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or estate beneficiaries, indicate

family holds the entire stock issue. As a

Part 4—General

“TRUST” or “ESTATE.”

result, little, if any, trading of the stock

takes place. There is, therefore, no

Amount. Enter the amount actually

Information (Pages 2 and

established market for the stock, and

distributed (or to be distributed) to each

those sales that do occur are at

3 of Form 706)

beneficiary including transfers during

irregular intervals and seldom reflect all

the decedent’s life from Schedule G

the elements of a representative

required to be included in the gross

Authorization

transaction as defined by the term “fair

estate. The value to be entered need

Completing the authorization on page 2

market value” (FMV).

not be exact. A reasonable estimate is

of Form 706 will authorize one attorney,

sufficient. For example, where precise

Line 12. Trusts

accountant, or enrolled agent to

values cannot readily be determined, as

represent the estate and receive

If you answered “Yes” on either line

with certain future interests, a

confidential tax information, but will not

12a or line 12b, you must attach a copy

reasonable approximation should be

authorize the representative to enter

of the trust instrument for each trust.

entered. The total of these distributions

into closing agreements for the estate.

should approximate the amount of

You must complete Schedule G if

Note. If you wish to represent the

gross estate reduced by funeral and

you answered “Yes” on line 12a and

estate, you must complete and sign the

administrative expenses, debts and

Schedule F if you answered “Yes” on

authorization.

mortgages, bequests to surviving

line 12b.

spouse, charitable bequests, and any

If you wish to authorize persons

Line 14. Foreign Accounts

federal and state estate and GST taxes

other than attorneys, accountants, and

paid (or payable) relating to the benefits

Check “Yes” on line 14 if the decedent

enrolled agents, or if you wish to

received by the beneficiaries listed on

at the time of death had an interest in

authorize more than one person, to

lines 4 and 5.

or signature or other authority over a

receive confidential information or

financial account in a foreign country,

represent the estate, you must

All distributions of less than $5,000

such as a bank account, securities

complete and attach Form 2848, Power

to specific beneficiaries may be

account, an offshore trust, or other

of Attorney and Declaration of

included with distributions to

financial account.

Representative. You must also

unascertainable beneficiaries on the

complete and attach Form 2848 if you

line provided.

wish to authorize someone to enter into

Part 5—Recapitulation

Line 6. Section 2044 Property

closing agreements for the estate.

Filing a completed Form 2848 with this

If you answered “Yes,” these assets

(Page 3 of Form 706)

return may expedite processing of the

must be shown on Schedule F.

Form 706.

Section 2044 property is property for

Gross Estate

If you wish only to authorize

which a previous section 2056(b)(7)

Items 1 through 10. You must make

someone to inspect and/or receive

election (QTIP election) has been

an entry in each of items 1 through 9.

confidential tax information (but not to

made, or for which a similar gift tax

represent you before the IRS),

election (section 2523) has been made.

If the gross estate does not contain

complete and file Form 8821, Tax

For more information, see the

any assets of the type specified by a

Information Authorization.

instructions on the back of Schedule F.

given item, enter zero for that item.

Entering zero for any of items 1 through

Line 4

Line 8. Insurance Not

9 is a statement by the executor, made

Complete line 4 whether or not there is

Included in the Gross Estate

under penalties of perjury, that the

a surviving spouse and whether or not

gross estate does not contain any

If you answered “Yes” to either 8a or

the surviving spouse received any

includible assets covered by that item.

8b, you must complete and attach

benefits from the estate. If there was no

Schedule D and attach a Form 712,

Do not enter any amounts in the

surviving spouse on the date of

Life Insurance Statement, for each

“Alternate value” column unless you

decedent’s death, enter “None” in line

policy and an explanation of why the

elected alternate valuation on line 1 of

4a and leave lines 4b and 4c blank.

policy or its proceeds are not includible

Part 3 — Elections by the Executor on

The value entered in line 4c need not

in the gross estate.

page 2 of the Form 706.

be exact. See the instructions for

Which schedules to attach for items

“Amount” under line 5 below.

Line 10. Partnership

1 through 9. You must attach:

•

Interests and Stock in Close

Line 5

Schedule F to the return and answer

Corporations

its questions even if you report no

Name. Enter the name of each

assets on it;

If you answered “Yes” on line 10a, you

individual, trust, or estate who received

•

Schedules A, B, and C if the gross

must include full details for partnerships

(or will receive) benefits of $5,000 or

estate includes any (1) Real Estate, (2)

(including family limited partnerships),

more from the estate directly as an heir,

Stocks and Bonds, or (3) Mortgages,

unincorporated businesses, and limited

next-of-kin, devisee, or legatee; or

Notes, and Cash, respectively;

liability companies on Schedule F

indirectly (for example, as beneficiary of

•

Schedule D if the gross estate

(Schedule E if the partnership interest

an annuity or insurance policy,

includes any life insurance or if you

is jointly owned). You must also include

shareholder of a corporation, or partner

answered “Yes” to question 8a of Part

full details for fractional interests in real

of a partnership that is an heir, etc.).

4 — General Information;

estate on Schedule A, and full details

•

Identifying number. Enter the SSN of

Schedule E if the gross estate

for stock of inactive or close

each individual beneficiary listed. If the

contains any jointly owned property or if

corporations on Schedule B.

number is unknown, or the individual

you answered “Yes” to question 9 of

Value these interests using the rules

has no number, please indicate

Part 4;

•

of Regulations section 20.2031-2

“unknown” or “none.” For trusts and

Schedule G if the decedent made

(stocks) or 20.2031-3 (other business

other estates, enter the EIN.

any of the lifetime transfers to be listed

interests).

Relationship. For each individual

on that schedule or if you answered

beneficiary, enter the relationship (if

A close corporation is a corporation

“Yes” to question 11 or 12a of Part 4;

•

known) to the decedent by reason of

whose shares are owned by a limited

Schedule H if you answered “Yes” to

blood, marriage, or adoption. For trust

number of shareholders. Often, one

question 13 of Part 4; and

-12-

Part Instructions

Instructions For Form 706 - United States Estate (And Generation-Skipping Transfer) Tax Return - 2008 Page 12

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