||When a taxable beneficiary will receive a portion of the residuary estate and the executor does not know which residuary estate assets will be used to satisfy the beneficiary’s portion, here's how to report all the residuary estate assets on the beneficiary’s Form 8971, Schedule A in BNA 706 Preparer.
All assets not specifically allocated to a beneficiary are assumed to be part of the residuary estate [unless the “Exclude from Residuary Fund (Used in the Interrelated Calculation)" checkbox is selected in the Data Entry pane for an asset].
All of the assets in the residuary estate are carried to a taxable beneficiary’s Form 8971, Schedule A if the number entered in the Residuary Percent field is greater than zero (0). (This field is located in the Data Entry pane for the beneficiary in Form 706, Part 4, Line 5.) In order to enter the Residuary Percent, you will also need to choose Calculation for the field “Select an entry method” in the Data Entry pane for the beneficiary in Form 706, Part 4, Line 5.
(See also topic: “How do I link a specific asset to a beneficiary’s Form 8971, Schedule A?”)