised in favor of the decedent, his creditors, his estate or the creditors of his estate and that the decedent could exercise immediately before his death or by his will.
I -- Annuities	Annuities, or any other contract that provides for periodic payments to decedent for any period that cannot be ascertained without reference to the date of decedent's death or that does not in fact end before decedent's death, that provide for payments to someone other than the decedent after his death.
	EXPENSES, DEBTS, ETC.
J -- Funeral Expenses & Expenses Incurred in Administering Property Subject to Claims	Expenses of the estate, funeral, decedent's last illness.  Administration expenses allowed by probate court.  (Some expenses may be deductible againsteither estate tax or income tax of the estate).
K -- Debts of Decedent & Mortgages & Liens	All debts for which decedent was liable at the time of his death.  Charge accounts, bank loans, home mortgage, debts owed to stock brokers, business debts of sole proprietorship (not a corporation), taxes due, unpaid utility bills, and other legally enforceable claims for debts.  (Does not include non-recourse debt--that for which the decedent was not personally liable but that was on his property--that is reflected in valuation of the property subject to the debt).
L -- Net Losses During Administration & Expenses Incurred in Administering Property Not Subject to Claims	Casualty, theft, etc., losses that occur during administration.  Cost of preserving and administering property not subject to claims and distributing property not subject to claims.
M -- Bequests to Surviving Spouse	All interests that qualify for the marital deduction.
N -- ESOP Deduction	Computation of deduction for qualified sales of employer securities to an employee stock ownership plan.
O -- Charitable Bequests	Property eligible for the charitable deduction is listed.
	CREDITS
P -- Credit for Foreign Death Taxes	Death taxes paid to a foreign country on foreign property that is included in the estate for US estate tax purposes.
Q -- Credit for Tax on Prior Transfers	Tax paid by estate of another on property that passed to decedent within ten years before or two years after decedent's death.
R -- Generation-Skipping Transfer Tax	Schedule is used to compute the generation -skipping transfer (GST) tax that is payable by an estate.  Schedule R-1 is used to compute the GST tax that is payable by certain trusts that are includable in the gross estate.

Reference:  Matthew Bender's Tax Manual, New York, NY, www.irs.gov