Instructions For Form 706-Qdt - Department Of The Treasury (Page 3 of 6) in pdf

of credit listing the assets that will fund

Attach each Schedule B to the return

Line 1. Alternate valuation. Unless

the QDOT, the values of the assets,

when you file it.

you elect at the time you file this return

and whether any exclusions for a

to adopt alternate valuation under

If there is not enough space on a

personal residence are being claimed.

section 2032, then you must value all

schedule to list all the items, attach an

property of all trusts listed on Schedule

additional sheet of the same size to the

Additional Information

A, Part III on the date of the surviving

back of the schedule.

spouse’s death.

For more information, including

Rounding off to Whole

additional requirements for a bond and

Note. You may not elect alternate

letter of credit, details on the exclusion

Dollars

valuation for any property reported on

of a personal residence, rules on the

Schedule A, Parts I and II.

You may show the money items on the

disallowance of the marital deduction

return and accompanying schedules as

for substantial undervaluation of QDOT

You may not elect alternate

whole dollars. To do so, drop any

property, rules regarding foreign real

valuation unless the election will

amount less than 50 cents and

property, and certain annual reporting

decrease both the value of the

increase any amount from 50 cents

requirements (concerning ownership of

Schedule A, Part III property, and the

through 99 cents to the next higher

foreign real property, cessation of use

net tax due on the return.

dollar.

of a personal residence, and

A designated filer filing for multiple

look-through rules applied to the

trusts must make this election for all of

ownership of foreign real property), see

the Schedule A, Part III property in all

Specific Instructions

Regulations section 20.2056A-2(d).

of the trusts, taken as a whole. The

election cannot be made unless the

How To Complete Form

Part I—General

requirements are met for all of the

706-QDT

property.

Information

You elect alternate valuation by

Trustee Filing the Return

Line 1b. Enter the taxpayer

checking “Yes” on line 1 and filing Form

identification number (TIN) of the

If the trustee is filing the complete

706-QDT. Once made, the election is

surviving spouse. The TIN is the social

return, prepare it in the following order:

irrevocable.

security number (SSN) or individual

1. Part I — General Information on

taxpayer identification number (ITIN).

If you elect alternate valuation, you

page 1;

must value all of the property to which

If trustee files entire return — Lines

2. Part II — Elections by the Trustee/

the election applies as of the applicable

2a, 2b, and 2c. If the trustee is filing

Designated Filer on page 1;

date as follows.

the entire return, enter the trustee’s

3. All of Schedule B (but only lines

1. Any property distributed, sold,

information on lines 2a, 2b, and 2c.

1a and 1b of Part I);

exchanged, or otherwise disposed of by

4. Schedule A;

Line 2b. If the trustee/designated filer

any method within 6 months after the

5. Part III — Tax Computation on

is an individual, enter his or her SSN.

surviving spouse’s death is valued on

page 1.

Otherwise, enter the employer

the date of distribution, sale, exchange,

identification number (EIN) of the

or other disposition, whichever occurs

Enter only the totals from Parts II

trustee/designated filer.

first. Value the property on the date title

through VI of Schedule B in the

Line 2c. Enter the address at which

passes as a result of the sale,

corresponding “Total” lines of

you wish to receive correspondence

exchange, or other disposition.

Schedule A.

from the IRS regarding this return. This

2. Any property not distributed, sold,

must be an address for the designated

Trustee Completing

exchanged, or otherwise disposed of

filer, or if the trustee is filing the return,

within the 6-month period is valued on

Schedule B Only

one of the individual trustees who is a

the date 6 months after the date of the

If a designated filer will file the return,

U.S. citizen or a trustee that is a

surviving spouse’s death.

the trustee must complete all applicable

domestic corporation.

3. Any property that is “affected by

parts of Schedule B for his or her

mere lapse of time” is valued as of the

Line 4a. Enter the name of the

respective trust and provide it to the

date of the surviving spouse’s death.

decedent on whose estate tax return

designated filer at least 60 days before

However, you may change the date of

the QDOT election was made.

the due date for filing Form 706-QDT.

death value to account for any change

Line 4b. Enter the SSN of the

in value that is not due to “mere lapse

Designated Filer Filing the

decedent or, if applicable, the number

of time” on the date of its distribution,

previously assigned to the decedent’s

Return

sale, exchange, or other disposition.

estate by the service center.

The designated filer must receive a

completed Schedule B from the trustee

For additional details, see Part 3 —

Part II—Elections by the

of every QDOT that has had a

Elections by the Executor in the

reportable event or a hardship

Trustee/Designated Filer

separate Instructions for Form 706.

distribution during the tax year. The

If this return is being filed because of

Line 2. Special-use valuation of

designated filer then summarizes these

the death of the surviving spouse, and

section 2032A. Under section 2032A,

on Schedule A.

any property remaining in the QDOT at

you may elect to value certain farm and

Complete the return in the following

that time is includible in the estate of

closely held business real property at

order:

the surviving spouse (or would be

its farm or business use value rather

1. Part I — General Information on

includible if the surviving spouse had

than its fair market value. You may

page 1;

been a U.S. citizen or resident), then

elect both special-use valuation and

2. Part II — Elections by the Trustee/

the trustee/designated filer may elect to

alternate valuation. To elect this

Designated Filer on page 1;

apply certain estate tax benefits on this

valuation, you must check “Yes” on line

3. Schedule A;

return, provided the estate of the

2 and complete and attach Schedule

4. Part III — Tax Computation on

surviving spouse would be eligible for

A-1 of Form 706 and its required

page 1.

these benefits.

additional statements.

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Instructions For Form 706-Qdt - Department Of The Treasury Page 3

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