Looking for a Form 706 Templates? Download it for free!

transferred by the decedent during life

occurs because of the death of the

Line 2. Qualified Disclaimer

or by will to or for the use of any of the

individual or in any other way. The

The charitable deduction is allowed for

following:

termination must occur within the period

•

amounts that are transferred to

The United States, a state, a political

of time (including extensions) for filing

charitable organizations as a result of a

subdivision of a state, or the District of

the decedent’s estate tax return and

qualified disclaimer. To be a qualified

Columbia, for exclusively public

before the power has been exercised.

disclaimer, a refusal to accept an

purposes;

interest in property must meet the

•

The deduction is limited to the

Any corporation or association

conditions of section 2518. These are

amount actually available for charitable

organized and operated exclusively for

explained in Regulations sections

uses. Therefore, if under the terms of a

religious, charitable, scientific, literary,

25.2518-1 through 25.2518-3. If

will or the provisions of local law, or for

or educational purposes, including the

property passes to a charitable

any other reason, the federal estate

encouragement of art, or to foster

beneficiary as the result of a qualified

tax, the federal GST tax, or any other

national or international amateur sports

disclaimer, check the “Yes” box on line

estate, GST, succession, legacy, or

competition (but only if none of its

2 and attach a copy of the written

inheritance tax is payable in whole or in

activities involve providing athletic

disclaimer required by section 2518(b).

part out of any bequest, legacy, or

facilities or equipment, unless the

devise that would otherwise be allowed

organization is a qualified amateur

Attachments

as a charitable deduction, the amount

sports organization) and the prevention

you may deduct is the amount of the

If the charitable transfer was made by

of cruelty to children and animals, as

bequest, legacy, or devise reduced by

will, attach a certified copy of the order

long as no part of the net earnings

the total amount of the taxes.

admitting the will to probate, in addition

benefits any private individual and no

to the copy of the will. If the charitable

substantial activity is undertaken to

If you elected to make installment

transfer was made by any other written

carry on propaganda, or otherwise

payments of the estate tax, and the

instrument, attach a copy. If the

attempt to influence legislation or

interest is payable out of property

instrument is of record, the copy should

participate in any political campaign on

transferred to charity, you must reduce

be certified; if not, the copy should be

behalf of any candidate for public office;

the charitable deduction by an estimate

•

verified.

A trustee or a fraternal society, order

of the maximum amount of interest that

or association operating under the

will be paid on the deferred tax.

Value

lodge system, if the transferred property

is to be used exclusively for religious,

For split-interest trusts (or pooled

The valuation dates used in

charitable, scientific, literary, or

income funds), enter in the “Amount”

determining the value of the gross

educational purposes, or for the

column the amount treated as passing

estate apply also on Schedule O.

prevention of cruelty to children or

to the charity. Do not enter the entire

animals, and no substantial activity is

amount that passes to the trust (fund).

Schedule P—Credit for

undertaken to carry on propaganda or

If you are deducting the value of the

Foreign Death Taxes

otherwise attempt to influence

residue or a part of the residue passing

legislation, or participate in any political

to charity under the decedent’s will,

campaign on behalf of any candidate

General

attach a copy of the computation

for public office;

If you claim a credit on line 13 of Part

•

showing how you determined the value,

Any veterans organization

2 — Tax Computation, you must

including any reduction for the taxes

incorporated by an Act of Congress or

complete Schedule P and file it with the

described above.

any of its departments, local chapters,

return. You must attach Form(s)

or posts, for which none of the net

Also include:

706-CE, Certificate of Payment of

•

earnings benefits any private individual;

A statement that shows the values of

Foreign Death Tax, to support any

all specific and general legacies or

credit you claim.

•

A foreign government or its political

devises for both charitable and

subdivision when the use of such

If the foreign government refuses to

noncharitable uses. For each legacy or

property is limited exclusively to

certify Form 706-CE, you must file it

devise, indicate the paragraph or

charitable purposes.

directly with the Internal Revenue

section of the decedent’s will or codicil

Service as instructed on the Form

that applies. If legacies are made to

For this purpose, certain Indian tribal

706-CE. See Form 706-CE for

each member of a class (for example,

governments are treated as states and

instructions on how to complete the

$1,000 to each of the decedent’s

transfers to them qualify as deductible

form and for a description of the items

employees), show only the number of

charitable contributions. See Rev. Proc.

that must be attached to the form when

each class and the total value of

2002-64, 2002-42 I.R.B. 717, as

the foreign government refuses to

property they received;

modified and supplemented by

•

certify it.

The date of birth of all life tenants or

subsequent revenue procedures, for a

annuitants, the length of whose lives

list of qualifying Indian tribal

The credit for foreign death taxes is

may affect the value of the interest

governments.

allowable only if the decedent was a

passing to charity under the decedent’s

citizen or resident of the United States.

You may also claim a charitable

will;

However, see section 2053(d) and the

contribution deduction for a qualifying

•

A statement showing the value of all

related regulations for exceptions and

conservation easement granted after

property that is included in the

limitations if the executor has elected,

the decedent’s death under the

decedent’s gross estate but does not

in certain cases, to deduct these taxes

provisions of section 2031(c)(9).

pass under the will, such as transfers,

from the value of the gross estate. For

jointly owned property that passed to

The charitable deduction is allowed

a resident, not a citizen, who was a

the survivor on decedent’s death, and

for amounts that are transferred to

citizen or subject of a foreign country

insurance payable to specific

charitable organizations as a result of

for which the President has issued a

beneficiaries; and

either a qualified disclaimer (see Line 2.

proclamation under section 2014(h), the

•

Qualified Disclaimer below) or the

Any other important information such

credit is allowable only if the country of

complete termination of a power to

as that relating to any claim, not arising

which the decedent was a national

consume, invade, or appropriate

under the will, to any part of the estate

allows a similar credit to decedents who

property for the benefit of an individual.

(that is, a spouse claiming dower or

were U.S. citizens residing in that

It does not matter whether termination

curtesy, or similar rights).

country.

-21-

Instructions for Schedules

Instructions For Form 706 - United States Estate (And Generation-Skipping Transfer) Tax Return - 2008 Page 21

Related Articles

Related forms

Related Categories