Updated October 18, 2026. Quick answer: Schedule H is for property over which the decedent held a general power of appointment, a power created by someone else. It is filed when the Part IV question on powers of appointment is answered yes. The records are the trust or will that created the power and any document that exercised or released it.
What goes on Schedule H
“Complete Schedule H (Form 706) and file it with the return if you answered” yes to the form’s line 14, which asks “Did the decedent ever possess, exercise, or release any general power of appointment?”
The instructions say to include “The value of property for which the decedent possessed a general power of appointment (defined later) on the date of the decedent’s death.” They also include property where the power was “exercised or released before death by disposing of it in such a way that if it were a transfer of property owned by the decedent, the property would be includible in the decedent’s gross estate as a transfer with a retained life estate, a transfer taking effect at death, or a revocable transfer”. Those three categories are explained on the Schedule G page.
Every schedule opens with the same 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.” It then points the reader to the instructions for Part V, item 10, which explain how to estimate and report the value of those assets.
What counts as a power of appointment
“A power of appointment determines who will own or enjoy the property subject to the power and when they will own or enjoy it.” “The power must be created by someone other than the decedent.” The instructions add that it “includes all powers that are, in substance and effect, powers of appointment regardless of how they are identified”.
Some powers are not covered: “a power to amend only administrative provisions of a trust that cannot substantially affect the beneficial enjoyment of the trust property or income is not a power of appointment.” “A power to manage, invest, or control assets, or to allocate receipts and disbursements, when exercised only in a fiduciary capacity, is not a power of appointment.”
General powers and their exceptions
“A general power of appointment is a power that is exercisable in favor of the decedent, the decedent’s estate, the decedent’s creditors, or the creditors of the decedent’s estate, except the following.”
The first exception is “A power to consume, invade, or appropriate property for the benefit of the decedent that is limited by an ascertainable standard relating to health, education, support, or maintenance of the decedent.” The second is a power exercisable only in conjunction with “The creator of the power” or “A person who has a substantial interest in the property subject to the power, which is adverse to the exercise of the power in favor of the decedent.”
For a partial power, “figure the amount included in the gross estate by dividing the value of the property by the number of persons (including the decedent) in favor of whom the power is exercisable.”
Releases, lapses and dates
“With the above exceptions, property subject to a power of appointment is not includible in the gross estate if the decedent released the power completely and the decedent held no interest in or control over the property.”
On a lapse: “the lapse is treated as a release only to the extent that the value of the property that could have been appointed by the exercise of the lapsed power is more than the greater of $5,000 or 5% of the total value”. On timing, “Generally, a power of appointment created by will is considered created on the date of the testator’s death.”
Where the number comes from
The values come from the trust, will or other instrument and from the records of the property itself. The instructions say “If the decedent ever possessed a power of appointment, attach a certified or verified copy of the instrument granting the power and a certified or verified copy of any instrument by which the power was exercised or released.” The estate’s income tax return is covered on the Form 1041 for estates page, and general terms are on the estate planning glossary page.
Where it goes next
Each schedule feeds one item of Part V, the recapitulation, on the form. The form’s caption for this schedule reads “Total powers of appointment. Schedule H, line 4”. The Part V instructions list which schedules to attach: “Schedule H (Form 706), if you answered” The same instructions say “If the gross estate does not contain any assets of the type specified by a given item, enter zero for that item.” They add “Entering zero for any of items 1 through 9 is a statement by the executor, made under penalties of perjury, that the gross estate does not contain any includible assets covered by that item.”
For the alternate value column, the Part V instructions say not to enter amounts there “unless you elected alternate valuation on Part III, line 1.” That election is explained on the Part III elections page and the alternate valuation date page, and the recapitulation is covered on the Parts 4 and 5 page. The return itself is explained on the Form 706 page.
Edition and line numbers
This page reads the Form 706 revision dated August 2025 and the Instructions for Form 706 revision dated July 2026. They are the current files irs.gov served on 2026-10-18, byte-identical to the archived copies used here. The instructions state “For decedents dying after December 31, 2025.” The form itself says “To be filed for decedents dying after December 31, 2024.” Check the revision date printed on your Form 706 and the instruction edition for the year of death, and use the line numbers on that revision.
Common mistakes
- Treating a power the decedent created as a power of appointment. The instructions say “The power must be created by someone other than the decedent.”
- Counting an administrative or fiduciary power. The instructions say “A power to manage, invest, or control assets, or to allocate receipts and disbursements, when exercised only in a fiduciary capacity, is not a power of appointment.”
- Ignoring a power that lapsed or was released before death. The instructions say the property is included when the decedent “exercised or released before death by disposing of it in such a way” that it would be includible under the retained-interest rules.
Related: Form 706, Form 1041 for estates, and estate planning glossary.
Sources
- Instructions for Form 706 (Rev. July 2026): https://www.irs.gov/pub/irs-pdf/i706.pdf
- Form 706 (Rev. August 2025), United States Estate (and Generation-Skipping Transfer) Tax Return: https://www.irs.gov/pub/irs-pdf/f706.pdf
Read from the IRS documents linked above on October 18, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.