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Instructions for

Department of the Treasury

Internal Revenue Service

Form 706-QDT

(Rev. December 2008)

U.S. Estate Tax Return for Qualified Domestic Trusts

Section references are to the Internal

designated one U.S. trustee as the

a. Distributions of income to the

designated filer.

Revenue Code unless otherwise noted.

surviving spouse, and

b. Any distributions made to the

If there is more than one trustee for

surviving spouse on account of

any single trust, each trustee is liable

hardship.

for filing the return and paying the tax.

2. The death of the surviving

What’s New

If there is a designated filer, the

spouse.

trustee must still complete a separate

3. The failure of the trust to qualify

On page 1 of Form 706-QDT, we have

Schedule B of Form 706-QDT for each

as a QDOT.

revised the paid preparer signature

trust for which he or she is the trustee

block. Paid preparers must sign the

and provide the completed Schedule B

Hardship distribution. A distribution

return and furnish the preparer

to the designated filer at least 60 days

of principal is treated as made on

information requested in the Paid

before the due date for filing Form

account of hardship if it is made to the

Preparer’s Use Only area.

706-QDT.

spouse from the QDOT in response to

an immediate and substantial financial

Designated Filer

need relating to the spouse’s health,

General Instructions

If the surviving spouse is the

maintenance, education, or support, or

beneficiary of more than one QDOT

the health, maintenance, education, or

from a single decedent, and the

support of any person that the surviving

Purpose of Form

decedent’s executor has made such a

spouse is legally obligated to support.

The trustee or designated filer

designation, then the designated filer

Decedent. In these instructions,

(described below) of a qualified

selected by the executor is liable for

decedent means the grantor of the

domestic trust (QDOT) uses Form

filing the return and paying the tax for

QDOT on whose estate tax return the

706-QDT to figure and report the estate

all QDOTs. This designation can be

executor makes the QDOT election.

tax due on:

made on either the decedent’s estate

•

Certain distributions from the QDOT,

Surviving spouse. In these

tax return or the first Form 706-QDT

•

The value of the property remaining

instructions, surviving spouse means

that is timely filed.

in the QDOT on the date of the

the individual who is both the surviving

In this case, the trustee of each

surviving spouse’s death, and

spouse of the decedent and also the

•

QDOT is responsible for completing

The corpus portion of certain annuity

beneficiary of the decedent’s QDOT.

Schedule B of Form 706-QDT for his

payments.

or her trust and giving it to the

When To File

Under certain circumstances, the

designated filer.

trustee/designated filer uses Form

Form 706-QDT is an annual return.

706-QDT to notify the IRS that the trust

Definitions

Generally, the return to report

is exempt from future filing because the

distributions is due on or after January

Qualified domestic trust. A qualified

surviving spouse has become a U.S.

1 but not later than April 15 of the year

domestic trust (QDOT) is any trust that

citizen and meets the requirements

following any calendar year in which a

qualifies for an estate tax marital

listed under Line 4. Spousal election on

taxable event occurred or a distribution

deduction under section 2056 and also

page 4.

was made on account of hardship.

meets all of the following requirements.

The QDOT rules apply only in those

•

The trust instrument requires that at

However, if you are filing the return

situations where a decedent’s surviving

least one trustee be either a U.S.

because of the death of the surviving

spouse is not a U.S. citizen.

citizen or a domestic corporation.

spouse, you must file it within 9 months

•

The trust instrument requires that no

following the date of death. You must

Who Must File

distribution of corpus from the trust may

also report on that return all reportable

Either the trustee or the designated

be made unless the trustee has the

distributions made during the calendar

filer, as described below, must file Form

right to withhold from the distribution

year in which the surviving spouse died.

706-QDT for any year in which the

the QDOT tax imposed on the

This rule may result in a return being

QDOT has a taxable event (defined

distribution.

due before April 15. For example, if the

•

below) or makes a distribution on

The QDOT election under section

surviving spouse died on June 12,

account of hardship.

2056A(d) has been made for the trust

2008, Form 706-QDT would be due

by the executor of the estate on the

March 12, 2009, and must include all

Trustee

decedent’s estate tax return.

reportable distributions made during

•

The requirements of all applicable

If the surviving spouse is the

2008.

regulations have been met.

beneficiary of only one QDOT, the

If the trust ceases to qualify as a

trustee of that QDOT is liable for filing

Taxable event. A taxable event is any

QDOT, you must file Form 706-QDT

Form 706-QDT and paying the tax.

of the following.

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

include on that return any reportable

beneficiary of more than one QDOT,

the death of the surviving spouse,

distributions made during the calendar

unless the decedent’s executor

except:

year of the failure to qualify.

Cat. No. 12384F

Instructions For Form 706-Qdt - U.s. Estate Tax Return For Qualified Domestic Trusts - 2008

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