Updated October 18, 2026. Quick answer: Schedule I is where the executor lists annuities that continue to someone after the decedent’s death. It is filed with Form 706 when the Part IV annuity question is answered Yes. The facts come from the annuity contract or plan, and the total carries to the gross estate recap in Part V.
When Schedule I is filed
The Part IV question on the form reads “Was the decedent, immediately before death, receiving an annuity described in the” General paragraph of the instructions for Schedule I, or a private annuity, and says “you must complete and attach Schedule I (Form 706)”. The instructions tell the executor what to list: “every annuity that meets all of the conditions under General, later”, and every annuity described in the older approved plan paragraphs, “even if the annuities are wholly or partially excluded from the gross estate”. The return itself is explained on the Form 706 page, and the Part IV questions are covered on the Form 706 Parts IV and V page.
Which annuities belong on the schedule
The instructions open with a scope sentence: “These rules apply to all types of annuities, including pension plans, individual retirement arrangements (IRAs), purchased commercial annuities, and private annuities.” They then give the general test: “In general, you must include in the gross estate all or part of the value of any annuity that meets the following requirements.”
The requirements are listed one by one. The annuity must be one that is “receivable by a beneficiary following the death of the decedent and by reason of surviving the decedent”. It must be “under a contract or agreement entered into after March 3, 1931”. It must have been payable to the decedent, or the decedent must have had the right to receive it, “for the decedent’s life or for any period not ascertainable without reference to the decedent’s death or for any period that did not in fact end before the decedent’s death”. And “The contract or agreement is not a policy of insurance on the life of the decedent.”
Two limits are stated in plain words. “An annuity contract that provides periodic payments to a person for life and ceases at the person’s death is not includible in the gross estate.” “Social security benefits are not includible in the gross estate even if the surviving spouse receives benefits.” The instructions also define a private annuity: “A private annuity is an annuity issued by a party not engaged in the business of writing annuity contracts”.
When the decedent paid only part of the price
The instructions say: “If the decedent contributed only part of the purchase price of the contract or agreement, include in the gross estate only that part of the value of the annuity receivable by the surviving beneficiary that the decedent’s contribution to the purchase price of the annuity or agreement bears to the total purchase price.” Their own example reads: “if the value of the survivor’s annuity was $20,000 and the decedent had contributed 75% of the purchase price of the contract, the amount includible is $15,000”. Employer money counts as the decedent’s when it was paid because of the job: “contributions made by the decedent’s employer to the purchase price of the contract or agreement are considered made by the decedent if they were made by the employer because of the decedent’s employment”.
Older approved plans
A separate group of rules can exclude part or all of an annuity. The instructions introduce them with “The following rules relate to whether part or all of an otherwise includible annuity may be excluded.” They add “These rules have been repealed and apply only if the decedent either” qualifies under one of two descriptions, one of which is that the decedent “Had separated from service before January 1, 1985, and did not change the form of benefit before death”. The plans covered are described in paragraphs (a) through (h) of the instructions, in two groups: “Pension, profitsharing, stock bonus, and other similar plans.” and “IRAs and retirement bonds.” If you are unsure whether a plan qualifies, the instructions say “you may obtain that information from the IRS office where the employer’s principal place of business is located”.
Line 1: lump-sum distribution election
Line 1 carries its own warning: “The following rules have been repealed and apply only if the decedent” meets one of the two descriptions the instructions give. The rule itself is that “Generally, the entire amount of any lump-sum distribution is included in the decedent’s gross estate.” The instructions then state the special rule: “all or part of a lump-sum distribution from a qualified (approved) plan will be excluded if the lump-sum distribution is included in the recipient’s income for income tax purposes.” They attach a condition: “on line 1 and attach the names, addresses, and identifying numbers of the recipients of the lump-sum distributions”.
Where the number comes from
The instructions on describing each entry say: “In describing an annuity, give the name and address of the grantor of the annuity. Specify if the annuity is under an approved plan.” A short table under the heading “How To Complete Schedule I (Form 706)” then lists what extra detail to add for each kind of annuity. The records to start from are the annuity contract or plan documents and the payer’s statements. The instructions define the key terms: “An annuity or other payment was payable to the decedent if, at the time of death, the decedent was in fact receiving an annuity or other payment”, and “The decedent had the right to receive an annuity or other payment if, immediately before death, the decedent had an enforceable right to receive payments at some time in the future”.
Where it goes next
The Part V recap on the form carries the schedule total on item 9, captioned “Total annuities. Schedule I, line 5”. Item 11 then reads “Total gross estate. Add items 1 through 10”. See Form 706 Part II lines 1 to 8 for how the gross estate feeds the tax computation. If a joint and survivor annuity is involved, the instructions point to the marital deduction rules: “For a discussion regarding the QTIP treatment of certain joint and survivor annuities, see the instructions for Schedule M (Form 706), line 3.” That is covered on the Schedule M page. An older rule is also worth knowing for a family estate: the instructions say “An annuity or other payment that is not includible in the decedent’s or the survivor’s gross estate as an annuity may still be includible under some other applicable provision of the law.” For a plain-language list of the terms used here, see the estate planning glossary and the estate planning checklist.
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
- Leaving off an annuity because it looks excluded. The instructions say to list every qualifying annuity “even if the annuities are wholly or partially excluded from the gross estate”.
- Listing the full value when the decedent paid only part of the price. The rule is to “include in the gross estate only that part of the value of the annuity receivable by the surviving beneficiary” that matches the decedent’s share of the purchase price.
- Treating a life-only payment stream as a survivor annuity. The instructions say “An annuity contract that provides periodic payments to a person for life and ceases at the person’s death is not includible in the gross estate.”
Related: Form 706, estate planning glossary, estate planning checklist, and estate tax calculator.
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.