Prepare an estate tax return (Form 706) for Harriet.

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Form 706 United States Estate (and Generation-Skipping Transfer) Tax Return (Rev. August 2013) decedents dying after December 31, 2012. Part 1Decedent and Executor Department of the Treasury Internal Revenue Service a Information about Form 706 and its separate instructions is at www.irs.gov/form706. 1a Decedent's first name and middle initial (and maiden name, if any) 3a City, town, or post office; county; state or province; country; and ZIP or 3b Year domicile established foreign postal code. 1b Decedent's last name 2 Decedent's social security no. 4 Date of birth 5 Date of death 6b Executor's address (number and street including apartment or suite no.; city, town, or post office; state or province; country; and ZIP or foreign postal code) and phone no. 6a Name of executor (see instructions) 6c Executor's social security number (see instructions) 6d 7a If there are multiple executors, check here and attach a list showing the names, addresses, telephone numbers, and SSNs of the additional executors. Name and location of court where will was probated or estate administered 7b Case number Phone no. 8 10 If decedent died testate, check here a and attach a certified copy of the will. 9 If you extended the time to file this Form 706, check here a If Schedule R-1 is attached, check here a 11 If you are estimating the value of assets included in the gross estate on line 1 pursuant to the special rule of Reg. section 20.2010-2T(a) (7)(ii), check here a 1 2 3a b c Part 2Tax Computation OMB No. 1545-0015 a Estate of a citizen or resident of the United States (see instructions). To be filed for Total gross estate less exclusion (from Part 5Recapitulation, item 13) . Tentative total allowable deductions (from Part 5Recapitulation, item 24) Tentative taxable estate (subtract line 2 from line 1) . . . . . . . State death tax deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 3a 3b Taxable estate (subtract line 3b from line 3a) . . . . . . . . . . . . 4 5 6 Adjusted taxable gifts (see instructions) . . . . . . . . . Add lines 3c and 4 . . . . . . . . . . . . . . . Tentative tax on the amount on line 5 from Table A in the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3c 4 5 6 7 Total gift tax paid or payable (see instructions) . . . . . . . . . . . . . . . . . 7 8 9a Gross estate tax (subtract line 7 from line 6) . Basic exclusion amount . . . . . . . . . . . . . . . . . . . . . . . . . 9a . . . . . . . 8 9b Deceased spousal unused exclusion (DSUE) amount from predeceased spouse(s), if any (from Section D, Part 6Portability of Deceased Spousal Unused Exclusion). . Applicable exclusion amount (add lines 9a and 9b) . . . . . . . 9c 9d 10 . . . . . . 9b 9c Applicable credit amount (tentative tax on the amount in 9c from Table A in the instructions) . . . . . . . . . . . . . . . . 9d 11 Adjustment to applicable credit amount (May not exceed $6,000. See instructions.) . . . . . . . . . . . . . . . . . . Allowable applicable credit amount (subtract line 10 from line 9d) . . . . . . . . . 11 12 13 14 15 16 17 Subtract line 11 from line 8 (but do not enter less than zero) . . . . . . . Credit for foreign death taxes (from Schedule P). (Attach Form(s) 706-CE.) 13 Credit for tax on prior transfers (from Schedule Q) . . . . . . . 14 Total credits (add lines 13 and 14) . . . . . . . . . . . . . . . Net estate tax (subtract line 15 from line 12) . . . . . . . . . . . . Generation-skipping transfer (GST) taxes payable (from Schedule R, Part 2, line 10) . . . . . . 12 . . . . . . . . . . . . . . . . . . 15 16 17 18 19 20 Total transfer taxes (add lines 16 and 17) . . . . . . . Prior payments (explain in an attached statement) . . . . Balance due (or overpayment) (subtract line 19 from line 18) . . . . . . . . . . . . . . . . . . . 18 19 20 . . . . . . . . . . . . . 10 . . . . . . . Under penalties of perjury, I declare that I 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. FF Paid Preparer Use Only FF Sign Here Signature of executor Signature of executor Print/Type preparer's name Firm's name Preparer's signature Date Date Check if self-employed PTIN Firm's EIN a a Firm's address a For Privacy Act and Paperwork Reduction Act Notice, see instructions. Date Phone no. Cat. No. 20548R Form 706 (Rev. 8-2013) Form 706 (Rev. 8-2013) Decedent's social security number Estate of: Part 3Elections by the Executor Note. For information on electing portability of the decedent's DSUE amount, including how to opt out of the election, see Part 6 Portability of Deceased Spousal Unused Exclusion. Note. Some of the following elections may require the posting of bonds or liens. Please check "Yes" or "No" box for each question (see instructions). 1 Do you elect alternate valuation? . . . . . . . . . . Yes No . . . . . . . . . . . 2 Do you elect special-use valuation? If \"Yes,\" you must complete and attach Schedule A-1 . . . . . . . . . . 1 2 3 Do you elect to pay the taxes in installments as described in section 6166? . . . . . . . . . . . . . . . If \"Yes,\" you must attach the additional information described in the instructions. Note. By electing section 6166 installment payments, you may be required to provide security for estate tax deferred under section 6166 and interest in the form of a surety bond or a section 6324A lien. Do you elect to postpone the part of the taxes due to a reversionary or remainder interest as described in section 6163? . 3 4 4 . . . . . . Part 4General Information Note. Please attach the necessary supplemental documents. You must attach the death certificate. (See instructions) Authorization to receive confidential tax information under Reg. section 601.504(b)(2)(i); to act as the estate's representative before the IRS; and to make written or oral presentations on behalf of the estate: Name of representative (print or type) I declare that I am the attorney/ State certified public accountant/ Address (number, street, and room or suite no., city, state, and ZIP code) enrolled agent (check the applicable box) for the executor. I am not under suspension or disbarment 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 a 3a Marital status of the decedent at time of death: Married Widow/widower and state decedent's former business or occupation. Single Legally separated Divorced 3b For all prior marriages, list the name and SSN of the former spouse, the date the marriage ended, and whether the marriage ended by annulment, divorce, or death. Attach additional statements of the same size if necessary. 4a Surviving spouse's name 5 4b Social security number 4c Amount received (see instructions) 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). Name of individual, trust, or estate receiving $5,000 or more Identifying number All unascertainable beneficiaries and those who receive less than $5,000 . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . Relationship to decedent . . . . . . . . . . . . . . . . Amount (see instructions) . . . . . . a . . . . . Yes No If you answer \"Yes\" to any of the following questions, you must attach additional information as described. 6 Is the estate filing a protective claim for refund? . . . . . . . . If \"Yes,\" complete and attach two copies of Schedule PC for each claim. 7 Does the gross estate contain any section 2044 property (qualified terminable interest property (QTIP) from a prior gift or estate)? (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8a Have federal gift tax returns ever been filed? . . . . . . . . . . . . . If \"Yes,\" attach copies of the returns, if available, and furnish the following information: Period(s) covered c Internal Revenue office(s) where filed b 9a b . . . . . . . . . . . . . . . . . . . . . . Was there any insurance on the decedent's life that is not included on the return as part of the gross estate? . . . . . . Did the decedent own any insurance on the life of another that is not included in the gross estate? . . . . . . . . . . . Page 2 Form 706 (Rev. 8-2013) Decedent's social security number Estate of: Part 4General Information (continued) Yes No If you answer \"Yes\" to any of the following questions, you must attach additional information as described. 10 Did the decedent at the time of death own any property as a joint tenant with right of survivorship in which (a) one or more of the other joint tenants was someone other than the decedent's spouse, and (b) less than the full value of the property is included on the return as part of the gross estate? If \"Yes,\" you must complete and attach Schedule E . . . . . . . . . . . 11a Did the decedent, at the time of death, own any interest in a partnership (for example, a family limited partnership), an unincorporated business, or a limited liability company; or own any stock in an inactive or closely held corporation? . . . . b If \"Yes,\" was the value of any interest owned (from above) discounted on this estate tax return? If \"Yes,\" see the instructions on reporting the total accumulated or effective discounts taken on Schedule F or G . . . . . . . . . . . . . . 12 13a b c Did the decedent make any transfer described in sections 2035, 2036, 2037, or 2038? (see instructions) If \"Yes,\" you must complete and attach Schedule G . . . . . . . . . . . . . . . . . . . . . . . . . . . . Were there in existence at the time of the decedent's death any trusts created by the decedent during his or her lifetime? . . Were there in existence at the time of the decedent's death any trusts not created by the decedent under which possessed any power, beneficial interest, or trusteeship? . . . . . . . . . . . . . . . . . Was the decedent receiving income from a trust created after October 22, 1986, by a parent or grandparent? . . If \"Yes,\" was there a GST taxable termination (under section 2612) on the death of the decedent? . . . . . the . . . decedent . . . . . . . . . d If there was a GST taxable termination (under section 2612), attach a statement to explain. Provide a copy of the trust or will creating the trust, and give the name, address, and phone number of the current trustee(s). e Did the decedent at any time during his or her lifetime transfer or sell an interest in a partnership, limited liability company, or closely held corporation to a trust described in lines 13a or 13b? . . . . . . . . . . . . . . . . . . . If \"Yes,\" provide the EIN for this transferred/sold item. a 14 Did the decedent ever possess, exercise, or release any general power of appointment? If \"Yes,\" you must complete and attach Schedule H . 15 Did the decedent have an interest in or a signature or other authority over a financial account in a foreign country, such as a bank account, securities account, or other financial account? . . . . . . . . . . . . . . . . . . . . . 16 Was the decedent, immediately before death, receiving an annuity described in the \"General\" paragraph of the instructions for Schedule I or a private annuity? If \"Yes,\" you must complete and attach Schedule I . . . . . . . . . . . . . 17 Was the decedent ever the beneficiary of a trust for which a deduction was claimed by the estate of a predeceased spouse under section 2056(b)(7) and which is not reported on this return? If \"Yes,\" attach an explanation . . . . . . . . . . . . Part 5Recapitulation. Note. If estimating the value of one or more assets pursuant to the special rule of Reg. section 20.2010-2T(a)(7)(ii), enter on both lines 10 and 23 the amount noted in the instructions for the corresponding range of values. (See instructions for details.) Item no. Gross estate 1 2 3 4 5 6 7 8 9 10 11 12 Schedule AReal Estate . . . . . . . . . . . . . . . . Schedule BStocks and Bonds . . . . . . . . . . . . . . Schedule CMortgages, Notes, and Cash . . . . . . . . . . . Schedule DInsurance on the Decedent's Life (attach Form(s) 712) . . . . Schedule EJointly Owned Property (attach Form(s) 712 for life insurance) . Schedule FOther Miscellaneous Property (attach Form(s) 712 for life insurance) Schedule GTransfers During Decedent's Life (att. Form(s) 712 for life insurance) Schedule HPowers of Appointment . . . . . . . . . . . . Schedule IAnnuities . . . . . . . . . . . . . . . . . 13 Item no. Alternate value Estimated value of assets subject to the special rule of Reg. section 20.2010-2T(a)(7)(ii) Total gross estate (add items 1 through 10) . . . . . Schedule UQualified Conservation Easement Exclusion . . . . . . . . . . . . Total gross estate less exclusion (subtract item 12 from item 11). Enter here and on line 1 of Part 2Tax Computation . . . . . . . . . . . . . Value at date of death 1 2 3 4 5 6 7 8 9 10 11 12 13 Deductions Amount 15 16 17 18 19 20 21 Schedule JFuneral Expenses and Expenses Incurred in Administering Property Subject to Claims Schedule KDebts of the Decedent . . . . . . . . . . . . . . . . Schedule KMortgages and Liens . . . . . . . . . . . . . . . . Total of items 14 through 16 . . . . . . . . . . . . . . . . . . Allowable amount of deductions from item 17 (see the instructions for item 18 of the Recapitulation) Schedule LNet Losses During Administration . . . . . . . . . . . . . Schedule LExpenses Incurred in Administering Property Not Subject to Claims . . . Schedule MBequests, etc., to Surviving Spouse . . . . . . . . . . . . . . . . . . . . 14 15 16 17 18 19 20 21 22 23 24 Schedule OCharitable, Public, and Similar Gifts and Bequests . . . . . . . . . . . . . Estimated value of deductible assets subject to the special rule of Reg. section 20.2010-2T(a)(7)(ii) . . . Tentative total allowable deductions (add items 18 through 23). Enter here and on line 2 of the Tax Computation 22 23 24 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 3 Form 706 (Rev. 8-2013) Decedent's social security number Estate of: Part 6Portability of Deceased Spousal Unused Exclusion (DSUE) Portability Election A decedent with a surviving spouse elects portability of the deceased spousal unused exclusion (DSUE) amount, if any, by completing and timely-filing this return. No further action is required to elect portability of the DSUE amount to allow the surviving spouse to use the decedent's DSUE amount. Section A. Opting Out of Portability The estate of a decedent with a surviving spouse may opt out of electing portability of the DSUE amount. Check here and do not complete Sections B and C of Part 6 only if the estate opts NOT to elect portability of the DSUE amount. Section B. QDOT Yes No Are any assets of the estate being transferred to a qualified domestic trust (QDOT)? . . . . . . . . . . . . . . . . . If \"Yes,\" the DSUE amount portable to a surviving spouse (calculated in Section C, below) is preliminary and shall be redetermined at the time of the final distribution or other taxable event imposing estate tax under section 2056A. See instructions for more details. Section C. DSUE Amount Portable to the Surviving Spouse election.) (To be completed by the estate of a decedent making a portability Complete the following calculation to determine the DSUE amount that can be transferred to the surviving spouse. 1 Enter the amount from line 9c, Part 2Tax Computation . . . . . . . . . . . . . . . 2 Reserved . . . . . . . . . . . . . . . 1 2 3 Enter the value of the cumulative lifetime gifts on which tax was paid or payable (see instructions) 4 5 6 Add lines 1 and 3 . . . . . . . . . . . Enter amount from line 10, Part 2Tax Computation . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8 Divide amount on line 5 by 40% (0.40) (do not enter less than zero) Subtract line 6 from line 4 . . . . . . . . . . . . Enter the amount from line 5, Part 2- Tax Computation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 6 9 Subtract line 8 from line 7 (do not enter less than zero) . . . . . . . . . . . . . 9 DSUE amount portable to surviving spouse (Enter lesser of line 9 or line 9a, Part 2 - Tax Computation) . . 10 10 . . . . . . . . . Section D. DSUE Amount Received from Predeceased Spouse(s) spouse with DSUE amount from predeceased spouse(s)) 7 8 (To be completed by the estate of a deceased surviving Provide the following information to determine the DSUE amount received from deceased spouses. A Name of Deceased Spouse (dates of death after December 31, 2010, only) B Date of Death (enter as mm/dd/yy) C Portability Election Made? Yes D If \"Yes,\" DSUE Amount Received from Spouse E DSUE Amount Applied by Decedent to Lifetime Gifts F Year of Form 709 Reporting Use of DSUE Amount Listed in col E G Remaining DSUE Amount, if any (subtract col. E from col. D) No Part 1 DSUE RECEIVED FROM LAST DECEASED SPOUSE Part 2 DSUE RECEIVED FROM OTHER PREDECEASED SPOUSE(S) AND USED BY DECEDENT Total (for all DSUE amounts from predeceased spouse(s) applied) . . . . Add the amount from Part 1, column D and the total from Part 2, column E. Enter the result on line 9b, Part 2Tax Computation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a Page 4 Form 706 (Rev. 8-2013) Decedent's social security number Estate of: SCHEDULE AReal Estate For jointly owned property that must be disclosed on Schedule E, see instructions. Real estate that is part of a sole proprietorship should be shown on Schedule F. Real estate that is included in the gross estate under sections 2035, 2036, 2037, or 2038 should be shown on Schedule G. Real estate that is included in the 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. Note. If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amount and the Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions and Reg. section 20.2010-2T (a)(7)(ii) for more information. If you are not required to report the value of an asset, identify the property but make no entries in the last three columns. Item number Description Alternate valuation date Alternate value Value at date of death Total from continuation schedules or additional statements attached to this schedule . . . TOTAL. (Also enter on Part 5Recapitulation, page 3, at item 1.) . . . . . . . . . (If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.) Schedule APage 5 Form 706 (Rev. 8-2013) Decedent's social security number Estate of: SCHEDULE BStocks and Bonds (For jointly owned property that must be disclosed on Schedule E, see instructions.) Note. If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amount and the Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions and Reg. section 20.2010-2T (a)(7)(ii) for more information. If you are not required to report the value of an asset, identify the property but make no entries in the last four columns. Item number Description, including face amount of bonds or number of shares and par value for identification. Give CUSIP number. If trust, partnership, or closely held entity, give EIN. Unit value Alternate valuation date Alternate value Value at date of death CUSIP number or EIN, where applicable Total from continuation schedules (or additional statements) attached to this schedule TOTAL. (Also enter on Part 5Recapitulation, page 3, at item 2.) . . . . . . . . . . . . . (If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.) Schedule BPage 10 Form 706 (Rev. 8-2013) Decedent's social security number Estate of: SCHEDULE CMortgages, Notes, and Cash (For jointly owned property that must be disclosed on Schedule E, see instructions.) Note. If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amount and the Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions and Reg. section 20.2010-2T (a)(7)(ii) for more information. If you are not required to report the value of an asset, identify the property but make no entries in the last three columns. Item number Description Alternate valuation date Alternate value Value at date of death Total from continuation schedules (or additional statements) attached to this schedule . . TOTAL. (Also enter on Part 5Recapitulation, page 3, at item 3.) . . . . . . . . . (If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.) Schedule CPage 11 Form 706 (Rev. 8-2013) Decedent's social security number Estate of: SCHEDULE DInsurance on the Decedent's Life You must list all policies on the life of the decedent and attach a Form 712 for each policy. Note. If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amount and the Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions and Reg. section 20.2010-2T (a)(7)(ii) for more information. If you are not required to report the value of an asset, identify the property but make no entries in the last three columns. Item number Description Alternate valuation date Alternate value Value at date of death Total from continuation schedules (or additional statements) attached to this schedule . . TOTAL. (Also enter on Part 5Recapitulation, page 3, at item 4.) . . . . . . . . . (If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.) Schedule DPage 12 Form 706 (Rev. 8-2013) Decedent's social security number Estate of: SCHEDULE EJointly Owned Property (If you elect section 2032A valuation, you must complete Schedule E and Schedule A-1.) PART 1. Qualified Joint InterestsInterests Held by the Decedent and His or Her Spouse as the Only Joint Tenants (Section 2040(b)(2)) Note. If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amount and the Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions and Reg. section 20.2010-2T (a)(7)(ii) for more information. If you are not required to report the value of an asset, identify the property but make no entries in the last three columns. Item number Alternate valuation date Description. For securities, give CUSIP number. If trust, partnership, or closely held entity, give EIN. Value at date of death Alternate value CUSIP number or EIN, where applicable 1a 1b Total from continuation schedules (or additional statements) attached to this schedule . . . Totals . . . . . . . . . . . . . . . Amounts included in gross estate (one-half of line 1a) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a 1b 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 statement. Name Address (number and street, city, state, and ZIP code) A. B. C. Item number Enter letter for co-tenant Description (including alternate valuation date if any). For securities, give CUSIP number. If trust, partnership, or closely held entity, give EIN Percentage includible Includible alternate value Includible value at date of death CUSIP number or EIN, where applicable Total from continuation schedules (or additional statements) attached to this schedule . . . 2b Total other joint interests . . 3 Total includible joint interests (add lines 1b and 2b). Also enter on Part 5Recapitulation, page 3, at item 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2b 3 (If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.) Schedule EPage 13 Form 706 (Rev. 8-2013) Decedent's social security number Estate of: SCHEDULE FOther Miscellaneous Property Not Reportable Under Any Other Schedule (For jointly owned property that must be disclosed on Schedule E, see instructions.) (If you elect section 2032A valuation, you must complete Schedule F and Schedule A-1.) Note. If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amount and the Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions and Reg. section 20.2010-2T (a)(7)(ii) for more information. If you are not required to report the value of an asset, identify the property but make no entries in the last three columns. Yes No 1 Did the decedent own any works of art, items, or any collections whose artistic or collectible value at date of death exceeded $3,000? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . If \"Yes,\" submit full details on this schedule and attach appraisals. 2 Has the decedent's estate, spouse, or any other person received (or will receive) any bonus or award as a result of the decedent's employment or death? . . . . . . . . . . . . . . . . . . . . . . . . . . If \"Yes,\" submit full details 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 jointly by 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 number Description. For securities, give CUSIP number. If trust, partnership, or closely held entity, give EIN Alternate valuation date Alternate value Value at date of death CUSIP number or EIN, where applicable Total from continuation schedules (or additional statements) attached to this schedule . . TOTAL. (Also enter on Part 5Recapitulation, page 3, at item 6.) . . . . . . . . . (If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.) Schedule FPage 14 Form 706 (Rev. 8-2013) Decedent's social security number Estate of: SCHEDULE GTransfers During Decedent's Life (If you elect section 2032A valuation, you must complete Schedule G and Schedule A-1.) Note. If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amount and the Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions and Reg. section 20.2010-2T (a)(7)(ii) for more information. If you are not required to report the value of an asset, identify the property but make no entries in the last three columns. Item number Description. For securities, give CUSIP number. If trust, partnership, or closely held entity, give EIN A. Gift tax paid or payable 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(b)) . . . . . . . . . . . . Transfers includible under sections 2035(a), 2036, 2037, or 2038: B. Alternate valuation date Alternate value Value at date of death X X X X X Total from continuation schedules (or additional statements) attached to this schedule . TOTAL. (Also enter on Part 5Recapitulation, page 3, at item 7.) . . . . . . . . . . SCHEDULE HPowers of Appointment (Include \"5 and 5 lapsing\" powers (section 2041(b)(2)) held by the decedent.) (If you elect section 2032A valuation, you must complete Schedule H and Schedule A-1.) Note. If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amount and the Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions and Reg. section 20.2010-2T (a)(7)(ii) for more information. If you are not required to report the value of an asset, identify the property but make no entries in the last three columns. Item number Description Alternate valuation date Alternate value Value at date of death Total from continuation schedules (or additional statements) attached to this schedule . . . TOTAL. (Also enter on Part 5Recapitulation, page 3, at item 8.) . . . . . . . . . . (If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.) Schedules G and HPage 15 Form 706 (Rev. 8-2013) Decedent's social security number Estate of: SCHEDULE JFuneral Expenses and Expenses Incurred in Administering Property Subject to Claims a Use Schedule PC to make a protective claim for refund due to an expense not currently deductible. For such a claim, report the expense on Schedule J but without a value in the last column. Note. Do not list expenses of administering property not subject to claims on this schedule. To report those expenses, see instructions. 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, U.S. Income Tax Return for Estates and Trusts, if a waiver is filed to forgo the deduction on Form 706 (see Instructions for Form 1041). Yes No Are you aware of any actual or potential reimbursement to the estate for any expense claimed as a deduction on this schedule? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . If \"Yes,\" attach a statement describing the expense(s) subject to potential reimbursement. (see instructions) Item number Description Expense amount Total amount A. Funeral expenses: Total funeral expenses . . . . . . . . . . . . . . . . . . B. Administration expenses: 1 Executors' commissionsamount estimated/agreed upon/paid. (Strike out the words that do not apply.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Attorney feesamount estimated/agreed upon/paid. (Strike out the words that do not apply.) . . 3 Accountant feesamount estimated/agreed upon/paid. (Strike out the words that do not apply.) . 4 Miscellaneous expenses: a . . . Expense amount Total miscellaneous expenses from continuation schedules (or additional statements) attached to this schedule . . . . . . . . . . . . . . . . . . . . . Total miscellaneous expenses . . . . . . . . . . . . . . . . . . . . . . . . a TOTAL. (Also enter on Part 5Recapitulation, page 3, at item 14.) . . . . . . . . . . . . . a (If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.) Schedule JPage 17 Form 706 (Rev. 8-2013) Decedent's social security number Estate of: SCHEDULE KDebts of the Decedent, and Mortgages and Liens a Use Schedule PC to make a protective claim for refund due to a claim not currently deductible. For such a claim, report the expense on Schedule K but without a value in the last column. Yes No Are you aware of any actual or potential reimbursement to the estate for any debt of the decedent, mortgage, or lien claimed as a deduction on this schedule? . . . . . . . . . . . . . . . . . . . . . . . . . If \"Yes,\" attach a statement describing the items subject to potential reimbursement. (see instructions) Are any of the items on this schedule deductible under Reg. section 20.2053-4(b) and Reg. section 20.2053-4(c)? . . If \"Yes,\" attach a statement indicating the applicable provision and documenting the value of the claim. Item number Debts of the DecedentCreditor and nature of debt, and allowable death taxes Total from continuation schedules (or additional statements) attached to this schedule . TOTAL. (Also enter on Part 5Recapitulation, page 3, at item 15.) . . . . . . . Item number Mortgages and LiensDescription Amount . . . . . . . . . . . . Amount Total from continuation schedules (or additional statements) attached to this schedule . . . . . . . TOTAL. (Also enter on Part 5Recapitulation, page 3, at item 16.) . . . . . . . . . . . . . (If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.) Schedule KPage 18 Form 706 (Rev. 8-2013) Decedent's social security number Estate of: SCHEDULE OCharitable, Public, and Similar Gifts and Bequests Note. If the value of the gross estate, together with the amount of adjusted taxable gifts, is less than the basic exclusion amount and the Form 706 is being filed solely to elect portability of the DSUE amount, consideration should be given as to whether you are required to report the value of assets eligible for the marital or charitable deduction on this schedule. See the instructions and Reg. section 20.2010-2T (a)(7)(ii) for more information. If you are not required to report the value of an asset, identify the property but make no entry in the last column. Yes 1a b According to the information and belief of the person or persons filing this return, is any such action planned? 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 . . . . . . 3 . . . . . . 4d Federal estate tax payable out of property interests listed above . . . . . 4a b Other death taxes payable out of property interests listed above . . . . . 4b Federal and state GST taxes payable out of property interests listed above . 4c d Add items 4a, 4b, and 4c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amount . 4a . . . . . . . . . . . . . . . . . . . . . . . Total . . . 3 . . Character of institution Total from continuation schedules (or additional statements) attached to this schedule . c No If the transfer was made by will, has any action been instituted to contest or have interpreted any of its provisions affecting the charitable deductions claimed in this schedule? . . . . . . . . . . . . . . . . . . If ''Yes,'' full details must be submitted with this schedule. . . 5 Net value of property interests listed above (subtract 4d from 3). Also enter on Part 5Recapitulation, page 3, at item 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 (If more space is needed, attach the continuation schedule from the end of this package or additional statements of the same size.) Schedule OPage 21 3. Harriet C. Harper, age 74, died as a result of an automobile accident on June 6, 2013. At the time of her death, Harriet lived at 1520 Marlin Drive, Clearwater, FL 33758. She was predeceased by her husband, John W. Harper, who died in 2001. Harriet is survived by her two adult children, Travis Harper and Hannah Baker. Information regarding Harriet's estate is summarized below. John's will established a marital deduction trust with $1 million of assets. Under the terms of the trust, Harriet received a life estate with the remainder passing to their children (i.e., Travis and Hannah). To obtain a marital deduction for John's estate, his executor made a QTTP election. On June 6, 2013, the trust had a value of $2 million. During 2013, the trust assets are distributed to Travis and Hannah. Harriet owned three insurance policies with Falcon Assurance Companyone on her life and one on the life of each of her children. All policies have a maturity value of $100,000; all name Harriet or her estate as the beneficiary. As of June 6, 2013, the policies on Travis and Hannah each had a value of $40,000. A tract of undeveloped land in Pinellas County (FL) was purchased by Harriet as an investment in 2002 for $300,000. To help finance the purchase, Harriet obtained mortgage funds from Tampa Savings and Loan. As of June 6, 2013, the land was worth $900,000, and Harriet owed $100,000 on the mortgage. Rental beach cottages in Destin (FL) were inherited from John and worth $1 million on June 6, 2013. The cottages had a value of $600,000 when John died; his original cost is unknown. A family vacation lodge in Union (SC) was held as joint tenants with right of survivorship in the names of Harriet Harper, Travis Harper, and Hannah Baker. The property was purchased in 2002 for $400,000; $200,000 was provided by Harriet and $100,000 was furnished by each of her children. On June 6, 2013, the lodge was worth $1 million. Harriet's Marlin Drive residence is owned by her. It had a value of $500,000 on June 6, 2013. The accident that fatally injured Harriet was caused by the delivery truck of a national soft drink bottling company. Not only was the truck in disrepair, but the driver was charged with DUI. To avoid the adverse publicity of a lawsuit involving the obvious gross negligence, the corporate office offered to settle any claims. After careful deliberation, Harriet's co-executors (Travis and Hannah) signed a release. In return, the estate received $400,000 in cash plus payment of all medical expenses. Of the medical expenses, the doctors and hospital were paid directly by the bottling company. The settlement was received by the estate before it was closed and the Form 706 filed. Other assets owned by Harriet as of June 6, 2013 included: Checking account at Dunedin State Bank $ 17,500 State of Georgia bonds (interest accrued to date of death) $105,000 Personal and household effects $60,000 Federal income tax refund receivable (for tax year 2012) $2,000 Liabilities and expenses in connection with the administration of the estate include: Harriet's credit card debt and household bills (e.g., utilities, gardener) $13,000 Federal income tax (January 1, 2013, to June 6, 2013) $27,000 Funeral expenses $8,000 Attorney's fees $12,000 Accounting fees $10,000 Appraisal fees and court costs $6,000 Unpaid pledge to Clearwater First Methodist Church Building Fund (paid by the estate during its administration) $20,000 Because Travis and Hannah had experience in handling their father's estate, Harriet's will designated them as co-executors of her estate. The probate of the Estate of Harriet C. Harper is completed December 16, 2013. Travis and Hannah are the sole heirs. Prepare an estate tax return (Form 706) for Harriet. In this regard, make the following assumptions. Disregard any request for information that is not available. Some deductions require a choice between the income and estate taxes (Form 706 or Form 1041) and cannot be deducted twice (see Chapters 19 and 20). Resolve all choices in favor of Form 706. Harriet had made no taxable gifts in prior years. Relevant Social Security numbers: Name Social Security Number Harriet Harper 123-45-6781 Travis Harper 123-45-6782 Hannah Baker 123-45-6783