Looking for a Form 706 Templates? Download it for free!

Instructions for

Department of the Treasury

Internal Revenue Service

Form 706-QDT

(Rev. April 2000)

U.S. Estate Tax Return for Qualified Domestic Trusts

Section references are to the Internal Revenue Code unless otherwise noted.

decedent, and the decedent's executor

surviving spouse of the decedent and also

General Instructions

has made such a designation, then the

the beneficiary of the decedent's QDOT.

designated filer selected by the executor

Purpose of Form

is liable for filing the return and paying the

When To File

tax for all QDTs. This designation can be

The trustee or designated filer of a

Form 706-QDT is an annual return.

made on either the decedent's estate tax

qualified domestic trust (QDOT) uses

Generally, the return to report

return or the first Form 706-QDT that is

Form 706-QDT to figure and report the

distributions is due on or after January 1

timely filed.

estate tax due on:

but not later than April 15 of the year

In this case, the trustee of each QDOT

following any calendar year in which a

Certain distributions from the QDOT;

is responsible for completing Schedule B

taxable event occurred or a distribution

The value of the property remaining in

of Form 706-QDT for his or her trust and

was made on account of hardship.

the QDOT on the date of the surviving

giving it to the designated filer.

However, if you are filing the return

spouse's death; and

because of the death of the surviving

The corpus portion of certain annuity

Definitions

spouse, you must file it within 9 months

payments.

following the date of death. You must also

Under certain circumstances, the

Qualified domestic trust

report on that return all reportable

trustee/designated filer uses Form

A qualified domestic trust is any trust that

distributions made during the calendar

706-QDT to notify the IRS that the trust is

qualifies for an estate tax marital

year in which the surviving spouse died.

exempt from future filing because the

deduction under section 2056 and also

This rule may result in a return being due

surviving spouse has become a U.S.

meets all of the following requirements:

before April 15. For example, if the

citizen and meets the requirements listed

surviving spouse died on June 10, 1999,

The trust instrument requires that at

in the instructions for line 4 on page 3.

Form 706-QDT would be due March 10,

least one trustee be either a U.S. citizen

The qualified domestic trust rules apply

2000, and must include all reportable

or a domestic corporation;

only in those situations where a

distributions made during 1999.

The trust instrument requires that no

decedent's surviving spouse is NOT a

If the trust ceases to qualify as a

distribution of corpus from the trust may

U.S. citizen.

QDOT, you must file Form 706-QDT

be made unless that trustee has the right

within 9 months of the date on which the

to withhold from the distribution the QDOT

Who Must File

trust ceased to qualify. You must include

tax imposed on the distribution;

on that return any reportable distributions

Either the trustee or the designated filer,

The QDOT election under section

made during the calendar year of the

as explained below, must file Form

2056A(d) has been made for the trust by

failure to qualify.

706-QDT for any year in which the QDOT

the executor of the estate on the

has a taxable event (as defined below)

You can request an extension of time

decedent's estate tax return; and

or makes a distribution “on account of

to file Form 706-QDT by writing to the

The requirements of all applicable

hardship.”

District Director or Service Center for your

regulations have been met.

filing location. You must explain the

Trustee

Taxable event

reason for the delay. Because there is no

If the surviving spouse is the beneficiary

automatic extension of time to file Form

A taxable event is any of the following:

706-QDT, you must request the extension

of only one QDOT, the trustee of that

Any distribution from a QDOT (and

in sufficient time to allow the IRS to

QDOT is liable for filing Form 706-QDT

certain annuity payments) before the

and paying the tax.

respond before the due date of the return.

death of the surviving spouse, except:

An extension of time to file does not

The trustee must also file Form

a. Distributions of income to the

706-QDT if the surviving spouse is the

extend the time to pay the tax.

surviving spouse, and

beneficiary of more than one QDOT,

b. Any distributions made to the

unless the decedent's executor

Where To File

surviving spouse on account of

designated one U.S. trustee as the

File Form 706-QDT with the same Internal

hardship;

designated filer.

Revenue Service Center where the Form

The death of the surviving spouse; and

If there is more than one trustee for any

706, United States Estate (and

The failure of the trust to qualify as a

single trust, each trustee is liable for filing

Generation-Skipping Transfer) Tax

QDOT.

the return and paying the tax.

Return, or Form 706-NA, United States

If there is a designated filer, the trustee

Estate (and Generation-Skipping

Decedent

must still complete a separate Schedule

Transfer) Tax Return, Estate of

In these instructions, “decedent” means

B of Form 706-QDT for each trust for

nonresident not a citizen of the United

the grantor of the QDOT on whose estate

which he or she is the trustee and provide

States, for the estate of the decedent was

tax return the executor makes the QDOT

the completed Schedule B to the

filed.

election.

designated filer at least 60 days before

the due date for filing Form 706-QDT.

Paying the Tax

Surviving spouse

Designated filer

In these instructions, surviving spouse

Generally, the QDOT estate tax is due by

means the individual who is both the

April 15 of the year following the calendar

If the surviving spouse is the beneficiary

year in which taxable distributions were

of more than one QDOT from a single

Cat. No. 12384F

Instructions For Form 706-Qdt - U.s. Estate Tax Return For Qualified Domestic Trusts - Internal Revenue Service - 2000

Related Articles

Related forms

Related Categories