A comprehensive breakdown of every schedule, what it includes, and how to classify estate assets with precision.
Preparing or reviewing IRS Form 706, the United States Estate (and Generation-Skipping Transfer) Tax Return, is not just about pulling together a list of assets. It also means carefully classifying every asset, transfer, debt, deduction and election across more than two dozen schedules.
For estate attorneys, paralegals and tax professionals, misclassification is still one of the most common, and most avoidable, reasons the IRS asks questions. Having a clear handle on the schedules helps you stay accurate, audit ready and confident in the final tax calculation, especially on larger or more complex estates.
This article gives you a complete schedule by schedule reference, from Schedule A through Schedule W, and explains what each covers and what assets or interests belong on each.
Schedules A to I: Gross Estate, Assets, Interests and Receivables
These schedules capture everything that is includable in the decedent’s gross estate, whether it passes through probate or outside probate, for example joint property, trusts and beneficiary designations.
Schedule A - Real Estate
Includes all real property interests, such as:
- Primary residence
- Vacation or investment properties
- Rental property
- Farms or agricultural land
- Fractional or tenancy in common interests
- Community property real estate
Valuation is carried out at the date of death, or on the alternate valuation date if that is elected under section 2032.
Schedule B - Stocks and Bonds
Includes marketable securities, such as:
- Publicly traded stocks
- Corporate or government bonds
- Mutual funds and ETFs
- Certain marketable partnership interests
Valuation typically uses the average of the high and low trading price on the valuation date, as set out in Treasury Regulation section 20.2031-2.
Schedule C - Mortgages, Notes and Cash
Reports all cash type and receivable interests, including:
- Bank accounts
- Certificates of deposit and cash equivalents
- Promissory notes owed to the decedent
- Mortgages the decedent held
- Accrued interest
This schedule usually requires bank statements, loan documents and evidence of outstanding balances.
Schedule D - Insurance on the Decedent’s Life
Includes death benefits from:
- Policies owned by the decedent
- Policies payable to the estate
- Policies where the decedent retained incidents of ownership
Key provisions here are section 2042 and section 2035, the three year rule.
Schedule E - Jointly Owned Property
Covers jointly held property, including:
- Joint tenancy with right of survivorship (JTWROS)
- Tenancy by the entirety
- Community property in certain jurisdictions
- Joint bank or brokerage accounts
This schedule normally requires contribution tracing, except where spousal rules apply.
Schedule F - Other Miscellaneous Property
This is the catch all category for property that is not reportable elsewhere, such as:
- Personal vehicles, boats and aircraft
- Artwork, antiques and collectibles
- Jewelry
- Intellectual property
- Digital assets, for example cryptocurrency
- Tangible personal property of any kind
In practice, attorneys often use Schedule F for household contents and more unusual or one off assets.
Schedule G - Transfers During Lifetime
Captures certain lifetime transfers that are still includable under sections 2035 to 2038, such as:
- Transfers with retained life interests, for example section 2036 trusts
- Transfers that only take effect at death, section 2037
- Revocable transfers, such as revocable living trusts under section 2038
- Life insurance transferred within 3 years of death, section 2035
- Gift tax paid within 3 years of death
This schedule often means you need to review trust instruments, amendments and prior planning in some detail.
Schedule H - Powers of Appointment
Includes property that is subject to a general power of appointment.
A general power exists where the decedent could appoint the property to:
- Themselves
- Their estate
- Their creditors
- The creditors of their estate
This typically arises in trust structures where the decedent had broad powers over trust property.
Schedule I - Annuities
Reports annuity type interests under section 2039, including:
- Commercial annuities
- Pension or survivor annuities
- Retirement annuity contracts
Only the includable portion is entered on this schedule.
Schedules J to O: Deductions, Administrative Expenses and Credits
These schedules reduce the taxable estate by capturing debts, expenses and qualifying deductions.
Schedule J - Funeral Expenses and Administration Expenses (Property Subject to Claims)
Includes:
- Funeral and burial expenses
- Executor commissions
- Attorney and accountant fees
- Administration expenses
Important: only expenses that relate to property subject to claims, generally probate property, belong on Schedule J.
Schedule K - Debts, Mortgages and Liens
Includes:
- Enforceable debts
- Mortgages and liens
- Unpaid property taxes
- Income taxes owed by the decedent
This schedule should be backed up by evidence of the liability, such as statements, loan documents and correspondence.
Schedule L - Net Losses and Administration Expenses (Property Not Subject to Claims)
Includes:
Net losses during administration, including:
- Casualty losses
- Theft losses
- Losses on sale
Administration expenses that relate to non probate property, including:
- Revocable trust assets
- Jointly owned assets that are not subject to claims
- Pay on death assets
Misallocations between Schedules J and L are a common trigger for audit, so it is worth being very deliberate here.
Schedule M - Bequests to Surviving Spouse (Marital Deduction)
Includes qualifying property passing to a surviving spouse, such as:
- Outright transfers
- QTIP property where a section 2056(b)(7) election is made
- Certain life estates
- Community property allocations
This schedule also includes the reverse QTIP election that can be relevant for GST planning.
Schedule O - Charitable, Public and Similar Gifts and Bequests
Reports charitable transfers under section 2055, including:
- Outright charitable bequests
- Charitable remainder trusts
- Partial interests, if properly structured
The IRS often looks closely at this schedule, particularly where partial interests are involved.
Schedule P - Credit for Foreign Death Taxes
Used if the estate is claiming a credit for foreign death taxes paid on property that is included in the United States gross estate.
Schedule PC - Protective Claim for Refund
Used to file a protective claim for potential future deductions under section 2053, such as:
- Contingent liabilities
- Unresolved litigation
- Claims that are not yet ascertainable
It is also used to notify the IRS when the contingency is resolved and a refund is due.
Schedule Q - Credit for Tax on Prior Transfers
Used to compute and claim the credit where the estate includes property that was subject to federal estate tax in another decedent’s estate.
Special Election Schedules: T and U
These schedules apply where the executor is making special valuation or conservation elections.
Schedule T - Qualified Use Valuation (Formerly Schedule A 1)
Used when the executor elects special use valuation under section 2032A. This allows certain real property, often farms or closely held business property, to be valued based on its actual use rather than its full fair market value.
It is a substantial election and it is tightly regulated, so it needs careful handling.
Schedule U - Qualified Conservation Easement Exclusion
Used where the decedent’s property is subject to a qualified conservation easement and the estate is claiming the exclusion under section 2031(c).
Proper documentation of the easement and compliance with the statutory requirements are critical.
Schedules R and R 1: Generation Skipping Transfer (GST) Tax
These schedules deal with GST tax and allocation of GST exemption.
They cover:
- Allocation of the decedent’s GST exemption
- Direct skips
- Taxable terminations
- Taxable distributions
- Trusts that are treated as GST or non GST for tax purposes
- Automatic and manual allocation rules under section 2632
Errors on these schedules often arise in the context of ILITs and multi generational trusts.
Schedule W - Continuation Sheet
Schedule W is not a standalone schedule for tax content. It is a continuation sheet used when:
- Additional space is needed for any Schedule A to O item
- More lines are required for assets, deductions, debts or similar items
Each Schedule W must relate to one parent schedule only, and totals are then carried forward to that schedule.
How EstateMin Simplifies Asset Classification and Document Management for Form 706
EstateMin is built around how you actually work on estates, not how the form looks on paper.
Within the platform, you can tag each asset with the correct Form 706 schedule, from A to I and any relevant deduction schedule. That means the asset is in the right bucket from day one. You can also attach supporting documents directly to each asset, such as appraisals, statements, valuations, beneficiary designations and trust or policy documents.
Instead of digging through folders, emails or different parts of your case management system, every asset and all related documents sit together in one place. Executors or clients can upload statements and documents through the secure client portal, and EstateMin will organise and sync them into your case management system.
The result is simple: less chasing, less double work, and a cleaner set of information when it is time to prepare Form 706.