Instructions for REV-1649 Schedule O
REV-1649 EX+ (02-16)                                               Deferral / Election of Spousal Trusts

                                      original testator’s date of death,REV-1514, Schedule K and REV-
GENERAL INFORMATIONwhichever is less.                                          1647, Schedule M can be used to
                                                                          determine the value of the surviving
PURPOSE OF SCHEDULESection 9113(a) benefits the surviving
Use REV-1649 Schedule O to report allspouse because the payment of tax onspouse’s interest.
sole use trusts.                      the decedent’s assets is postponed untilThe trust or similar arrangement for
                                      the death of the surviving spouse. Inwhich an election to tax is being made
                                      situations where the surviving spousemust be clearly identified. The name of
FORM INSTRUCTIONS
                                      must rely on the trust assets for main-the trust, or the paragraph or item
Estate of                             tenance income, the trust assets arenumber of the instrument in which its
Enter the complete name of the estatenot depleted by the payment of tax. In-terms are set forth should be entered
as shown on REV-1500, Pennsylvaniastead the assets are preserved in orderon Schedule O, Part B. 
Inheritance Tax Return.to provide the maximum income, and
                                      principal should an invasion of the prin-IMPORTANT:Values reported
File Number                           cipal, if the instrument so authorizes,on this schedule must be consis-
Enter the file number of the estate become necessary for the survivingtent with REV-1514, Schedule K and/or
assigned by the Register of Wills asspouse’s benefit. Similarly, when theREV-1647, Schedule M. 
shown on REV-1500, Pennsylvania trust assets are comprised of real 
Inheritance Tax Return.               property and limited cash assets, theDescription
                                      tax does not impose a burden whichThe value of all assets should be the fair
                                      would necessitate the sale of the realmarket value on the date of the dece-
GENERAL INSTRUCTIONSproperty, which is often the residence ofdent’s death net of any deductions allo-
Part A  Deferring Statementthe surviving spouse.cable against the interests passing to
If the estate is choosing to defer the tax                                the trust or similar arrangement.
on the trust, the check box must bePart B  Election to Tax Amounts
marked indicating they have read theIf the estate is electing to pay the taxReport the value of a trust or similar
statement and acknowledge the depart-on the sole use trust, the check boxarrangement that passes to the surviv-
ment’s Statement of Policy set forth atmust be marked indicating this election. ing spouse for the spouse’s sole use
                                                                          during his or her entire lifetime for
61 PA Code Ch. 94 § 94.3.The estate can elect to include such awhich a Section 9113(a) election is
Section 9113(a) of the Inheritance &trust, or similar arrangement, or portionmade. The value as calculated on REV-
Estate Tax Act of 1991, as amended bythereof, as a taxable transfer in the
                                                                          1514, Schedule K and REV-1647,
Act 23 of 2000 provides for the inclu-transferor’s, or first decedent spouse’s
                                                                          Schedule M, net of any deductions allo-
sion of a trust or similar arrangementestate. The election to tax in the estate
                                                                          cable to the surviving spouse’s interest,
that benefits only the surviving spouseof the first decedent spouse can be 
during the spouse’s entire lifetime as aadvantageous for tax purposes if thereshould be listed. If the election is made
taxable transfer in the estate of the sur-are sufficient cash assets to pay the taxfor more than one trust, please specifi-
viving spouse and not as a taxablewithout imposing a burden on the cally identify the individual trusts.
transfer in the transferor’s, or firstsurviving spouse. Although there areTotal
decedent spouse’s, estate. The tax on anumerous considerations, including Total all items and enter value here.
qualified trust or life estate arrange-estate tax consequences, it may be Enter the value on Line 13, Page 2 of
ment is not due until the death of theadvantageous to make the election toREV-1500.
second spouse, at which time it tax in the first estate since the value of
becomes fully taxable in his or her es-the surviving spouse’s interest in the  NOTE:If you are completing 
tate at the rate(s) applicable to the trust or sim-ilar arrangement is subjectthis schedule, fill in oval “Defer-
remainder beneficiary(ies) as of theto tax at the spousal rate of zero ral/Election of Spousal Trusts” on REV-
surviving spouse’s date of death or thepercent.                           1500.

www.revenue.pa.gov                                                                         REV-16491