Updated October 18, 2026. Quick answer: Schedule M lists the property that passes from the decedent to a surviving spouse and for which a marital deduction is claimed. It is filed when Part V item 21 is used. The entries come from the will, trust, beneficiary and title records, and the total carries to Part V.
IRS estate-administration forms, read line by line: Form 706-NA Part IV.
When Schedule M is filed and what it is
“You must complete Schedule M (Form 706) and file it with the return if you claim a deduction on Form 706, Part V, item 21.” “The marital deduction is authorized by section 2056 for certain property interests that pass from the decedent to the surviving spouse.” “You may claim the deduction only for property interests that are included in the decedent’s gross estate”. The return is explained on the Form 706 page. A note covers a spouse who is not a citizen: “The marital deduction is generally not allowed if the surviving spouse is not a U.S. citizen.”
What may be listed
“Generally, you may list on Schedule M (Form 706) all property interests that pass from the decedent to the surviving spouse and are included in the gross estate.” The instructions limit this to interests the surviving spouse takes in specific ways, among them “As the decedent’s legatee, devisee, heir, or donee;” and “As a beneficiary of insurance on the decedent’s life;”. The full list in the instructions has six items.
What may not be listed
The instructions begin the exclusions with “Do not list the following on Schedule M (Form 706).” Among them are “The value of any property that does not pass from the decedent to the surviving spouse.” and “Property interests that are not included in the decedent’s gross estate.” and “Any property interest disclaimed by the surviving spouse.” Also excluded are “Nondeductible terminable interests (described later).”
Terminable interests
The instructions explain: “These are interests that will terminate or fail after the passage of time, or on the occurrence or nonoccurrence of a designated event.” “Examples are life estates, annuities, estates for terms of years, and patents.” The listing rule is “Unless you are making a QTIP election, do not enter a terminable interest on Schedule M (Form 706) if” both of two conditions hold, the first being “Another interest in the same property passed from the decedent to some other person for less than adequate and full consideration in money or money’s worth”.
The instructions illustrate it: “a spouse was devised real property for life, from the decedent, with remainder to the children.” “The life interest that passed to the spouse does not qualify for the marital deduction because it will terminate at the spouse’s death and the children will thereafter possess or enjoy the property.” Annuities themselves are covered on the Schedule I page.
The QTIP election
“You make the QTIP election simply by listing the QTIP on line 4 of Schedule M (Form 706) and inserting its value.” “You are presumed to have made the QTIP election if you list the property and insert its value on Schedule M (Form 706).” “The election is irrevocable.” The instructions define the property: “Qualified terminable interest property (QTIP) is property (a) that passes from the decedent, (b) in which the surviving spouse has a qualifying income interest for life, and (c) for which election under section 2056(b)(7) has been made.”
Two more points matter for the second return. “If you make this election, the surviving spouse’s gross estate will include the value of the QTIP.” And “If you file a Form 706 in which you do not make this election, you may not file a supplemental return to make the election unless you file the supplemental return on or before the due date for filing the original Form 706.” The due date is explained on the Form 706 due date and extension page.
The QDOT election
“The marital deduction is allowed for transfers to a surviving spouse who is not a U.S. citizen only if the property passes to the surviving spouse in a QDOT”, or is transferred or irrevocably assigned to one before the return is filed. “You make the QDOT election simply by listing the QDOT or the entire value of the trust property on Schedule M (Form 706) and deducting its value.” “Once made, the election is irrevocable.” “The election must be made for an entire QDOT trust.”
Lines 1, 3 and 4
Line 1 covers disclaimers: the instructions refer to property that passes “as the result of a qualified disclaimer” and say to “attach a copy of the written disclaimer required by section 2518(b)”.
Line 3 covers joint and survivor annuities: “Section 2056(b)(7)(C)(ii) creates an automatic QTIP election for certain joint and survivor annuities that are includible in the estate under section 2039.” “The executor can elect out of QTIP treatment” on line 3. “If you do not elect out, you must list the joint and survivor annuities on Schedule M (Form 706).”
Line 4 is the main list. “List each property interest included in the gross estate that passes from the decedent to the surviving spouse and for which a marital deduction is claimed.” “Describe the instrument (including any clause or paragraph number) or provision of law under which each item passed to the surviving spouse.” “Enter the value of each interest before taking into account the federal estate tax or any other death tax.” “The valuation dates used in determining the value of the gross estate also apply on Schedule M (Form 706).”
Lines 13a to 13c and the residue
“The total of the values listed on Schedule M (Form 706) must be reduced by the amount of the federal estate tax, the federal GST tax, and the amount of state or other death and GST taxes paid out of the property interest involved.” “If you enter an amount for state or other death or GST taxes on line 13b or 13c, identify the taxes and attach your computation of them.” For a residue gift: “If Schedule M (Form 706) includes a bequest of the residue or a part of the residue of the decedent’s estate, attach a copy of the computation showing how the value of the residue was determined.”
Where the number comes from, and attachments
The values come from the asset schedules the property was reported on, the will or trust instrument, and beneficiary and title records. The instructions require: “If you list property interests passing by the decedent’s will on Schedule M (Form 706), attach a certified copy of the order admitting the will to probate.”
Where it goes next
The Part V recap captions the total as “Total amount of property interests for which a marital deduction is being claimed. Schedule M, line 14”. It is one of the items added into “Tentative total allowable deductions. Add items 18 through 23. Enter here and on Part II, line 2”. See Form 706 Parts IV and V and Form 706 Part II lines 1 to 8 for those steps. The Schedule P instructions also refer back to this schedule on line 8 (see the Schedules P and Q page), and the GST rules for a QTIP trust are on the Schedule R page. For planning background, see the estate planning 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 copies this page was checked against. The form says “To be filed for decedents dying after December 31, 2024.” The instructions state “For decedents dying after December 31, 2025.” The instructions also explain how the schedules are packaged: “The schedules should be completed and attached to Form 706, as necessary.” 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
- Listing property that does not pass to the spouse or is not in the gross estate. The instructions bar “The value of any property that does not pass from the decedent to the surviving spouse.” and “Property interests that are not included in the decedent’s gross estate.”
- Listing property on line 4 without realizing it makes an election. The instructions say “You are presumed to have made the QTIP election if you list the property and insert its value on Schedule M (Form 706).”
- Forgetting the tax reduction on line 13. The rule is “The total of the values listed on Schedule M (Form 706) must be reduced by the amount of the federal estate tax, the federal GST tax, and the amount of state or other death and GST taxes paid out of the property interest involved.”
Related: Form 706, Form 706 due date and extension, estate planning, and estate planning glossary.
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Answer againSources
- 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.