Part IV. Additional Names and Signatures for

Part III If there is not enough space in Part III, use Part IV to enter the names and signatures of any additional qualifying heirs and/or other interested parties. Attach additional copies of Part IV, if necessary.

Checklist for Section 2032A Election

Caution: When making the special-use valuation election on Schedule T (Form 706), use this checklist to ensure that you are providing everything necessary to make a valid election.

To have a valid special-use valuation election under section 2032A, you must file, in addition to the federal estate tax return, (a) a notice of election (Schedule T (Form 706), Part II), and (b) a fully executed agreement (Schedule T (Form 706), Part III, and Part IV, if applicable). You must include certain information in the notice of election. To ensure that the notice of election includes all of the information required for a valid election, use the following checklist. The checklist is for your use only. Do not file it with the return.

Does the notice of election include the decedent’s name and SSN as they appear on the estate tax return?

Does the notice of election include the relevant qualified use of the property to be specially valued?

Does the notice of election describe the items of real property shown on the estate tax return that are to be specially valued and identify the property by the Form 706 schedule, line number, and item number?

Does the notice of election include the FMV of the real property to be specially valued and also include its value based on the qualified use (determined without the adjustments provided in section 2032A(b)(3)(B))?

Does the notice of election include the adjusted value (as defined in section 2032A(b)(3)(B)) of (a) all real property that both passes from the decedent and is used in a qualified use, without regard to whether it is to be specially valued; and (b) all real property to be specially valued?

Does the notice of election include (a) the items of personal property shown on the estate tax return that pass from the decedent to a qualified heir, and that are used in qualified use; and (b) the total value of such personal property adjusted under section 2032A(b)(3)(B)?

Does the notice of election include the adjusted value of the gross estate? (See section 2032A(b)(3) (A).)

Does the notice of election include the method used to determine the special-use value?

Does the notice of election include copies of written appraisals of the FMV of the real property?

Does the notice of election include a statement that the decedent and/or a member of the decedent’s family has owned all of the specially valued property for at least 5 years of the 8 years immediately preceding the date of the decedent’s death?

Does the notice of election include a statement as to whether there were any periods during the 8-year period preceding the decedent’s date of death during which the decedent or a member of the decedent’s family did not (a) own the property to be specially valued, (b) use it in a qualified use, or (c) materially participate in the operation of the farm or other business? (See section 2032A(e)(6).)

Does the notice of election include, for each item of specially valued property, the name of every person who has an interest in that item of specially valued property and the following information about each such person: (a) the person’s address, (b) the person’s TIN, (c) the person’s relationship to the decedent, and (d) the value of the property interest passing to that person based on both FMV and qualified use?

Does the notice of election include affidavits describing the activities constituting material participation and the identities of the material participants?

Does the notice of election include a legal description of each item of specially valued property? ( Note: The legal description must be the complete legal description of the property. An abbreviated description is not sufficient.)

(In the case of an election made for qualified woodlands, the information included in the notice of election must include the reason for entitlement to the woodlands election.)

Any election made under section 2032A will not be valid unless a properly executed agreement (Schedule T (Form 706), Part III, and Part IV, if applicable) is filed with the estate tax return. To ensure that the agreement satisfies the requirements for a valid election, use the following checklist. The checklist is for your use only. Do not file it with the return.

Instructions for Form 706 (Rev. 7-2026) 27

Has the agreement been signed by each qualified heir having an interest in the property being specially valued?

Has every qualified heir expressed consent to personal liability under section 2032A(c) in the event of an early disposition or early cessation of qualified use?

Is the agreement that is actually signed by the qualified heirs in a form that is binding on all of the qualified heirs having an interest in the specially valued property?

Does the agreement designate an agent to act for the parties to the agreement in all dealings with the IRS on matters arising under section 2032A?

Has the agreement been signed by the designated agent and does it give the address of the agent?

Caution: If any assets to which the special rule of Regulations section 20.2010-2(a)(7)(ii) applies are reported on this schedule, do not enter any value in the last three columns. See the instructions for Part V, Item 10, for information on how to estimate and report the value of these assets.

Tip: Before completing Schedule B (Form 706), see the examples illustrating the alternate valuation dates being adopted and not being adopted, later.

If the total gross estate contains any stocks or bonds, you must complete Schedule B (Form 706) and file it with the return.

On Schedule B (Form 706), list the stocks and bonds included in the decedent’s gross estate. Number each item under column (i).

Note: Unless specifically exempted by an estate tax provision of the Code, bonds that are exempt from federal income tax are not exempt from estate tax. You should list these bonds on Schedule B (Form 706).

Public housing bonds includible in the gross estate must be included at their full value.

If you paid any estate, inheritance, legacy, or succession tax to a foreign country on any stocks or bonds included in this schedule, group those stocks and bonds together and label them “Subjected to Foreign Death Taxes.”

List interest and dividends on each stock or bond on a separate line.

Indicate as a separate item dividends that have not been collected at death and are payable to the decedent or the estate because the decedent was a stockholder of record on the date of death. However, if the stock is being traded on an exchange and is selling ex-dividend on the date of the decedent’s death, do not include the amount

of the dividend as a separate item. Instead, add it to the ex-dividend quotation in determining the FMV of the stock on the date of the decedent’s death. Dividends declared on shares of stock before the death of the decedent but payable to stockholders of record on a date after the decedent’s death are not includible in the gross estate for federal estate tax purposes and should not be listed here.

Description

Stocks. For stocks, indicate:

• Number of shares;

• Whether common or preferred;

• Issue;

• Par value where needed for identification;

• Price per share;

• Exact name of corporation;

• Principal exchange upon which sold, if listed on an exchange; and

• 9-digit Committee on Uniform Security Identification Procedures (CUSIP) number.

If the gross estate includes any interest in a trust, partnership, or closely held entity, provide the EIN of the entity in the appropriate column on Schedules B, E, F, G, M, and O of Form 706. You must also provide the EIN of an estate (if any) on the above-noted schedules, where applicable.

CUSIP number. The CUSIP number is a 9-digit number that is assigned to all stocks and bonds traded on major exchanges and many unlisted securities. Usually, the CUSIP number is printed on the face of the stock certificate. If you do not have a stock certificate, the CUSIP number may be found on the broker’s or custodian’s statement or by contacting the company’s transfer agent.

Valuation List the FMV of the stocks or bonds. The FMV of a stock or bond (whether listed or unlisted) is the mean between the highest and lowest selling prices quoted on the valuation date. If only the closing selling prices are available, then the FMV is the mean between the quoted closing selling price on the valuation date and on the trading day before the valuation date.

If there were no sales on the valuation date, figure the FMV as follows.

1. Find the mean between the highest and lowest selling prices on the nearest trading date before and the nearest trading date after the valuation date. Both trading dates must be reasonably close to the valuation date.

Bonds. For bonds, indicate:

• Quantity and denomination;

• Name of obligor;

• Date of maturity;

• Interest rate;

• Interest due date;

• Principal exchange, if listed on an exchange; and

• 9-digit CUSIP number.

If the stock or bond is unlisted, show the company’s principal business office.

28 Instructions for Form 706 (Rev. 7-2026)

Schedule B (Form 706)—Examples

Example showing use of Schedule B (Form 706) where the alternate valuation is not adopted; date of death, January 1, 2026.

1 Enter all stocks and bonds that are included in the decedent’s gross estate. See instructions.

Example showing use of Schedule B (Form 706) where the alternate valuation is adopted; date of death, January 1, 2026.

1 Enter all stocks and bonds that are included in the decedent’s gross estate. See instructions.

2. Prorate the difference between the mean prices to the valuation date.

3. Add or subtract (whichever applies) the prorated part of the difference to or from the mean price figured for the nearest trading date before the valuation date.

If no actual sales were made reasonably close to the valuation date, make the same computation using the mean between the bona fide bid and asked prices instead of sales prices. If actual sales prices or bona fide bid and asked prices are available within a reasonable period of

time before the valuation date but not after the valuation date, or vice versa, use the mean between the highest and lowest sales prices or bid and asked prices as the FMV.

For example, assume that sales of stock nearest the valuation date (June 15) occurred 2 trading days before (June 13) and 3 trading days after (June 18). On those days, the mean sale prices per share were $10 and $15, respectively. Therefore, the price of $12 is considered the FMV of a share of stock on the valuation date. If, however, on June 13 and 18, the mean sale prices per share were

Instructions for Form 706 (Rev. 7-2026) 29

$15 and $10, respectively, the FMV of a share of stock on the valuation date is $13.

If only closing prices for bonds are available, see Regulations section 20.2031-2(b).

Apply the rules in the section 2031 regulations to determine the value of inactive stock and stock in close corporations. Attach to Schedule B (Form 706) complete financial and other data used to determine value, including balance sheets (particularly the one nearest to the valuation date) and statements of the net earnings or operating results and dividends paid for each of the 5 years immediately before the valuation date.

Securities reported as of no value, of nominal value, or obsolete should be listed last. Include the address of the company and the state and date of incorporation. Attach copies of correspondence or statements used to determine the “no value.”

If the security was listed on more than one stock exchange, use either the records of the exchange where the security is principally traded or the composite listing of combined exchanges, if available, in a publication of general circulation. In valuing listed stocks and bonds, you should carefully check accurate records to obtain values for the applicable valuation date.

If you get quotations from brokers, or evidence of the sale of securities from the officers of the issuing companies, attach to the schedule copies of the letters furnishing these quotations or evidence of sale.

Caution: If any assets to which the special rule of Regulations section 20.2010-2(a)(7)(ii) applies are reported on this schedule, do not enter any value in the last three columns. See the instructions for Part V, Item 10, for information on how to estimate and report the value of these assets.

5. Cash in banks, savings and loan associations, and other types of financial organizations.

Description

Promissory notes. For promissory notes, list in the same way as mortgages.

Contracts by the decedent to sell land. For contracts by the decedent to sell land, list:

• Name of purchaser,

• Contract date,

• Property description,

• Sale price,

• Initial payment,

• Amounts of installment payment,

• Unpaid balance of principal, and

• Interest rate.

Cash in possession. For cash on hand, list such cash separately from bank deposits.

Cash in financial organizations. For cash in banks, savings and loan associations, and other types of financial organizations, list:

• Name and address of each financial organization;

• Amount in each account;

• Serial or account number;

• Nature of account—checking, savings, time deposit, etc.; and

• Unpaid interest accrued from date of last interest payment to the date of death.

Note: If you obtain statements from the financial organizations, keep them for IRS inspection.

Caution: If any assets to which the special rule of Regulations section 20.2010-2(a)(7)(ii) applies are reported on this schedule, do not enter any value in the last three columns. See the instructions for Part V, Item 10, for information on how to estimate and report the value of these assets.

If you are required to file Form 706 and there was any insurance on the decedent’s life, whether or not included in the gross estate, you must complete Schedule D (Form 706) and file it with the return.

Mortgages. For mortgages, list:

• Face value,

• Unpaid balance,

• Date of mortgage,

• Name of maker,

• Property mortgaged,

• Date of maturity,

• Interest rate, and

• Interest date.

Mortgage description example. “Bond and mortgage of $50,000, unpaid balance: $17,000; dated: January 1, 1992; J. Doe to R. Roe; premises: 22 Clinton Street, Newark, NJ; due: January 1, 2026; interest payable at 10% a year—January 1 and July 1.”

Complete Schedule C (Form 706) and file it with your return if the total gross estate contains any:

• Mortgages,

• Notes, or

• Cash.

List on Schedule C (Form 706):

• Mortgages and notes payable to the decedent at the time of death, and

• Cash the decedent had at the date of death.

Note: Do not list mortgages and notes payable by the decedent on Schedule C (Form 706). (If these are deductible, list them on Schedule K (Form 706).)

Schedule C (Form 706) reporting order. List the items on Schedule C (Form 706) in the following order.

1. Mortgages.

2. Promissory notes.

3. Contracts by decedent to sell land.

4. Cash in possession.

30 Instructions for Form 706 (Rev. 7-2026)

Insurance you must include on Schedule D (Form 706). Under section 2042, you must include in the gross estate:

• Insurance on the decedent’s life receivable by or for the benefit of the estate; and

• 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 (Form 706) 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 that 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 (Form 706) 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 following incidents of ownership, exercisable either alone or in conjunction with any person or entity.

Incidents of ownership in a policy include the following.

• The right of the insured or estate to its economic benefits.

• The power to change the beneficiary.

• The power to surrender or cancel the policy.

• The power to assign the policy or to revoke an assignment.

• The power to pledge the policy for a loan.

• The power to obtain from the insurer a loan against the surrender value of the policy.

• A reversionary 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 for Schedule G (Form 706) for a description of these sections.

How to Complete Schedule D (Form 706) You must list every insurance policy on the life of the decedent, whether or not it is included in the gross estate.

Under column (ii), Description, list:

• The name of the insurance company, and

• The number of the policy.

For every life insurance policy listed on the schedule, request a statement on Form 712 from the company that issued the policy. Attach the Form 712 to Schedule D (Form 706).

Note: If the insurance company that issued the policy will not provide Form 712, you should attach evidence that verifies the amount includible on Schedule D (Form 706), including but not limited to an attachment, rider, assignment, copy of insurance proceeds check, and other relevant material.

If the policy proceeds are paid in one sum, enter the net proceeds received from Form 712, line 24 on column (v) (and column (iv), alternate value). 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, explain why they were not included.

Caution: If any assets to which the special rule of Regulations section 20.2010-2(a)(7)(ii) applies are reported on this schedule, do not enter any value in the last three columns. See the instructions for Part V, Item 10, for information on how to estimate and report the value of these assets.

If you are required to file Form 706, complete Schedule E (Form 706) 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.

Enter on this schedule 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.

Do not list on this schedule property that the decedent held as a tenant in common, but report the value of the interest on Schedule A (Form 706) if real estate, or on the appropriate schedule if personal property. Similarly, community property held by the decedent and spouse should be reported on the appropriate Schedules A through I of Form 706. 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 (Form 706).

Instructions for Form 706 (Rev. 7-2026) 31

How to Complete Schedule E (Form 706)