Fillable Form Qec - Qualified Endowment Credit

The types of planned gifts that qualify for this credit are

What happens if I recover my charitable gift this

irrevocable contributions to a permanent endowment held

year?

by or for a tax exempt organization when the contribution

If a charitable gift is recovered in the current year, you will

uses any of the following:

have to include as income the amount previously deducted,

Charitable remainder unitrust. This is a trust in which

to the extent it reduced your individual income tax or

property is transferred and invested by the trustee

corporation license tax. You will also need to increase the

who each year pays a ﬁ xed percent of the unitrust

amount of tax due by the amount of the credit previously

value, revalued annually, to one or more private

allowed.

income beneﬁ ciaries for the life of beneﬁ ciaries, a

Part I. Gift Information

term of years, or both, with the remainder interest in

the trust transferring to, or for the use of the charity,

Line 1. In order to claim the qualiﬁ ed endowment credit,

or retained by the trust for the use of the charity. The

you are required to include a receipt for your contribution

trust agreement must provide that the trust may not

with this form. The receipt must be from the tax-exempt

terminate and the beneﬁ ciaries’ interest in the trust

organization holding the qualiﬁ ed endowment receiving

may not be assigned or contributed to the qualiﬁ ed

the contribution, the trustee of the trust administering the

endowment sooner than the earlier of the date of death

planned gift, or the Montana bank or trust company holding

of the beneﬁ ciaries or ﬁ ve years from the date of the

the qualiﬁ ed endowment on behalf of the tax-exempt

contribution.

organization. The receipt must contain all of the following

information:

Charitable remainder annuity trust. This is a trust

in which property is transferred and invested by the

●

The amount of the allowable contribution;

trustee who each year pays a ﬁ xed dollar amount to

●

The date the contribution was made to the qualiﬁ ed

one or more private income beneﬁ ciaries for the life

endowment or the planned gift;

of the beneﬁ ciaries, a term of years, or both, with the

remainder interest in the trust then transferring to, or

●

A conﬁ rmation from the 501(c)(3) organization,

for the use of the charity, or retained by the trust for the

trust, or bank that the contribution was placed in a

use of the charity. The trust agreement must provide

permanent irrevocable fund;

that the trust may not terminate and the beneﬁ ciaries’

●

The name of the organization incorporated or

interest in the trust may not be assigned or contributed

established in Montana holding the qualiﬁ ed

to the qualiﬁ ed endowment sooner than the earlier of

endowment fund or the name of the tax-exempt

the date of death of the beneﬁ ciaries or ﬁ ve years from

organization on behalf of which the qualiﬁ ed

the date of the contribution.

endowment is held; and

Pooled income fund trust. This is a trust in which

●

A description of the type of gift.

property contributed by donors is pooled together with

other investors. All the assets transferred to the fund

In the case of a charitable trust where the charity is yet to

are added together and invested. This pooled fund

be named, the donor must include a copy of the disposition

creates a diversiﬁ ed portfolio in which all participants

clause of the charitable trust which gives evidence that a

receive a share of the earnings.

qualiﬁ ed endowment fund has been created.

Charitable lead unitrust. This is a trust in which

If you ﬁ le electronically, you do not need to mail this receipt

property is transferred and invested by the trustee who

to us unless we contact you for a copy.

each year pays a ﬁ xed percentage of the unitrust value,

Line 2. Enter the date the qualiﬁ ed contribution was made.

revalued annually, to the charity for a term of years

or during the lives of speciﬁ ed linear descendants,

Line 3. Mark the box next to the statement that applies:

with the remainder interest then transferring to private

●

A tax-exempt Montana organization, qualiﬁ ed

beneﬁ ciaries named by the donor.

under 26 U.S.C. 501(c)(3), is holding the qualiﬁ ed

Charitable lead annuity trust. This is a trust in which

endowment;

property is transferred and invested by the trustee who

●

A trustee of the trust is administering the planned

each year pays a ﬁ xed dollar amount to the charity

gift; or

for a term of years or lifetime(s), with the remainder

interest then transferring to private beneﬁ ciaries named

●

A Montana bank or trust company is holding the

by the donor.

qualiﬁ ed endowment on behalf of a tax-exempt

organization.

Charitable life estate agreement. This is a gift to

a charity of a personal residence that is subject to a

Provide the name and address of the entity you selected.

reserved life estate.

Line 4. If the gift you are claiming the qualiﬁ ed endowment

Paid-up life insurance policy. This is a life insurance

credit for was a planned gift, mark the appropriate box

policy in which all the premiums have been paid that

indicating the type of gift contributed. If the gift was an

usually entitles the donor to a current deduction equal

outright gift, skip to line 5.

Form Qec - Qualified Endowment Credit - 2013 Page 3

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