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interest property. A partial election must

3. That meets the requirements of

Line 1

relate to a fractional or percentile share

any applicable regulations; and

If property passes to the surviving

of the property so that the elective part

4. For which the executor has made

spouse as the result of a qualified

will reflect its proportionate share of the

an election on the estate tax return of

disclaimer, check “Yes” and attach a

increase or decline in the whole of the

the decedent.

copy of the written disclaimer required

property when applying section 2044 or

by section 2518(b).

2519. Thus, if the interest of the

Note. For trusts created by an

surviving spouse in a trust (or other

Line 3

instrument executed before November

property in which the spouse has a

5, 1990, paragraphs 1 and 2 above will

Section 2056(b)(7) creates an

qualified life estate) is qualified

be treated as met if the trust instrument

automatic QTIP election for certain joint

terminable interest property, you may

requires that all trustees be individuals

and survivor annuities that are

make an election for a part of the trust

who are citizens of the United States or

includible in the estate under section

(or other property) only if the election

domestic corporations.

2039. To qualify, only the surviving

relates to a defined fraction or

spouse can have the right to receive

percentage of the entire trust (or other

You make the QDOT election simply

payments before the death of the

property). The fraction or percentage

by listing the qualified domestic trust or

surviving spouse.

may be defined by means of a formula.

the entire value of the trust property on

The executor can elect out of QTIP

Schedule M and deducting its value.

Election to Deduct Qualified

treatment, however, by checking the

You are presumed to have made the

Terminable Interest Property Under

“Yes” box on line 3. Once made, the

QDOT election if you list the trust or

Section 2056(b)(7). If a trust (or other

election is irrevocable. If there is

trust property and insert its value on

property) meets the requirements of

more than one such joint and survivor

Schedule M. Once made, the election

qualified terminable interest property

annuity, you are not required to make

is irrevocable.

under section 2056(b)(7), and

the election for all of them.

a. The trust or other property is listed

If an election is made to deduct

If you make the election out of QTIP

on Schedule M and

qualified domestic trust property under

treatment by checking “Yes” on line 3,

b. The value of the trust (or other

section 2056A(d), provide the following

you cannot deduct the amount of the

property) is entered in whole or in part

information for each qualified domestic

annuity on Schedule M. If you do not

as a deduction on Schedule M,

trust on an attachment to this schedule:

elect out, you must list the joint and

survivor annuities on Schedule M.

then unless the executor specifically

1. The name and address of every

identifies the trust (all or a fractional

trustee;

Listing Property Interests on

portion or percentage) or other property

2. A description of each transfer

Schedule M

to be excluded from the election, the

passing from the decedent that is the

executor shall be deemed to have

source of the property to be placed in

List each property interest included in

made an election to have such trust (or

trust; and

the gross estate that passes from the

other property) treated as qualified

3. The employer identification

decedent to the surviving spouse and

terminable interest property under

number (EIN) for the trust.

for which a marital deduction is

section 2056(b)(7).

claimed. This includes otherwise

nondeductible terminable interest

If less than the entire value of the

The election must be made for an

trust (or other property) that the

property for which you are making a

entire QDOT trust. In listing a trust for

QTIP election. Number each item in

executor has included in the gross

which you are making a QDOT election,

sequence and describe each item in

estate is entered as a deduction on

unless you specifically identify the

Schedule M, the executor shall be

detail. Describe the instrument

trust as not subject to the election,

(including any clause or paragraph

considered to have made an election

the election will be considered made

number) or provision of law under

only as to a fraction of the trust (or

for the entire trust.

other property). The numerator of this

which each item passed to the surviving

spouse. If possible, show where each

fraction is equal to the amount of the

The determination of whether a trust

item appears (number and schedule)

trust (or other property) deducted on

qualifies as a QDOT will be made as of

Schedule M. The denominator is equal

on Schedules A through I.

the date the decedent’s Form 706 is

to the total value of the trust (or other

filed. If, however, judicial proceedings

In listing otherwise nondeductible

property).

are brought before the Form 706’s due

property for which you are making a

date (including extensions) to have the

QTIP election, unless you specifically

Qualified Domestic Trust

trust revised to meet the QDOT

identify a fractional portion of the trust

Election (QDOT)

requirements, then the determination

or other property as not subject to the

will not be made until the court-ordered

election, the election will be considered

The marital deduction is allowed for

changes to the trust are made.

made for all of the trust or other

transfers to a surviving spouse who is

property.

not a U.S. citizen only if the property

Election to Deduct Qualified

passes to the surviving spouse in a

Enter the value of each interest

Domestic Trust Property Under

qualified domestic trust (QDOT) or if

before taking into account the federal

Section 2056A. If a trust meets the

such property is transferred or

estate tax or any other death tax. The

requirement of a qualified domestic

irrevocably assigned to a QDOT before

valuation dates used in determining the

trust under section 2056A(a), the return

the decedent’s estate tax return is filed.

value of the gross estate apply also on

is filed no later than 1 year after the

Schedule M.

A QDOT is any trust:

time prescribed by law (including

1. That requires at least one trustee

extensions), and the entire value of the

If Schedule M includes a bequest of

to be either an individual who is a

trust or trust property is listed and

the residue or a part of the residue of

citizen of the United States or a

entered as a deduction on Schedule M,

the decedent’s estate, attach a copy of

domestic corporation;

then unless the executor specifically

the computation showing how the value

2. That requires that no distribution

identifies the trust to be excluded from

of the residue was determined. Include

of corpus from the trust can be made

the election, the executor shall be

a statement showing:

•

unless such a trustee has the right to

deemed to have made an election to

The value of all property that is

withhold from the distribution the tax

have the entire trust treated as qualified

included in the decedent’s gross estate

imposed on the QDOT;

domestic trust property.

(Schedules A through I) but is not a

-29-

Part Instructions

Instructions For Form 706 - United States Estate (And Generation-Skipping Transfer) Tax Return - 2011 Page 29

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