Form 706 (Rev. 10-88)

Instructions for Schedule F.— Other
Miscellaneous Property

You must complete Schedule F and file it with the return.

On Schedule F list all items that must be included in the
gross estate that are not reported on any other schedule,
including:

@ Debts due the decedent (other than notes and

mortgages included on Schedule C)

@ Interests in business
@ Insurance on the life of another (obtain and attach

Form 712, Life Insurance Statement, for each policy)

Note for single premium or paid-up policies: /n

certain situations, for example where the surrender

value of the policy exceeds its replacement cost, the
true economic value of the policy will be greater than
the amount shown on line 56 of Form 712. In these
situations you should report the full economic value of

the policy on Schedule F. See Rev. Rul. 78-137, 1978-

1C.B. 280 for details.

@ Section 2044 property

@ Claims (including the value of the decedent's interest
in a claim for refund of income taxes or the amount of
the refund actually received)

@ Rights

@ Royalties

@ Leaseholds

e Judgments

@ Reversionary or remainder interests

@ Shares in trust funds (attach a copy of the trust
instrument)

@ Household goods and personal effects, including
wearing apparel
@ Farm products and growing crops
e Livestock
@ Farm machinery
@ Automobiles
lf the decedent owned any interest in a partnership or
unincorporated business, attach a statement of assets and
liabilities for the valuation date and for the 5 years before
the valuation date. Also attach statements of the net
earnings for the same 5 years. You must account for
goodwill in the valuation. In general, furnish the same
information and follow the methods used to value close
corporations. See the instructions for Schedule B.

All partnership interests should be reported on Schedule
F unless the partnership interest, itself, is jointly owned.
Jointly owned partnership interests should be reported on
Schedule E.

If real estate is owned by the sole proprietorship, it
should be reported on Schedule F and not on Schedule A.
Describe the real estate with the same detail required for
Schedule A.

Line 1.—If the decedent owned at the date of death
articles with artistic or intrinsic value (for example, jewelry,
furs, silverware, books, statuary, vases, oriental rugs, coin
or stamp collections), check the ‘‘Yes"’ box on line 1 and
provide full details. If any one article is valued at more than
$3,000, or any collection of similar articles is valued at
more than $10,000, attach an appraisal by an expert under
oath and the required statement regarding the appraiser’s
qualifications (see Regulations section 20.2031-6(b)).

Schedule F—Page 18


SCHEDULE R-1 Generation-Skipping Transfer Tax

(Form 706) Direct Ski OMB No. 1545-0015
Ss From a Trust a

(October 1988) P Expires 8-30-91

Department of the Treasury Payment Voucher

Internal Revenue Service

Executor: File one copy with Form 706 and send two copies to the fiduciary. Do not pay the tax shown. See the separate instructions.
Fiduciary: See instructions on following page. Pay the tax shown on line 8.

Name of trust Trust's EIN

‘Name and title of fiduciary Name of decedent

‘Address of fiduciary (number and street) Decedent's SSN Service Center where Form 706 was filed
City, state, and ZIP code Name of enor

‘Address of executor (number and street) City, state, and ZIP code

Date of decedent's death Filing due date of Schedule R, Form 706 (with extensions)

Part 1.—Computation of the GST Tax on the Direct Skip

Description of property interests subject to the direct skip Estate tax value

Total estate tax value of all property interests listed above .

Estate taxes, state death taxes, and other charges borne by the property interests listed above .
Subtract line 2 from line 1 . .
Total grandchild exclusion(s) claimed against property interests listed above |

Tentative maximum direct skip from trust. (Subtract line 4 from line 3.)

1

2

3

4

5

GST exemption allocated 6

Subtract line6fromline5 . . . Soe 7
esr tax due from fiduclary « ivide line 7 by 2. 2818182) (See instructions if property not bear the tne MM

}T tax.)

ONATEWHe

Under penalties of perjury, | declare that I have eramined this return, including ‘accompanying schedules and statements, and to the best of my knowledge and belie, it is true,
correct, and complete.

Signature(s) of executor(s) Date

Signature of fiduciary or officer representing fiduciary Date

Schedule R-1 (Form 706)—Page 32


Form 706 (Rev. 10-88)

Instructions for Schedule C.— Mortgages,
Notes, and Cash

If the total gross estate contains any mortgages, notes, or
cash, you must complete Schedule C and file it with the
return.

On Schedule C list mortgages and notes payable to the
decedent at the time of death. (Mortgages and notes
payable by the decedent should be listed (if deductible) on
Schedule K.) Also list on Schedule C cash the decedent had
at the date of death.

Group the items in the following categories and list the
categories in the following order:

1. Mortgages.—List: (1) the face value and unpaid
balance; (2) date of mortgage; (3) date of maturity; (4)
name of maker; (5) property mortgaged; and (6) interest
dates and rate of interest. For example: bond and mortgage
of $10,000, unpaid balance $4,000; dated January 1,
1979; John Doe to Richard Roe; premises 22 Clinton
Street, Newark, N.J.; due January 1, 1989, interest payable
at 6% a year January 1 and July 1.

2. Promissory notes.—Describe in the same way as
mortgages.

3. Contract by the decedent to sell land.—List: (1) the
name of the purchaser; (2) date of contract; (3) description
of property; (4) sale price; (5) initial payment; (6) amounts
of installment payment; (7) unpaid balance of principal;
and (8) interest rate.

4. Cash in possession.—List separately from bank
deposits.

5. Cash in banks, savings and loan associations, and
other types of financial organizations. —List: (1) the
name and address of each financial organization; (2)
amount in each account; (3) serial number; and (4) nature
of account, indicating whether checking, savings, time
deposit, etc. If you obtain statements from the financial
organizations, keep them for Internal Revenue Service
inspection.

Schedule C—Page 12




Form 706 (Rev. 10-88)

Estate of:

SCHEDULE A—Real Estate
(For jointly owned property that must be disclosed on Schedule E, see the Instructions for Schedule E.)
(Real estate that is part of a sole is proprietorship should be shown on Schedule F. Real estate that is included in the gross

estate under section 2035, 203
gross estate under section '2041 should be shown on Schedule H., )

(If you elect section 2032A valuation, you must complete Schedule A and Schedule A-1.)

2037, or 2038 should be shown on Schedule G. Real estate that is included in the

Item
number

Description

Alternate
valuation date

Alternate value —_| Value at date of death

1

Total from continuation schedule(s) (or additional sheet(s)) attached to this schedule .

TOTAL. (Also enter on Part 5, Recapitulation, page 3, at item 1.)

(If more space is needed, attach the continuation schedule from the end of this nackage or r additional sheets of the same size.)

Schedule A—Page 4


Form 706 (Rev. 10-88)

Estate of:

Part 2.—Direct Skips Where the Property Interests Transferred Bear the GST Tax on the Direct Skips

Name of skip person

Description of property interest transferred

Estate tax value

1 Total estate tax values of all property interests listed above .
2 Estate taxes, state death taxes, and other charges borne by the property interests listed above .

3 GST taxes borne by the property interests listed above but imposed on direct * skips other than those

shown on this Part 2. (See instructions.)

4 Total fixed taxes and other charges. (Add lines 2 and 3. )

5 Subtract line 4 from line 1 .

6 Total grandchild exclusion(s) claimed against property interests listed above .
7 Total tentative maximum direct skips. (Subtract line 6 from line 5.)

8 GST exemption allocated
9 Subtract line 8 from line 7 .
10 GST tax due (divide line 9 by 2.: 818182)

11 Enter the amount from line 10 of Schedule R, Part 3

12 Total GST taxes payable by the estate. Gad ti lines 10 and 11, LE Enter here and. on ‘tine 22 of the Tax

Computation on page 1 .

l= lo [OO N & fn me wo

es
cS

Schedule R—Page 30


Form 706 (Rev. 10-88)

Estate of:
SCHEDULE G—Transfers During Decedent's Life
(If you elect section 2032A valuation, you must complete Schedule G and Schedule A-1.)
Iter Description Alternate
number For securities, give CUSIP number, if available. valuation date Altemate value | Value at date of death

A. | Gift tax paid by the decedent or the estate for all gifts made by the decedent or
his or her spouse within 3 years before the decedent's death (section 2035(c)) XX XX X

B. | Transfers includible under section 2035(a), 2036, 2037, or 2038:

Total from continuation schedule(s) (or additional sheet(s)) attached to this schedule .

TOTAL. (Also enter on Part 5, Recapitulation, page 3, at item 7.) .

SCHEDULE H—Powers of Appointment
(If you elect section 2032A valuation, you must complete Schedule H and Schedule A-1.)

number Description vaincernate Alternate value —_| Value at date of death
1

Total from continuation schedule(s) (or additional sheet(s)) attached to this schedule

TOTAL. (Also enter on Part 5, Recapitulation, page 3, at item 8.) . .
(If more space is needed, attach the continuation schedule from the end of this package or radditional sheets of the same size.)
The instructions to Schedules G and H th ite instructi
¢ instructions to jules G ant are in le separate instructions. ) Schedules Gand H—Page 19



Form 706 (Rev. 10-88)

Estate of:

SCHEDULE K—Debts of the Decedent, and Mortgages and Liens

Item
number

Debts of the Decedent—Creditor and nature of claim, and allowable death taxes ‘Amount unpaid to date

Amount claimed as

‘Amount in contest ‘3 deduction

Total from continuation schedule(s) (or additional sheet(s)) attached to this schedule

TOTAL. (Also enter on Part 5, Recapitulation, page 3, at item 12.)

Item
number

Mortgages and Liens—Description

Amount

Total from continuation schedule(s) (or additional sheet(s)) attached to this schedule .

TOTAL. (Also enter on Part 5, Recapitulation, page 3, at item 13.)

(If more space is needed, attach the continuation schedule from the end of this package or additional sheets of the same size.)
(The instructions to Schedule K are in the separate instructions.)

Schedule K —Page 23


Form 706 (Rev. 10-88)

Estate of:

SCHEDULE I—Annuities

Note: Generally, no exclusion is allawed for the estates of decedents dying after December 31, 1984 (see instructions).

A Are you excluding from the decedent's gross estate the value of a lump-sum distribution described in section 2039(f)(2)?

If “Yes,” you must attach the information required by the instructions.

Yes | No

UML

Item Description Alternate Includible Includible
number Show the entire value of the annuity before any exclusions. valuation date alternate value _ value at date of death
1

Total from continuation schedule(s) (or additional sheet(s)) attached to this schedule _.

TOTAL. (Also enter on Part 5, Recapitulation, page 3, at item 9.) .

(If more space is needed, attach the continuation schedule fram the end of This pe package or T additional sheets of the same size.)
Schedule |I—Page 20

(The instructions to Schedule | are in the separate instructions.)


Form 706 (Rev. 10-88)

Estate of:
Part 3.—Direct Skips Where the Property Interests Transferred Do Not Bear the GST Tax on the
Direct Skips
Name of skip person Description of property interest transferred Estate tax value

1 Total estate tax values of all property interests listed above . 1

2 Estate taxes, state death taxes, and other charges borne by the property interests listed above . 2

3 GST taxes borne by the property interests listed above but imposed ‘on direct t skips other than those

shown on this Part 3. (See instructions.) : : fn .. bs

4 Total fixed taxes and other charges. (Add lines 2 and 13, ) 4

5 Subtract line 4 from line 1 . . 5

6 Total grandchild exclusion(s) claimed against property interests listed above . 6

7 Total tentative maximum direct skips. (Subtract line 6 from line 5.) 7

8 GST exemption allocated 8

9 Subtract line 8 from line 7 . 9
10 GST tax due (multiply line 9 by .55). Enter hera ande on Schedule R Part 2, line 1. 10

Schedule R—Page 31


Form 706 (Rev. 10-88)

Instructions for Schedule E.— Jointly Owned
Property

You must 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.

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, must be entered on this schedule.

Property that the decedent held as a tenant in common
should not be listed on this schedule, but the value of the
interest should be reported on Schedule A if real estate, or
if personal property on the appropriate schedule. Similarly,
community property held by the decedent and spouse
should be reported on the appropriate Schedules A through
|. The decedent’s interest in a partnership should not be
entered on this schedule unless the partnership interest
itself is jointly owned. Solely owned partnership interests
should be reported on Schedule F, “Other Miscellaneous
Property.”

Part 1.—Qualified joint interests held by decedent and

spouse. —Under section 2040(b)(2), a joint interest is a

qualified joint interest if the decedent and the surviving

spouse held the interest as:

Tenants by the entirety; or

e Joint tenants with right of survivorship if the decedent
and the decedent's spouse are the only joint tenants.

Interests which meet either of the two requirements
above should be entered in Part 1. Joint interests that do
not meet either of the two requirements above should be
entered in Part 2.

Under ‘‘Description,"’ describe the property as required
in the instructions for Schedules A, B, C, and F for the type
of property involved. For example, jointly held stocks and
bonds should be described using the rules given in the
instructions to Schedule B.

Under ‘Alternate value” and ‘‘Value at date of death,”
enter the full value of the property.

Note: Legislation was recently enacted which disallows the
special treatment under section 2040(b) for property held
jointly by a decedent and a surviving spouse who is not a
U.S. citizen, effective for estates of decedents dying after
November 10, 1988. You must report these joint interests
on Part 2 of Schedule E, not Part 1.

Part 2.— Other joint interests. —All joint interests that
were not entered in Part 1 must be entered in Part 2.

For each item of property, enter the appropriate letter A,
B, C, etc., from line 2a to indicate the name and address of
the surviving co-tenant.

Under ‘‘Description,” describe the property as required
in the instructions for Schedules A, B, C, and F for the type
of property involved.

In the ‘Percentage includible”’ column, enter the
percentage of the total value of the property that you intend
to include in the gross estate.

Generally, you must include the full value of the jointly
owned property in the gross estate. However, the full value
should not be included if you can show that a part of the
property originally belonged to the other tenant or tenants
and was never received or acquired by the other tenant or
tenants from the decedent for less than an adequate and
full consideration in money or money's worth, or unless you
can show that any part of the property was acquired with
consideration originally belonging to the surviving joint
tenant or tenants. In this case, you may exclude from the
value of the property an amount proportionate to the
consideration furnished by the other tenant or tenants.
Relinquishing or promising to relinquish dower, curtesy, or
statutory estate created instead of dower or curtesy, or
other marital rights in the decedent's property or estate is
not consideration in money or money’s worth. See the
Schedule A instructions for the valye to shaw for real
property that is subject to a mortgage.

If the property was acquired by the decedent and another
person or persons by gift, bequest, devise, or inheritance as
joint tenants and their interests are not otherwise specified
by law, include only that part of the value of the property
that is figured by dividing the full value of the property by
the number of joint tenants.

If you believe that less than the full value of the entire
property is includible in the gross estate for tax purposes,
you must establish the right to include the smaller value by
attaching proof of the extent, origin, and nature of the
decedent's interest and the interest(s) of the decedent's
co-tenant or co-tenants.

In the ‘‘Includible alternate value” and ‘‘Includible value
at date of death’’ columns, you should enter only the values
that you believe are includible in the gross estate.

Schedule E—Page 16


Form 706 (Rev. 10-88)

Instructions for Schedule A-1.—Section 2032A
Valuation

The election to value certain farm and closely held business
property at its special use value is made by checking “Yes” to
line 2 of Part 3, Elections by the Executor. Schedule A-1 is used
to report the additional information that must be submitted to
support this election. In order to make a valid election, you must
complete Schedule A-1 and attach all of the required statements
and appraisals.

For definitions and additional information concerning special
use valuation, see section 2032A and the related regulations.

Part 1.—Type of Election
Estate and GST Tax Elections. —If you make an estate tax special
use value election, you must also make a GST tax special use value
election. You may not make a GST tax special use value election
unless you also make an estate tax special use value election.

You must value each specific property interest at the same value
for GST tax purposes that you value it at for estate tax purposes.

Protective Election.—To make the protective election described
in the separate instructions for line 2 of Part 3, Elections by the
Executor, you must check this box, enter the decedent's name and
social security number in the spaces provided at the top of
Schedule A-1, and complete line 1 and column A of lines 3 and 4 of
Part 2. For purposes of the protective election, list on line 3 all of
the real property that passes to the qualified heirs even though
some of the property will be shown on line 2 when the additional
notice of election is subsequently filed. You need not complete
columns B-D of lines 3 and 4. You need not complete any other
line entries on Schedule A-1. Completing Schedule A-1 as
described above constitutes a Notice of Protective Election as
described in Regulations section 20.2032A-8(b).

Part 2.—Notice of Election

Line 10.—Because the special use valuation election creates a
potential tax liability for the recapture tax of section 2032A(c),
you must list each person who receives an interest in the specially
valued property on Schedule A-1. If there are more than 8 persons
who receive interests, use an additional sheet that follows the
format of line 10. In the columns “Fair market value” and “Special
use value,” you should enter the total respective values of all the
specially valued property interests received by each person.

GST Tax Savings.—In order to compute the additional GST tax
due upon disposition (or cessation of qualified use) of the
property, each “skip person” (as defined in the instructions to
Schedule R) who receives an interest in the specially valued
property must know the total GST tax savings with respect to all of
the interests in specially valued property received. This GST tax
savings is the difference between the total GST tax that was
imposed with respect to all of the interests in specially valued
property received by the skip person valued at their special use
value and the total GST tax that would have been imposed on the
same interests received by the skip person had they been valued
at their fair market value.

Because the GST tax depends on the executor’s allocation of
the GST exemption and the grandchild exclusion, the skip person
who receives the interests is unable to compute this GST tax
savings.

For each skip person who receives an interest in specially
valued property, you must attach worksheets showing the total
GST tax savings attributable to all of that person’s interests in
specially valued property.

How To Compute the GST Tax Savings.—Before computing
each skip person's GST tax savings, you must complete Schedules
R and R-1 for the entire estate (using the special use values).

For each skip person, you must complete two Schedules R
(Parts 2 and 3 only) as worksheets, one showing the interests in
specially valued property received by the skip person at their
special use value and one showing the same interests at their fair
market value.

If the skip person received interests in specially valued property
that were shown on Schedule R-1, show these interests on the
Schedule R, Parts 2 and 3 worksheets, as appropriate. Do not use
Schedule R-1 as a worksheet.

Completing the Special Use Value Worksheets.—On lines 2-6
and 8, enter “-0-”.

Completing the Fair Market Value Worksheets.—Lines 2 and 3,
fixed taxes and other charges. —If valuing the interests at their
fair market value (instead of special use value) causes any of
these taxes and charges to increase, enter the increased amount
(only) on these lines and attach an explanation of the increase.
Otherwise, enter “-0-".

Line 6—Grandchild exclusion.—If part of the skip person's
grandchild exclusion available for Form 706 (shown on Schedule
R, Part 1A, column D) was not claimed on the Schedules R and R-1
that you are actually filing with this Form 706, you must enter the
unused grandchild exclusion on line 6 and attach a computation of
the total grandchild exclusion claimed on the Form 706 to support
your entry. If you do not claim the entire available exclusion, it will
be allocated by the IRS, upon disposition or cessation, to the
property interests in the order you listed them.

If interests are shown on both Parts 2 and 3 worksheets, you
should divide the previously unclaimed grandchild exclusion
between the Parts as required to offset the transfers.

If all of the skip person’s grandchild exclusion available for Form
706 was already claimed on the Schedules R and R-1 that you are
filing with this Form 706, enter “-O-” on line 6 of Parts 2 and 3.
Line 8—GST exemption.—If you completed line 10 of Schedule
R, Part 1B, enter on line 8 the amount shown for the skip person
on the line 10 special use allocation schedule you attached to
Schedule R. If you did not complete line 10 of Schedule R, Part
1B, enter “-0-” on line 8.

Total GST Tax Savings.—For each skip person, subtract the
special use value worksheet, Part 2, line 12 tax amount from the
fair market value worksheet, Part 2, line 12 tax amount. This
difference is the skip person's total GST tax savings.

Part 3.—Agreement to Special Valuation Under
Section 2032A

The agreement to special valuation by persons with an interest in
property is required under section 2032A(a)(1)(B) and (d)(2) and
must be executed by all parties who have any interest in the
property being valued based on its qualified use as of the date of
the decedent's death.

An interest in property is an interest that, as of the date of the
decedent's death, can be asserted under applicable local law so
as to affect the disposition of the specially valued property by the
estate. Any person in being at the death of the decedent who has
any such interest in the property, whether present or future, or
vested or contingent, must enter into the agreement. Included are
owners of remainder and executory interests; the holders of
general or special powers of appointment; beneficiaries of a gift
over in default of exercise of any such power; joint tenants and
holders of similar undivided interests when the decedent held only
a joint or undivided interest in the property or when only an
undivided interest is specially valued; and trustees of trusts and
representatives of other entities holding title to, or holding any
interests in the property. An heir who has the power under local
law to caveat (challenge) a will and thereby affect disposition of
the property is not, however, considered to be a person with an
interest in property under section 2032A solely by reason of that
right. Likewise, creditors of an estate are not such persons solely
by reason of their status as creditors.

If any person required to enter into the agreement either
desires that an agent act for him or her or cannot legally bind
himself or herself due to infancy or other incompetency, or due to
death before the election under section 2032A is timely
exercised, a representative authorized by local law to bind the
person in an agreement of this nature is permitted to sign the
agreement on his or her behalf.

The Internal Revenue Service will contact the agent
designated in the agreement on all matters relating to continued
qualification under section 2032A of the specially valued real
property and on all matters relating to the special lien arising
under section 6324B. It is the duty of the agent as attorney-in-
fact for the parties with interests in the specially valued property
to furnish the IRS with any requested information and to notify
the IRS of any disposition or cessation of qualified use of any part
of the property.

Schedule A-1—Page 9


Form 706 (Rev. 10-88)

Schedule R.—Generation-Skipping Transfer Tax

Note: To avoid application of the deemed allocation rules, Form 706 and Schedule R should be filed to allocate the exemption to trusts which may
later have taxable terminations or distributions under section 2612 even if the form is not required to be filed to report estate or GST tax.

Part 1.—Reconciliations and Section 2652(a)(3) (Special QTIP) Election

A. Grandchild Exclusion Reconciliation (Section 1433(b)(3) of the Tax Reform Act of 1986)

A
Name of grandchild

B
Maximum allowable
exclusion

c
Total grandchild exclusions
claimed on gift tax returns

D
Grandchild exclusion available
for this Form 706

2

1... 2,000,000
2,000,000.

B. GST Exemption Reconciliation (Section 2631) and Section 2652(a)(3) Election

Check box > [_] if you are making a section 2652(a)(3) (special QTIP) election (see instructions)

YW y YM
aos

1 Maximum allowable GST exemption $1,000,000
2 Total GST exemption allocated by the decedent against decedent's lifetime transfers 2
3 Total GST exemption allocated by the executor, using Form 709, against decedent's lifetime transfers 3
4 GST exemption allocated on line 8 of Schedule R, Part 2 4
5 GST exemption allocated on line 8 of Schedule R, Part 3 5
6 Total GST exemption allocated on line 6 of Schedule(s) R-1 . 6
7 Total GST exemption allocated to intervivos transfers and direct skips (add lines 2-6) 7
8 GST exemption available to allocate to trusts and section 2032A interests (subtract line 7 from line 1) 8
9 Allocation of GST exemption to trusts (as defined for GST tax purposes):
A B c D E
GST exemption allocated Additional GST Trust's inclusion ratio
Name of trust Trust’s EIN on lines 2-6, above (see exemption allocated (optional—see
(ifany) instructions) (see instructions) instructions)
9D Total. May not exceed line 8, above . cae . [9D YY
10 GST exemption available to allocate to section 2032A interests received by individual beneficiaries
(subtract line 9D from line 8). You must attach special use allocation schedule (see instructions) . 10

(The instructions to Schedule R are in the separate instructions.)

Schedule R—Page 29


Form 706 (Rev. 10-88)

Part 2.—Property Interests Which Are Subject to a QTIP Election

Item Description of property interests passing to surviving spouse

Val
number (Describe portion of trust for which allocation is made.) ue

1

Total from continuation schedule(s) (or additional sheet(s)) attached to this schedule .

A. Total value of property interests subjecttoaQTiPelection. . . . . ..............[A

Part 3.—Reconciliation

1 Enterthetotalfromparth © 6. ee ee eb
2 Total interests passing to surviving spouse (add linesAand1,above). . . . . eee eee 2
3a Federal estate taxes (including section 4980A taxes) payable out of property interests listed on Parts 1 and 2 |_3a
b Other death taxes payable out of property interests listedonPartsland2.. . . . . . . . | 3B
¢ Federal and state GST taxes payable out of property interests listedonPartsland2 . . . . .L3¢
d Add items, b, andc SB

4 _Netvalue of property interests listed on Schedule M (subtract 3d from 2). Also enter on Part 5, Recapitulation, page 3, atitem18| 4

(if more space is needed, attach the continuation schedule from the end of this package or additional ‘Schedule M—Page 26
Sheets of the same size.)



Form 706 (Rev. 10-88)

Estate of:

Decedent's Social Security Number

SCHEDULE A-1—Section 2032A Valuation
Part 1.—Type of Election:

C Protective election (Regulations section 20.2032A-8(b)).—Complete Part 2, line 1, and column A of lines 3 and 4. (See instructions.)
CO Regular election.—Complete all of Part 2 (including line 11, if applicable) and Part 3. (See instructions.)

Part 2.—Notice of Election (Regulations section 20.2032A-8(a)(3))

Note: Ail real property entered on lines 2 and 3 must also be entered on Schedules A, E, F, G, or H, as applicable.
1 Qualified use—check one =» [] Farm used for farming, or

> [Trade or business other than farming
2 Real property used in a qualified use, passing to qualified heirs, and to be specially valued on this Form 706.

A B c D
Schedule and item Full value Adjusted value (with section Value based on qualified use
number from Form 706 (without section 2032A(b)(3\(B) 2032A(b)(3)(B) adjustment) (without section 2032A(b)(3\(B)
adjustment) adjustment)

Totals . Fo ee
Attach a legal description of all property listed on line 2.
Attach copies of appraisals showing the column B values for all property listed on line 2.

3__Real property used in a qualified use, passing to qualified heirs, but not specially valued on this Form 706.

A B c D
Schedule and item Full value Adjusted value (with section Value based on qualified use
number from Form 706 (without section 2032A(b)(3)(B) 2032A(b)(3)(B) adjustment) (without section 2032A(b)(3)(B)
adjustment) adjustment)

Totals . coe
If you checked “Regular election” you must attach copies of appraisals showing the column B values for all property listed on line 3.
(Continued on next page) Schedule A-1—Page 6



Form 706 (Rev. 10-88)

Instructions for Schedule A.— Real Estate

If the total gross estate contains any real estate, you must
complete Schedule A and file it with the return.

On Schedule A list real estate the decedent owned or had
contracted to purchase. Number each parcel in the left-
hand column.

Describe the real estate in enough detail so that IRS can
easily locate it for inspection and valuation. For each parcel
of real estate report the area and, if the parcel is improved,
describe the improvements. For city or town property,
report the street and number, ward, subdivision, block and
lot, etc. For rural property, report the township, range,
landmarks, etc.

If any item of real estate is subject to a mortgage for
which the decedent's estate is liable, that is, if the
indebtedness may be charged against other property of the
estate that is not subject to that mortgage or if the
decedent was personally liable for that mortgage, you must
report the full value of the property in the value column.

Enter the amount of the mortgage under ‘‘Description”’
on this schedule. The unpaid amount of the mortgage may
be deducted on Schedule K. If the decedent's estate is NOT
liable for the amount of the mortgage, report only the value
of the equity of redemption (or value of the property less
the indebtedness) in the value column as part of the gross
estate. Do not enter any amount less than zero. Do not
deduct the amount of indebtedness on Schedule K.

Also list on Schedule A real property the decedent
contracted to purchase. Report the full value of the
property and not the equity in the value column. Deduct the
unpaid part of the purchase price on Schedule K.

Report the value of real estate without reducing it for
homestead or other exemption, or the value of dower,
curtesy, or a statutory estate created instead of dower or
curtesy.

Explain how the reported values were determined and
attach copies of any appraisals.

Schedule A Examples
In this example the alternate valuation is not adopted; the date of death is January 1, 1988.
Item Alternate Value at
number Description valuation date |Alternate value! date of death
1 House and lot, 1921 William Street NW, Washington, DC (lot 6, square 481). Rent of
$2,700 due at end of each quarter, February 1, May 1, August: 1, and November 1.
Value based on appraisal, copy of which is attached. . 108,000
Rent due on item 1 for quarter ending November 1, 1987, but not collected at date of
death 2,700
Rent accrued on item 1 for November and December 1987 1,800
2 House and lot, 304 Jefferson Street, Alexandria, VA (lot 18, square 40). Rent of # $300
payable monthly. Value based on appraisal, copy of which is attached. 36,000
Rent due on item 2 for December 1987, but not collected atdateofdeath . . . . . 300
In this example alternate valuation Is adopted; the date of death is January 1, 1988.
Item Alternate Value at
number Description valuation date [Alternate value) date of death
1 House and lot, 1921 William Street NW, Washington, DC (lot 6, square 481). Rent of
$2,700 due at end of each quarter, February 1, May 1, August 1, and November 1.
Value based on appraisal, copy of which is attached. Not disposed ‘of within 6 months
following death . 7/1/88 90,000 108,000
Rent due on item 1 for quarter ending November 1, 3987, ‘but not collected unti Febuary
1988. 2/1/88 2,700 2,700
Rent accrued on item 1 for November and December 1987, collected on n February 1, 1988 2/1/88 1,800 1,800
2 House and lot, 304 Jefferson Street, Alexandria, VA (lot 18, square 40). Rent of $300
payable monthly. Value based on appraisal, copy of which is attached. Property
exchanged for farm on May 1, 1988 . : 5/1/88 30,000 36,000
Rent due on item 2 for December 1987, but not ‘collected unti February 1, 1988 . 2/1/88 300 300

Schedule A—Page 5


Form 706 (Rev. 10-88)

Estate of:

SCHEDULE F—Other Miscellaneous Property Not Reportable Under Any Other Schedule

(For jointly owned property that must be disclosed on Schedule E, see the Instructions for Schedule E.)

(if you elect section 2032A valuation, you must complete Schedule F and Schedule A-1.)

1 Did the decedent at the time of death own any articles of artistic or collectible value in excess of $3 000 or any collections whose artistic

or collectible value combined at date of death exceeded $10,000? .
If “Yes,” full details must be submitted on this schedule.

Yes | No

2 Has the decedent's estate, spouse, or any other person, received Cor will WN receive) any bonus or award as a result of the decedent's

employment or death?
If “Yes,” full details must be submitted c on this schedule.

3 Did the decedent at the time of death have, or have access to, a safe deposit box?

If “Yes,” state location, and if held in joint names of decedent and another, state name and relationship of joint depositor.

If any of the contents of the safe deposit box are omitted from the schedules in this return, explain fully why omitted.

Item Description Alternate.
Alte ite val
number For securities, give CUSIP number, if available, valuation date fernate value | Value at date of death
1

Total from continuation schedule(s) (or additional sheet(s)) attached to this schedule

TOTAL. (Also enter on Part 5, Recapitulation, page 3, at item 6.) .

(If more space is needed, attach the continuation schedule from the end of this package or additional sheets of the same size.)
Schedule F—Page 17


Form 706 (Rev. 10-88)

Part 3.—Agreement to Special Valuation Under Section 2032A
Estate of: Date of Death Decedent's Social Security Number

We (list all qualified heirs and other persons having an interest in the property required to sign this agreement)

being all the qualified heirs and

being all other parties having intetests in the property which is qualified real property and which is valued under section 2032A of the
Internal Revenue Code, do hereby approve of the election made by ,
Executor/Administrator of the estate of '
pursuant to section 2032A to value said property on the basis of the qualified use to which the property is devoted and do hereby enter into
this agreement pursuant to section 2032A(d).

The undersigned agree and consent to the application of subsection (c) of section 2032A ot the Code with respect to all the property
described on line 2 of Part 2 of Schedule A-1 of Form 706, attached to this agreement. Mote specifically, the undersigned heirs expressly
agree and consent to personal liability under subsection (c) of 2032A for the additional estate and GST taxes imposed by that subsection
with respect to their respective interests inl the above-described property in the event of certain early dispositions of the property or early
cessation of the qualified use of the property. It is understood that if a qualified heir disposes of any interest in qualified real property to any
member of his or her family, such member may thereafter be treated as the qualified heir with respect to such interest upon filing a Form
706-A and a new agreement.

The undersigned interested parties who are not qualified heirs consent to the collection of any additional estate and GST taxes imposed
under section 2032A(c) of the Code from the specially valued property.

If there is a disposition of any interest which passes or has passed to him or her or if there is a cessation of the qualified use of any specially
valued property which passes or passed to him or her, each of the undersigned heirs agrees to tile a Form 706-A, United States Additional
Estate Tax Return, and pay any additional estate and GST taxes due within 6 months of the disposition or cessation.

It is understood by all interested parties that this agreement is a coridition precedent to the election of special use valuation under section
2032A of the Code and must be executed by every interested party even though that person may not have received the estate (or GST) tax
benefits or be in possession of such property.

Each of the undersigned understands that by making this election, a lien will be created and tecorded putsuant to section 6324B of the
Code on the property referred to in this agreement for the adjusted tax differences with respect to the estate as defined in section
2032A(c)(2)(C).

As the interested parties, the undersigned desighate the following individual as their agent for all dealings with the Internal Revenue
Service concerning the continued qualification of the specially valued ptoperty under section 2032A of the Code and on all issues regarding
the special lien under section 6324B. The agent is authorized to act for the parties with respect to all dealings with the Service on matters
affecting the qualified real property described earlier. This authority includes the following:
To receive confidential information on all matters relating to continued qualification under section 2032A of the specially valued real
property and on all matters relating to the special lien arising under section 6324B.
@ To furnish the Service with any requested information concerning the property.
¢ To notify the Service of any disposition or cessation of qualified use of any part of the property.
© To receive, but not to endorse and collect, checks in payment of any refund of Internal Revenue taxes, penalties, or interest.
@ To execute waivers (including offers of waivers) of restrictions on assessment or collection of deficiencies in tax and waivers of notice
of disallowance of a claim for credit or refund.
@ To execute closing agreements under section 7121.
@ Other acts (specity) >
By signing this agreement, the agent agrees to provide the Service with any requested information concerning this property and to notify
the Service of any disposition or cessation of the qualified use of any part of this property.

Name of Agent Signature Address

The property to which this agreement relates is listed in Form 706, United States Estate (and Generation-Skipping Transfer) Tax Returh,
and in the Notice of Election, along with its fair market value according to section 2031 of the Code and its special use value according to
section 2032A. The name, address, social security number, and interest (including the value) of each of the undersigned in this property
are as set forth in the attached Notice of Election.

IN WITNESS WHEREOF, the undersigned have hereunto set their hands at ,
this_______ day of

Qualified Heirs

Other Interested Parties

Schedule A-1—Page 8


Form 706 (Rev. 10-88)

Estate of:

SCHEDULE J—Funeral Expenses and Expenses Incurred in Administering Property Subject to Claims

Note: Do not list on this schedule expenses of administering property not subject to claims. For those expenses, see the Instructions for Schedule L.

If executors’ commissions, attorney fees, etc., are claimed and allowed as a deduction for estate tax purposes, they are not allowable as a deduction in
computing the taxable income of the estate for Federal income tax purposes. They are allowable as an income tax deduction on Form 1041 if a waiver is filed

to waive the deduction on Form 706 (see the Form 1041 instructions).

Item

number Description Expense amount Total Amount
A. Funeral expenses:
1
Totalfuneralexpenses, 2 2. we tn fee eee eee ee
B. Administration expenses:
1 | Executors’ commissions—amount estimated /agreed upon/paid. (Strike out the words that do not
apply). ee hee eee eee ee
2 Attorney fees—amount estimated/agreed upon/paid. (Strike out the words that do not apply.) . . . . . « |.....-----eeeeee
3 Accountant fees—amount estimated/agreed upon/paid. (Strike out the words that do not apply.) . . - «+ + | -------- eee eee
Expense amount

4 | Miscellaneous expenses:

Total miscellaneous expenses from continuation schedule(s) (or additional sheet(s)) attached to this
schedule... ee ee

Total miscellaneous expenses

TOTAL. (Also enter on Part 5, Recapitulation, page 3, at item 11.) .

(If more space is needed, attach the continuation schedule from the end of this package or additional sheets of the same size.)

Schedule J—Page 21


rom 7106

(Rev. October 1988)

‘ax Re
Estate of a citizen or resident of the United States (see separate instructions). To be

United States Estate (and Generation-Skipping Transfer)

turn OMB No. 1545-0015,

Expires 8-30-91

Department of the Treasury | filed for decedents dying after October 22, 1986, and before January 1, 1990.

Internal Revenue Service For Paperwork Reduction Act Notice, see page 1 of the instructions.
1a Decedent's first name and middle initial (and maiden name, ifany) | 1b Decedent's last name 2 Decedent's social security no.
3 3a_ Domicile at time of death 3b Year domicile established | 4 Date of birth | 5 Date of death
a
Z| 6a Name of executor (see instructions) 6b Executor’s address (number and street including apartment number or rural
bo route; city, town, or post office; state; and ZIP code)
| 6c Executor’s social security number (see instructions)
3 i i
f 7a_Name and location of court where will was probated or estate administered 7b Case number
a
? 8 If decedent died testate, check here > [_] and attach a certified copy of the will. 9 If Form 4768 is attached, check here > [_]
hO If Schedule R-1 is attached, check here [_] | Seepage 2 for representative's authorization.
1 Total gross estate (from Part 5, Recapitulation, page 3, item 10). foe 1
2. Total allowable deductions (from Part 5, Recapitulation, page3, item 25). . . . . . . . . . -L2
3 Taxable estate (subtract line 2 fromline 1), 3
4 Adjusted taxable gifts (total taxable gifts (within the meaning of section 2503) made byt the decedent after
December 31, 1976, other than gifts that are includible in decedent's gross estate (section 2001(b))). . . |_4
5 Addiines3and4... . . a Loe 5
6 Tentative taxon the amount online 5 from Table Ain the instructions Loe Lon 6
Note: if decedent died before January 1, 1988, skip lines 7a-c and enter the amount from line 6 online 8
7a If line 5 exceeds $10,000,000, enter the lesser of line 5 or $21,040,000. If
line 5 is $10,000,000 or less, skip lines 7a and 7b and enter zero online 7c | 7a
b Subtract $10,000,000 fromline7a. . . . 2 2... . ~ L 2D
¢ Enter5%(.0S)ofline7b. 6... Ze
§| 8 Total tentative tax (add lines 6 and 1). 8
g 9 Total gift tax payable with respect to gifts made by the decedent after December 31, 1976. Include gift taxes
£ paid by the decedent's spouse for split gifts (section 2513) only if the decedent was the donor of these sits
8 and they are includible in the decedent's gross estate (see instructions) ene a)
FB] 10 Gross estate tax subtractlineQfromline8) . 6... eee 10
| }11 Unified credit against estate tax from Table B inthe instructions. . . . LIL
$4] 12 Adjustment to united credit. (This adjustment may nt exceed $6,000. See instructions.) 12
| 13 Allowable unified credit (subtract line 12fromlinel]) . . 1 2 1. ee 13
14 Subtract line 13 from line 10 (but do not enter less than zero) soe sone 14
15 Credit for state death taxes. Do not enter more than line 14. Compute credit by using amount on line 3 less
$60,000. See Table C in the instructions and attach credit evidence (see instructions) . woe LAB
16 Subtract line 15 from line 14 . oe 1 —
17 Credit for Federal gift taxes on pre- 1977 gits (section 2012\attach computation) 17
18 Credit for foreign death taxes (from Schedule(s) P). (Attach Form(s) 706CE) | 18
19 Credit for tax on prior transfers (from ScheduleQ). . . . . 19
20 Total(addlines17,18,and19). 2 2 2. . ee 20
21 Netestate tax (subtract line 20 fromline16) . . . . rn 21
22 Generation-skipping transfer taxes (from Schedule R, Part2, line 212) 22
23 Section 4980A increased estate tax (attach Schedule S (Form 706)) (see instructions) . 23
24 Total transfer taxes (add lines 21,22,and23). 6 2 1 1 1 we ee ee ee 24 —
25 Prior payments. Explain in an attached statement. . . . re a)
26 United States Treasury bonds redeemed in payment of estate tax . . . L26
27° Total(addlines 25and26) . . . Lo 27
28 Balance due (subtract line 27 from line 24) 28

Under penalties of perjury, | declare that | have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true,
correct, and complete. Declaration of preparer other than the executor is based on all information of which preparer has any knowledge.

Signature(s) of executor(s)

Signature of preparer other than executor Address (and ZIP code)




Form 7(

106 (Rev. 10-88)

Estate of:
SCHEDULE B—Stocks and Bonds
(For jointly owned property that must be disclosed on Schedule E, see the Instructions for Schedule E.)
tem | Description including face amount of bonds or number of shares and par value Alternate
number ‘ninere needed for identification. Give CUSIP number if avalabe. Unitvalue | valuation date Alternate value | Value at date of death
1

Total from continuation schedule(s) (or additional sheet(s)) attached to this schedule .

TOTAL. (Also enter on Part 5, Recapitulation, page 3, at item 2.) .

(If more space is needed, attach the continuation schedule from the end of this package or additional sheets of the same size.)

(The ir

instructions to Schedule B are in the separate instructions.)

Schedule B—Page 10


Form 706 (Rev. 10-88)

Estate of:

SCHEDULE P—Credit for Foreign Death Taxes

List all foreign countries to which death taxes have been paid and for which a credit is claimed on this return.

Ifa credit is claimed for death taxes paid to more than one foreign country, compute the credit for taxes paid to one country on this
sheet and attach a separate copy of Schedule P for each of the other countries.

The credit computed on this sheet is for the

Credit is computed under the

(insert title of treaty or “statute")
Citizenship (nationality) of decedent at time of death

(All amounts and values must be entered in United States money)

1 Total of estate, inheritance, legacy, and succession taxes imposed in the country named above attributable to property situated
in that country, subjected to these taxes, and included in the gross estate (as defined bystatute). . . . . . . se

Value of the gross estate (adjusted, if necessary, according to the instructions for item 2) .

won

Value of property situated in that country, subjected to death taxes imposed in that country, and included in the gross estate
(adjusted, if necessary, according to the instructions foritem3) . 6. 6 6 ee ee

.

Tax imposed by section 2001 reduced by the total credits claimed under sections 2010, 2011, and 2012 (see instructions)

a

Amount of Federal estate tax attributable to property specified at item 3. (Divide item 3 by item 2 and multiply the result by item 4.)

a

Credit for death taxes imposed in the country named above (the smaller of item 1 or item 5). Also enter on line 18 of Part 2, Tax
Computation. we

SCHEDULE Q—Credit for Tax on Prior Transfers

IRS office where estate

Name of transferor Social security number ‘tax return was filed

Date of death

c

Check here > [1 if section 201300 (special valuation of farm, etc., real property) adjustments to the computation of the ctedit were made (see
instructions).

Transferor
A B c

Item

Transferee’s tax as apportioned (from worksheet,
(line 7 + line 8) x line 35 for each column)

n

Transferor's tax (from each column of worksheet,
line20). ee

3 Maximum amount before percentage requirement
(for each column, enter amount from line 1 or 2,
whichever is smaller) ren

4 Percentage allowed (each column) (see
instructions). coe ee

a

Credit allowable (line 3 x line 4 for each column)

Mh

Y

TOTAL credit allowable (add columns A, B, and C y
of line 5). Enter here and on line 19 of Part 2, Tax
Computation . . . . . . . .. HH

(The instructions to Schedules P and Q are in the separate instructions.)

Schedules P and Q—Page 28


Form 706 (Rev. 10-88)

Estate of:

Note: For qualified sales after October 22, 1986, and before February 27, 1987, see “Transitional Rules” in the instructions for Schedule N.
SCHEDULE N —Qualified ESOP Sales (Under Section 2057)

1 Total qualified sales of employer securities to plans or cooperatives .
2 Total 401(a) distributions (see instructions)

3. Total transfers pursuant to options (see instructions)

4 Net sales amount (see instructions) .

5 Total proceeds attributable to transferred assets (see instructions) .

6 Addlines2through5. . . . . 1.

7 Subtract line 6 from line1 .

8 Multiply line 7 by 50%. Enter the amount here and on Part 5, Recapitulation, page 3, at item 23

You must attach the required statement by the employer or cooperative officer. (See instructions.)

1
2
3
4
5
6
7

SCHEDULE O—Charitable, Public, and Similar Gifts and Bequests

1 I the transfer was made by wil has any action been instituted to have interpreted or to contest the will or any provision thereof

affecting the charitable deductions claimed in this schedule? .
if “Yes,"' full details must be submitted with this schedule.

b According to the information and belief of the person or persons filing the return, is any such action designed or contemplated? .

If “Yes,” full details must be submitted with this schedule.

2 Did any property pass to charity as the result of a qualified disclaimer?
If “Yes,” attach a copy of the written disclaimer required by section 2518(b).

Item

number Name and address of beneficiary

Character of institution

1

Total from continuation schedule(s) (or additional sheet(s)) attached to this schedule.

3 Total . : . . oe oe
4a Federal estate tax a section 4980A \ taxes) payable out of property interests
listedabove . . sone
b Other death taxes payable outof property i interests listed above
¢ Federal and state GST taxes payable out of property interests listed above
d Additemsa,b,andc 2 6 1 ee ee ee

3
4a
4b
4c
Ad

5 Net value of property interests listed above (subtract 4d from 3). Also enter on Part 5, Recapitulation, page 3, atitem 19. | 5

(If more space is needed, attach the continuation schedule from the end of this package or additional sheets of the same size.)

(The instructions to Schedules N and O are in the separate instructions.)

Schedules N and O—Page 27


Form 706 (Rev. 10-88)

4 Personal property used in a qualified use and passing to qualified heirs.

A B
Schedule and item Adjusted value (with section
number from Form 706 2032A(b)(3)‘B) adjustment)

A (continued)
Schedule and item
number from Form 706.

B (continued)

Adjusted value (with section
2032A(b)(3)(B) adjustment)

“Subtotal” from Col. B, below left

Subtotal .

5 Enter the value of the total gross estate as adjusted under section 2032A(b)(3)(A).
6 Attach a description of the method used to determine the special value based on qualified use.
7 Did the decedent and/or a member of his or her family own all t property listed on line 2 for at least 5 years of the 8 years immediately

preceding the date of the decedent's death? .

8 Were there any periods during the 8-year period preceding th the date of the decedent’s death h during which the decedent or a

member of his or her family:
a Did not own the property listed on line 2 above?

b Did not use the property listed on line 2 above ina qualified use?

c Did not materially participate in the operation of the farm or other business within the n meaning of section ‘2032AeX6)? .

Total Adjusted Value

-Clves LINo

Yes | No

If “Yes” to any of the above, you must attach.a statement listing the periods. If applicable, describe whether the exceptions of sections

2032A(b)(4) or (5) are met.

9 Attach affidavits describing the activities constituting material participation and the identity and relationship to the decedent of the material participants.
10 Persons holding interests. Enter the requested information for each party who received any interest in the specially valued property.

Name Address
A
B
Cc
D
E
FE
G
H
Identifying number Relationship to decedent Fair market value Special use value
A
B
c
D
E
EF
G
H

You must attach a computation of the GST tax savings attributable to direct skips for each person listed above who is a skip person. (See instructions.)
11 Woodlands election.—Check here » [1 if you wish to make a woodlands election as described in section 2032A(e)(13). Enter the

Schedule and item numbers from Form 706 of the property for which you are making this election > _

You must attach a statement explaining why you are entitled to make this election. The IRS may issue regulations that require more
information to substantiate this election. You will be notified by IRS if you must supply further information.

Schedule A-1—Page 7




Form 706 (Rev. 10-88)

(Make copies of this schedule before completing it if you will need more than one schedule.)

Estate of:
CONTINUATION SCHEDULE
Continuation of Schedule —__
(Enter letter of schedule you are continuing.)
Item Description Unit value Alternate Value at date of death
number For securities, give CUSIP number, if available. ehBorEony) | Valuation date Alternate value | oy amount deductible
1

TOTAL. (Carry forward to main schedule.).

See instructions on next page.

Continuation Schedule—Page 34


Instructions for Continuation Schedule

The Continuation Schedule on page 34 provides a uniform format for listing additional assets
from Schedules A, B, C, D, E, F, G, H, and | and additional deductions from Schedules J, K, L, M,
and O. Use the Continuation Schedule when you need to list more assets or deductions than you
have room for on one of the main schedules.

Use a separate Continuation Schedule for each main schedule you are continuing. For each
schedule of Form 706, you may use as many Continuation Schedules as needed to list all the
assets or deductions to be reported. Do not combine assets or deductions from different
schedules on one Continuation Schedule. Since there is only one Continuation Schedule in this
package, you should make copies of the schedule before completing it if you expect to need
more than one.

Enter the letter of the schedule you are continuing in the space provided at the top of the
Continuation Schedule. Complete the rest of the Continuation Schedule as explained in the
instructions for the schedule you are continuing. Use the Unit value column only if you are
continuing Schedules B or E. For all other schedules, you may use the space under the Unit
value column to continue your description.

To continue Schedule E, Part 2, you should enter the Percentage includible in the Alternate
valuation date column of the Continuation Schedule.

To continue Schedule K, you should use the Alternate valuation date and Alternate value
columns of the Continuation Schedule as Amount unpaid to date and Amount in contest
columns, respectively.

To continue Schedules J, L, and M, you should use the Alternate valuation date and Alternate
value columns of the Continuation Schedule to continue your description of the deductions. You
should enter the amount of each deduction in the amount deductible column of the
Continuation Schedule. Use a separate Continuation Schedule for each part of Schedule M. Do
not combine QTIP and non-QTIP property on the same Continuation Schedule.

To continue Schedule O, you should use the space under the Alternate valuation date and
Alternate value columns of the Continuation Schedule to provide the Character of institution
information required on Schedule O. You should enter the amount of each deduction in the
amount deductible column of the Continuation Schedule.

Carry the total from the Continuation Schedule(s) forward to the appropriate line of the main
schedule.

rU.S. GOVERNMENT PRINTING OFFICE: 1989: 247-278 Continuation Schedule—Page 35


Form 706 (Rev. 10-88)

Estate of:
SCHEDULE L—Net Losses During Administration and
Expenses Incurred in Administering Property Not Subject to Claims
Item Net losses during administration ‘Amount
number (Note: Do not deduct losses claimed on a Federal income tax return.)
1
Total from continuation schedule(s) (or additional sheet(s)) attached to this schedule .
TOTAL. (Also enter on Part 5, Recapitulation, page 3, at item 16.)
Item Expenses incurred in administering property not subject to claims
number (Indicate whether estimated, agreed upon, or paid.) Amount
1

Total from continuation schedule(s) (or additional sheet(s)) attached to this schedule

TOTAL, (Aliso enter on Part 5, Recapitulation, page 3, at item 17.)

(if more space is needed, attach the continuation schedule from the end of this package or additional sheets of the same size.)
(The instructions to Schedule L are in the separate instructions.) Schedule L —Page 24


Form 706 (Rev. 10-88)

Part 4.—General Information (continued)

Please check the “Yes” or “No” box for each question.

6

Does the gross estate contain any section 2044 property (see instructions)? .

7a

Have Federal gift tax returns ever been filed? . .
If “Yes,” please attach copies of the returns, if available, and furnish the following information:

7b

Period(s) covered 7c Internal Revenue office(s) where filed

Ifyou answer “Yes” to any of questions 8-16, you must attach additional information as described in the instructions.

8a_Was there any insurance on the decedent's life that is not included on the return as part of the gross estate?
b Did the decedent own any insurance on the life of another that is not included in the gross estate? ee
9 Did the decedent at the time of death own any property as a joint tenant with right of survivorship in which (1) one or more of the other
joint tenants was someone other than the decedent's spouse, and (2) less than the full value of the Property I is included on the return as
part of the gross estate? If “Yes,” you must complete and attach ScheduleE. . . . Loe
10 Did the decedent, at the time of death, own any interest in a 8 partnership or unincorporated business or rany stock in an inactive or
closely held corporation? . : .
lla Did the decedent make any transfer described in section 2035, 2036, 2037 or 2038 (see th the instructions for Schedule eat If “Yes,”
you must complete and attach Schedule G .
b If “Yes,” was it a valuation freeze subject to section 2036(c)? . .
12. Were there in existence at the time of the decedent's death: VWI}
‘a Any trusts created by the decedent during his or her lifetime? . . Le
b Any trusts not created by the decedent under which the decedent possessed any power, 1. beneficial interest, or trusteeship?_.
13 Did the decedent ever possess, exercise, or release any general power of appointment? If “Yes,” you must complete and attach Schedule ry
14 Was the marital deduction computed under the transitional rule of Public Law 97-34, section 403(e)(3) (Economic Recovery Tax Act of 1981)?
If “Yes,” attach a separate computation of the marital deduction, enter the amount on item 18 of the Recapitulation, and note on item
18 “computation attached.”
15 Was the decedent, immediately before death, receiving an annuity described in the “General” ‘Paragraph of the instructions for
Schedule |? If “Yes,” you must complete and attach Schedule... . . 1. fe
16 Did the decedent have a total “excess retirement accumulation” (as defined in section 4980A(d)) in auslifed employer plants) and

individual retirement plan(s)? If “Yes,” you must attach Schedule $ (Form 706) (see instructions)

Part 5.—Recapitulation

nee Gross estate Alternate value Value at date of death
1 _ | Schedule A—Real Estate
2 Schedule B—Stocks and Bonds
3 | Schedule C—Mortgages, Notes, and Cash .
4 | Schedule D—insurance on the Decedent's Life (attach Form(s) 712)
5 _| Schedule E—Jointly Owned Property (attach Form(s) 712 for life insurance)
6 | Schedule F—Other Miscellaneous Property (attach Form(s) 712 for life insurance)
7 Schedule G—Transfers During Decedent's Life (attach Form(s) 712 for life insurance)
8 _ | Schedule H—Powers of Appointment.
9 | Schedule Annuities...
10 Total gross estate (add items 1 through 9). Enter Tere ‘ando on Tine T of the Tax Computation!
alee. Deductions Amount
il Schedule J—Funeral Expenses and Expenses Incurred in Administering Property Subject to Claims .
12 Schedule K—Debts of the Decedent .
13 | Schedule K—Mortgages and Liens
14 Total of items 11 through 13
15 _| Allowable amount of deductions from item 14 (see the instructions for item 15 of the Recapitulation)
16 Schedule L—Net Losses During Administration .
17 Schedule L—Expenses Incurred in Administering Property Not t Subject to 5 Claims
18 Schedule M—Bequests, etc., to Surviving Spouse
19 Schedule O—Charitable, Public, and Similar Gifts and Bequests .
20 Total of items 15 through 19—If you dia not complete Schedule N, skip lines 21- 24 and enter the line 20amount o on line 25.
21 | Intermediate taxable estate (subtract item 20 from item 10) . ee
22 Maximum ESOP deduction (from Table Dinthe Instructions). . 2... 1 + ee ew
23 Enter the amount from Schedule N, line 8, .
24 Allowable ESOP deduction—enter the lesser of item 22 or 23. : .
25 Total allowable deductions (add items 20 and 24). Enter here and on Tine. 2 ofthe Tax Computation :

Page 3


Form 706 (Rev. 10-88)

Estate of:
SCHEDULE D—Insurance on the Decedent's Life
You must attach a Form 712 for each policy.
ner, Description ate Alternate value _| Value at date of death
1

Total from continuation schedule(s) (or additional sheet(s)) attached to this schedule .

TOTAL. (Also enter on Part 5, Recapitulation, page 3, at item 4.) .

(If more space is needed, attach the continuation schedule from the end of this package or r additional sheets of the same size.)

Schedule D—Page 13


Form 706 (Rev. 10-88)

Estate of:

SCHEDULE E—Jointly Owned Property

(ityou elect section 2032A valuation, you must complete Schedule E and Schedule A-1.)

PART 1.— Qualified Joint Interests—interests Held by the Decedent and His or Her Spouse as the Only Joint Tenants
(Section 2040(b)(2))

Item
number

Description
For securities, give CUSIP number, if available.

Alternate
valuation date

Alternate value —_| Value at date of death

Total from continuation schedule(s) (or additional sheet(s)) attached to this schedule

la_Totals

la

1b Amounts included in gross estate (one-half of line 1a)

.lb

PART 2.—All Other Joint Interests

2a State the name and address of each surviving co-tenant. If there are more than three surviving co-tenants, list the additional co-tenants on an

attached sheet.
Name ‘Address (number and street, city, state, and ZIP code)
A.
B.
c.
Enter Description i i
Item i Percentage Includible Includible
letter for (including alternate valuation date if any)
number | ¢ottenant For securities, give CUSIP number, f avaiable. includible alternate value —_| value at date of death
Total from continuation schedule(s) (or additional sheet(s)) attached to this schedule _. .
2b Total other joint interests 2b

3 Total includible joint interests (add lines 1b and 2b). Also enter on Part 5, Recapitulation, page 3, at item 5

(f more space is needed, attach the continuation schedule from the end of this package or additional sheets of the same size.)

Schedule E—Page 15


Form 706 (Rev. 10-88)

Estate of:

Part 3.—Elections by the Executor

Please check the “Yes” or “No” box for each question. Yes | No
1 _Doyouelect alternate valuation? .

2 Doyouelect specialuse valuation? . . . ...
lf “Yes,” you must complete and attach Schedule A-i

3 Doyou elect to pay the taxes in installments as described in section 6166? .
If “Yes,” you must attach the additional information described in the instructions.

4 _Do you elect to postpone the part of the taxes attributable to a reversionary or remainder interest as described in section 6163?

5 Doyouelect to have part or all of the estate tax liability assumed by an Employee Stock Ownership Plan (ESOP) as described in section 2210?

If “Yes,” enter the amount of tax assumed bythe ESOPherem$ and attach the supplemental statements
described in the instructions.

Part 4.—General Information Note: Please attach the necessary supplemental documents. You must attach the death certificate.

Authorization to receive confidential tax information under Regulations section 601.502(c)(3)(ii), to act as the estate's representative before the
Internat Revenue Service, and to make written or oral presentations on behalf of the estate if return prepared by an attorney, accountant, or enrolled
agent for the executor:

Name of representative (print or type) State Address (number and street, city, state, and ZIP code)

Tdeclare that | am the attorney /accountant/enrolled agent (strike out the words that do not apply) for the executor and prepared this return for the
executor. | am not under suspension or cisbatment from practice before the Internal Revenue Service and am qualified to practice in the state shown
above.

Signature CAF Number | Date Telephone Number

1 Death certificate number and issuing authority (attach a copy of the death certificate to this return).

2 Decedent's business or occupation. If retired, check here > [] and state decedent's former business or occupation.

3 Marital status of the decedent at time of death:
O Married
1 Widow or widower—Name, SSN and date of death of deceased spouse P

O Single
CO Legally separated
[_Divorced—Date divorce decree becatne final >
4a_ Surviving spouse’s name 4b Social security number 4c Amount received (see instructions)

5 _ Individuals (other than the surviving spouse), trusts, or other estates who receive benefits from the estate (do not include charitable beneficiaries
Shown in Schedule O) (see instructions) For Privacy Act Notice applicable to individual beneficiaries only, see the Instructions for Form 1040.

Name of individual, trust or estate receiving $5,000 or more Identifying number Relationship to decedent ‘Amount (see instructions)

All unascertainable beneficiaries and those who receive lessthan $5,000...» - - - - + 7
(Continued on next page) Page 2



Instructions for Fiduciary
Purpose of Schedule R-1

Code section 2603(a)(2) provides that the Generation-Skipping Transfer (GST) tax imposed on a direct skip from a trust is to
be paid by the trustee. Schedule R-1 (Form 706) serves as a payment voucher for the trustee to remit the GST tax to the IRS.
See the instructions for Form 706 as to when a direct skip is from a trust.

How To Pay the GST Tax

The executor will compute the GST tax, complete Schedule R-1, and give you two copies. You should pay the GST tax using
one copy and retain the other copy for your records.

The GST tax due is the amount shown on line 8. Make yout check or money ordet for this amount payable to “Internal
Revenue Service,” write “GST tax” and the trust’s EIN on it, arid send it arid one copy of the completed Schedule R-1 to the
IRS Service Center where the Form 706 was filed, as shown on the frottt of the Schedule R-1.

When To Pay the GST Tax

The GST tax is due and payable 9 months after the decedent’s date of death (entered by the executor on Schedule R-1).
Interest will be charged on any GST taxes unpaid as of that date. However, you have an automatic extension of tite to file
Schedule R-1 and pay the GST tax due until 2 months after the due date (with extensions) for filing the decedent's Schedule
R, Form 706. This Schedule R, Form 706 due date is entered by the executor on Schedule R-1. Thus, while interest will be
due on unpaid GST taxes, no penalties will be charged if you file Schedule R-1 by this extended due date.

Signature
You, as fiduciary, must sign the Schedule R-1 in the space provided.

Schedule R-1 (Form 706)—Page 33


Form 706 (Rev. 10-88)

Instructions for Schedule J.—

Funeral Expenses and Expenses Incurred in
Administering Property Subject to Claims
General.— You must complete and file Schedule J if you
claim a deduction on item 11 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.

Funeral Expenses.—ltemize funeral expenses on line A.
Deduct from the expenses any amounts that were
reimbursed, such as death benefits payable by the Social
Security Administration and the Veterans Administration.
Executors’ Commissions.—When you file the return, you
may deduct commissions which have actually been paid to
you or which you expect will be paid. You may not deduct
commissions if none will be collected. If the amount of the
commissions has not been fixed by decree of the proper
court, the deduction will be allowed on the final
examination of the return, provided that:

@ The District Director is reasonably satisfied that the
commissions claimed will be paid;

@ The amount entered as a deduction is within the
amount allowable by the laws of the jurisdiction where
the estate is being administered;

e@ Itis in accordance with the usually accepted practice in

that jurisdiction for estates of similar size and character.

If you have not been paid the commissions claimed at the
time of the final examination of the return, you must
support the amount you deducted with an affidavit or
statement signed under the penalties of perjury that the
amount has been agreed upon and will be paid.

You may not deduct a bequest or devise made to you
instead of commissions. If, however, the decedent fixed by
will the compensation payable to you for services to be
rendered in the administration of the estate, you may
deduct this amount to the extent it is not more than the
compensation allowable by the local law or practice.

Do not deduct on this schedule amounts paid as
trustees’ commissions whether received by you acting in
the capacity of a trustee or by a separate trustee. If such
amounts were paid in administering property not subject to
claims, deduct them on Schedule L.

Note: Executors’ commissions are taxable income to the
executors. Therefore, be sure to include them as income on
your individual income tax return.

Attorney Fees.—Enter the amount of attorney fees that
have actually been paid or which you reasonably expect to
be paid. If on the final examination of the return the fees
claimed have not been awarded by the proper court and
paid, the deduction will be allowed provided the District
Director is reasonably satisfied that the amount claimed
will be paid and that it does not exceed a reasonable
payment for the services performed, taking into account
the size and character of the estate and the local law and
practice. If the fees claimed have not been paid at the time
of final examination of the return, the amount deducted
must be supported by an affidavit, or statement signed
under the penalties of perjury, by the executor or the
attorney stating that the amount has been agreed upon and
will be paid.

Do not deduct attorney fees incidental to litigation
incurred by the beneficiaries. These expenses are charged
against the beneficiaries personally and are not
administration expenses authorized by the Code.

Schedule J—Page 22






Form 706 (Rev. 10-88)

Estate of:

SCHEDULE M—Bequests, etc., to Surviving Spouse

Yes | No

1 Did any property pass to the surviving spouse as a result of a qualified disclaimer? .
If “Yes,” attach a copy of the written disclaimer required by section 2518(b).

2 Terminable Interest (QTIP) Marital Deduction.—Check here > [_] if you elect to claim a marital deduction for qualified terminable
interest property (QTIP) under section 2056(b)(7). You must complete Part 2 of Schedule M.

Part 1.—Property Interests Which Are Not Subject to a QTIP Election

Item

number Description of property interests passing to surviving spouse Value

1

Total from continuation schedule(s) (or additional sheet(s)) attached to this schedule .

Total value of property interests not subject to a QTIP election (enter here and on line 1 of Part 3 on the next page)

(if more space is needed, attach the continuation schedule from the end of this package or additional sheets of the same size.)
(The instructions to Schedule M are in the separate instructions.) Schedule M—Page 25


Form 706 (Rev. 10-88)

Estate of:
SCHEDULE C—Mortgages, Notes, and Cash
(For jointly owned property that must be disclosed on Schedule E, see the Instructions for Schedule E.)
ner Description vahiternate Alternate value _| Value at date of death
1

Total from continuation schedule(s) (or additional sheet(s)) attached to this schedule .

TOTAL. (Also enter on Part 5, Recapitulation, page 3, at item 3.) .

(If more-space is needed, attach the continuation schedule from the end of this package or additional sheets of the same size.)

Schedule C—Page 11


Form 706 (Rev. 10-88)

Instructions for Schedule D.— Insurance on
the Decedent's Life

If 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:
e Insurance on the decedent's life receivable by or for
the benefit of the estate; and
e 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 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 which 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 beneficiaries 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 incidents of ownership,
exercisable either alone or in conjunction with any person.
Incidents of ownership in a policy include:
@ The right of the insured or estate to its economic
benefits;
© The power to change the beneficiary;

e The power to surrender or cancel the policy;

e The power to assign the policy or to revoke an
assignment;

© The power to pledge the policy for a loan;

e The power to obtain from the insurer a loan against the
surrender value of the policy;

e Areversionary 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 to Schedule G for a description
of these sections.)

Completing the Schedule
You must list every policy of insurance on the life of the
decedent, whether or not it is included in the gross estate.

Under ‘‘Description” list:

e Name of the insurance company

e Number of the policy
For every policy of life insurance listed on the schedule,

you must request a statement on Form 712, Life Insurance
Statement, from the company which issued the policy.
Attach the Form 712 to the back of Schedule D.

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, you must explain why they were not included.

Schedule D—Page 14