Updated October 18, 2026. Quick answer: Schedule T supports the election to value farm and closely held business property at its special-use value, and Schedule U supports the conservation easement exclusion. Each is filed only if the election is made, and the entries come from appraisals, deeds and easement records.
Schedule T is the renamed Schedule A-1
The Reminders in the instructions say: “Schedule A-1 (Form 706) was renamed to Schedule T (Form 706).” “The functionality of this schedule is the same and should be completed and attached to Form 706, as necessary.” The Schedule T section repeats it: “Schedule T (Form 706) was previously named Schedule A-1 (Form 706) in year 2024 and earlier.” The return is explained on the Form 706 page, and the election question on Form 706 Part III.
Schedule T: when it is filed
The form asks, on Part III, “Do you elect special-use valuation?” and says “you must complete and attach Schedule T (Form 706)”. The instructions say “Schedule T (Form 706) is used to report the additional information that must be submitted to support this election.” “In order to make a valid election, you must complete Schedule T (Form 706) and attach all of the required statements and appraisals.” “If you elect special-use valuation for the estate tax, you must also elect special-use valuation for the GST tax and vice versa.” The GST side is on the Schedule R page.
Schedule T: protective election and Parts I to IV
Part I covers the protective election: “To make the protective election described in the Instructions for Form 706, Part III, line 2, you must complete the following.” “Check the box in Part I.” “Complete Part II, line 1, and columns (a), (b), and (c) of lines 10 and 14.” “Completing Schedule T (Form 706) as described above constitutes a Notice of Protective Election as described in Regulations section 20.2032A-8(b).”
Part II, line 18: “Because the special-use valuation election creates a potential tax liability for the recapture tax of section 2032A(c), you must list each person who receives an interest in the specially valued property on Schedule T (Form 706).” “for each skip person who receives an interest in specially valued property, you must attach a calculation of the total GST tax savings attributable to that person’s interests in specially valued property.”
Part III is the agreement: “The agreement to special valuation is required under sections 2032A(a)(1)(B) and (d)(2) and must be signed by all parties who have any interest in the property being valued based on its qualified use as of the date of the decedent’s death.”
Schedule T: the checklist
“To have a valid special-use valuation election under section 2032A, you must file, in addition to the federal estate tax return, (a) a notice of election” and a signed agreement. The instructions supply a checklist: “The checklist is for your use only. Do not file it with the return.” One of its questions is “Does the notice of election include a statement that the decedent and/or a member of the decedent’s family has owned all of the specially valued property for at least 5 years of the 8 years immediately preceding the date of the decedent’s death?” “Any election made under section 2032A will not be valid unless a properly executed agreement” is filed with the return.
Schedule U: the election
“Under section 2031(c), you may elect to exclude a portion of the value of land that is subject to a qualified conservation easement.” “You make the election by filing Schedule U (Form 706) with all of the required information and excluding the applicable value of the land that is subject to the easement on Form 706, Part V, item 12.” “You must make the election on a timely filed Form 706, including extensions.” “Once made, the election is irrevocable.” The cap is stated as “The exclusion is the lesser of:” the applicable percentage of the land value after certain reductions, or “$500,000”.
Schedule U: qualified land and easement
“Land may qualify for the exclusion if all of the following requirements are met.” “The decedent or a member of the decedent’s family must have owned the land for the 3-year period ending on the date of the decedent’s death.” “The land is located in the United States or one of its territories.” “Members of the decedent’s family include the decedent’s spouse; ancestors; lineal descendants of the decedent, of the decedent’s spouse, and of the parents of the decedent; and the spouse of any lineal descendant.”
“A qualified conservation easement is one that would qualify as a qualified conservation contribution under section 170(h).” It must be a contribution “Of a qualified real property interest,” “To a qualified organization, and” “Exclusively for conservation purposes.” On ownership through an entity: “if the decedent owned (directly or indirectly) at least 30% of the entity”.
Schedule U: lines
Line 1: “If the land is reported as one or more item numbers on a Form 706 schedule, simply list the schedule, line numbers, and item numbers.” Line 4: “Enter on this line the gross value at which the land was reported on the applicable asset schedule on this Form 706.” “Report the estate tax value even if the easement was granted by the decedent (or someone other than the decedent) prior to the decedent’s death.”
Line 7: “You must reduce the land value by the value of any development rights retained by the donor in the conveyance of the easement.”
Line 10: “Enter the total value of the qualified conservation easements on which the exclusion is based.” “Use the value of the easement as of the date of death, even if the easement was granted prior to the date of death.” “Explain how this value was determined and attach copies of any appraisals.” “Reduce the reported value of the easement by the amount of any consideration received for the easement.”
Line 15: “If a charitable contribution deduction for this land has been taken on Schedule O (Form 706), enter the amount of the deduction here.” That deduction is covered on the Schedule O page. A separate computation may be needed: “If the date of contribution and the estate tax values are the same, you do not need to do a separate computation.”
Where the number comes from
For Schedule T the figures come from written appraisals of the property, the family ownership and use history, and the signed agreement. For Schedule U they come from the value already reported on the asset schedule, the easement document and its appraisal. For planning background, see the charitable bequests page.
Where it goes next
Part V of the form captions the Schedule U total as “Total qualified conservation easement exclusion. Schedule U, line 20”. The next item reads “Total gross estate less exclusion. Subtract item 12 from item 11. Enter here and on Part II, line 1”. See Form 706 Parts IV and V and Form 706 Part II lines 1 to 8. The Schedule T election is the Part III line 2 election on the form, and the GST treatment of specially valued property is on the Schedule R 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
- Looking for Schedule A-1. The instructions say “Schedule A-1 (Form 706) was renamed to Schedule T (Form 706).”
- Filing the notice of election without the agreement. The instructions say “Any election made under section 2032A will not be valid unless a properly executed agreement” is filed with the return.
- Missing the filing window for the easement exclusion. The instructions say “You must make the election on a timely filed Form 706, including extensions.”
Related: Form 706, estate planning glossary, charitable bequests, 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.