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decedent. However, see Annuities

1982) and the decedent irrevocably

(if applicable). For the rules to

Under Approved Plans below.

elected the form of the benefit before

determine whether the decedent made

4. A contract or agreement entered

January 1, 1983 or

contributions to the plan, see

•

into by the decedent and the

The decedent separated from service

Regulations section 20.2039.

decedent’s employer under which at the

before January 1, 1983, and did not

IRAs and retirement bonds. The

decedent’s death, before retirement, or

change the form of benefit before

following plans are approved plans for

before the expiration of a stated period

death.

the exclusion rules:

of time, an annuity was payable to a

Approved Plans

f. An individual retirement account

designated beneficiary, if surviving the

described in section 408(a),

Approved plans may be separated into

decedent. However, see Annuities

g. An individual retirement annuity

two categories:

Under Approved Plans below.

•

described in section 408(b), or

Pension, profit-sharing, stock bonus,

5. A contract or agreement under

and other similar plans and

which the decedent immediately before

h. A retirement bond described in

•

Individual retirement arrangements

death was receiving, or was entitled to

section 409(a) (before its repeal by P.L.

(IRAs), and retirement bonds.

receive, an annuity for a stated period

98-369).

of time, with the annuity to continue to a

Different exclusion rules apply to the

Exclusion rules for IRAs and

designated beneficiary, surviving the

two categories of plans.

retirement bonds. These plans are

decedent, upon the decedent’s death

approved plans only if they provide for

Pension, etc., plans. The following

and before the expiration of that period

a series of substantially equal periodic

plans are approved plans for the

of time.

payments made to a beneficiary for life,

exclusion rules:

6. An annuity contract or other

or over a period of at least 36 months

a. An employees’ trust (or under a

arrangement providing for a series of

after the date of the decedent’s death.

contract purchased by an employees’

substantially equal periodic payments

Subject to the $100,000 limitation, if

trust) forming part of a pension, stock

to be made to a beneficiary for life or

applicable, if an annuity under a “plan”

bonus, or profit-sharing plan that met all

over a period of at least 36 months

described in (f) through (h) above is

the requirements of section 401(a),

after the date of the decedent’s death

receivable by a beneficiary other than

either at the time of the decedent’s

under an individual retirement account,

the executor, the entire value of the

separation from employment (whether

annuity, or bond as described in section

annuity is excludable from the gross

by death or otherwise) or at the time of

2039(e) (before its repeal by P.L.

estate even if the decedent made a

the termination of the plan (if earlier);

98-369).

contribution under the plan.

b. A retirement annuity contract

Payable to the decedent. An annuity

However, if any payment to or for an

purchased by the employer (but not by

or other payment was payable to the

account or annuity described in

an employees’ trust) under a plan that,

decedent if, at the time of death, the

paragraph (f), (g), or (h) above was not

at the time of the decedent’s separation

decedent was in fact receiving an

allowable as an income tax deduction

from employment (by death or

annuity or other payment, with or

under section 219 (and was not a

otherwise), or at the time of the

without an enforceable right to have the

rollover contribution as described in

termination of the plan (if earlier), was a

payments continued.

section 2039(e) before its repeal by

plan described in section 403(a);

P.L. 98-369), include in the gross

Right to receive an annuity. The

c. A retirement annuity contract

estate on this schedule that proportion

decedent had the right to receive an

purchased for an employee by an

of the value of the annuity which the

annuity or other payment if,

employer that is an organization

amount not allowable as a deduction

immediately before death, the decedent

referred to in section 170(b)(1)(A)(ii) or

under section 219 and not a rollover

had an enforceable right to receive

(vi), or that is a religious organization

contribution bears to the total amount

payments at some time in the future,

(other than a trust), and that is exempt

paid to or for such account or annuity.

whether or not at the time of death the

from tax under section 501(a);

For more information, see Regulations

decedent had a present right to receive

d. Chapter 73 of Title 10 of the

section 20.2039-5.

payments.

United States Code; or

Rules applicable to all approved

Annuities Under Approved

e. A bond purchase plan described

plans. The following rules apply to all

Plans

in section 405 (before its repeal by P.L.

approved plans described in

98-369, effective for obligations issued

paragraphs (a) through (h) above.

The following rules relate to whether

after December 31, 1983).

part or all of an otherwise includible

If any part of an annuity under a

annuity may be excluded. These rules

Exclusion rules for pension, etc.,

“plan” described in (a) through (h)

have been repealed and apply only if

plans. If an annuity under an

above is receivable by the executor, it

“approved plan” described in (a)

the decedent either:

is generally includible in the gross

•

On December 31, 1984, was both a

through (e) above is receivable by a

estate on this schedule to the extent

beneficiary other than the executor and

participant in the plan and in pay status

that it is receivable by the executor in

(for example, had received at least one

the decedent made no contributions

that capacity. In general, the annuity is

benefit payment on or before December

under the plan toward the cost, no part

receivable by the executor if it is to be

of the value of the annuity, subject to

31, 1984) and had irrevocably elected

paid to the executor or if there is an

the form of the benefit before July 18,

the $100,000 limitation (if applicable), is

agreement (expressed or implied) that it

1984 or

includible in the gross estate.

will be applied by the beneficiary for the

•

Had separated from service before

benefit of the estate (such as in

If the decedent made a contribution

January 1, 1985, and did not change

discharge of the estate’s liability for

under a plan described in (a) through

the form of benefit before death.

death taxes or debts of the decedent,

(e) above toward the cost, include in

etc.) or that its distribution will be

The amount excluded cannot exceed

the gross estate on this schedule that

governed to any extent by the terms of

$100,000 unless either of the following

proportion of the value of the annuity

the decedent’s will or the laws of

conditions is met:

which the amount of the decedent’s

•

descent and distribution.

On December 31, 1982, the

contribution under the plan bears to the

decedent was both a participant in the

total amount of all contributions under

If data available to you does not

plan and in pay status (for example,

the plan. The remaining value of the

indicate whether the plan satisfies the

had received at least one benefit

annuity is excludable from the gross

requirements of section 401(a), 403(a),

payment on or before December 31,

estate subject to the $100,000 limitation

408(a), 408(b), or 409(a), you may

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Instructions for Schedules

Instructions For Form 706 - United States Estate (And Generation-Skipping Transfer) Tax Return - 2008 Page 18

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