Instructions For Form 706-Qdt printable pdf download

Instructions for

Department of the Treasury

Internal Revenue Service

Form 706-QDT

(Rev. November 2009)

U.S. Estate Tax Return for Qualified Domestic Trusts

Section references are to the Internal

before the due date for filing Form

account of hardship if it is made to the

706-QDT.

spouse from the QDOT in response to

Revenue Code unless otherwise noted.

an immediate and substantial financial

Designated Filer

need relating to the spouse’s health,

General Instructions

maintenance, education, or support, or

If the surviving spouse is the

the health, maintenance, education, or

beneficiary of more than one QDOT

Purpose of Form

support of any person that the surviving

from a single decedent, and the

spouse is legally obligated to support.

decedent’s executor has made such a

The trustee or designated filer

designation, then the designated filer

(described below) of a qualified

Decedent. In these instructions,

selected by the executor is liable for

domestic trust (QDOT) uses Form

decedent means the grantor of the

filing the return and paying the tax for

706-QDT to figure and report the estate

QDOT on whose estate tax return the

all QDOTs. This designation can be

tax due on:

executor makes the QDOT election.

•

made on either the decedent’s estate

Certain distributions from the QDOT,

•

tax return or the first Form 706-QDT

Surviving spouse. In these

The value of the property remaining

that is timely filed.

instructions, surviving spouse means

in the QDOT on the date of the

the individual who is both the surviving

surviving spouse’s death, and

In this case, the trustee of each

•

spouse of the decedent and also the

The corpus portion of certain annuity

QDOT is responsible for completing

beneficiary of the decedent’s QDOT.

payments.

Schedule B of Form 706-QDT for his

or her trust and giving it to the

Under certain circumstances, the

When To File

designated filer.

trustee/designated filer uses Form

Form 706-QDT is an annual return.

706-QDT to notify the IRS that the trust

Definitions

is exempt from future filing because the

Generally, the return to report

surviving spouse has become a U.S.

Qualified domestic trust. A qualified

distributions is due on or after January

citizen and meets the requirements

domestic trust (QDOT) is any trust that

1 but not later than April 15 of the year

listed under Part II, Line 4. Spousal

qualifies for an estate tax marital

following any calendar year in which a

election on page 4.

deduction under section 2056 and also

taxable event occurred or a distribution

meets all of the following requirements.

was made on account of hardship.

The QDOT rules apply only in those

•

The trust instrument requires that at

situations where a decedent’s surviving

However, if you are filing the return

least one trustee be either a U.S.

spouse is not a U.S. citizen.

because of the death of the surviving

citizen or a domestic corporation.

•

spouse, you must file it within 9 months

The trust instrument requires that no

Who Must File

following the date of death. You must

distribution of corpus from the trust may

Either the trustee or the designated

also report on that return all reportable

be made unless the trustee has the

filer, as described below, must file Form

distributions made during the calendar

right to withhold from the distribution

706-QDT for any year in which the

year in which the surviving spouse died.

the QDOT tax imposed on the

QDOT has a taxable event (defined

This rule may result in a return being

distribution.

•

below) or makes a distribution on

due before April 15. For example, if the

The QDOT election under section

account of hardship.

surviving spouse died on June 12,

2056A(d) has been made for the trust

2009, Form 706-QDT would be due

by the executor of the estate on the

Trustee

March 12, 2010, and must include all

decedent’s estate tax return.

•

reportable distributions made during

If the surviving spouse is the

The requirements of all applicable

2009.

beneficiary of only one QDOT, the

regulations have been met.

trustee of that QDOT is liable for filing

Taxable event. A taxable event is any

If the trust ceases to qualify as a

Form 706-QDT and paying the tax.

of the following.

QDOT, you must file Form 706-QDT

within 9 months of the date on which

The trustee must also file Form

1. Any distribution from a QDOT

the trust ceased to qualify. You must

706-QDT if the surviving spouse is the

(and certain annuity payments) before

beneficiary of more than one QDOT,

include on that return any reportable

the death of the surviving spouse,

distributions made during the calendar

unless the decedent’s executor

except:

year of the failure to qualify.

designated one U.S. trustee as the

a. Distributions of income to the

designated filer.

surviving spouse, and

Use Form 4768, Application for

b. Any distributions made to the

If there is more than one trustee for

Extension of Time To File a Return

surviving spouse on account of

any single trust, each trustee is liable

and/or Pay U.S. Estate (and

hardship.

for filing the return and paying the tax.

Generation-Skipping Transfer) Taxes,

2. The death of the surviving

to apply for an automatic 6-month

If there is a designated filer, the

spouse.

extension of time to file Form 706-QDT.

trustee must still complete a separate

3. The failure of the trust to qualify

Check the “Form 706-QDT” box in Part

Schedule B of Form 706-QDT for each

as a QDOT.

II of Form 4768.

trust for which he or she is the trustee

and provide the completed Schedule B

Hardship distribution. A distribution

Note. An extension of time to file does

to the designated filer at least 60 days

of principal is treated as made on

not extend the time to pay the tax.

Cat. No. 12384F

Instructions For Form 706-Qdt

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