Instructions For Form 706-Qdt (Rev. August 2014) printable pdf download

Instructions for

Department of the Treasury

Internal Revenue Service

Form 706-QDT

(Rev. August 2014)

U.S. Estate Tax Return for Qualified Domestic Trusts

Who Must File

Section references are to the Internal Revenue

The trust instrument requires that at

Code unless otherwise noted.

least one trustee be either a U.S. citizen

Either the trustee or the designated filer,

or a domestic corporation.

Future Developments

as described below, must file Form

The trust instrument requires that no

706-QDT for any year in which the

For the latest information about

distribution of corpus from the trust may

QDOT has a taxable event (defined

developments related to Form 706-QDT

be made unless the trustee who is a

below) or makes a distribution on

and its instructions, such as legislation

U.S. citizen or a domestic corporation

account of hardship.

enacted after they were published, go to

has the right to withhold from the

Trustee

distribution the QDOT tax imposed on

the distribution.

If the surviving spouse is the beneficiary

What's New

The QDOT election under section

of only one QDOT, the trustee of that

2056A(d) has been made for the trust

QDOT is liable for filing Form 706-QDT

Expanded definition of spouse. For

by the executor of the estate on the

and paying the tax.

federal tax purposes, individuals of the

decedent's estate tax return.

same sex are considered married if they

The trustee must also file Form

The requirements of all applicable

were lawfully married in a state (or

706-QDT if the surviving spouse is the

regulations have been met.

foreign country) whose laws authorize

beneficiary of more than one QDOT,

the marriage of two individuals of the

Taxable event. A taxable event is any

unless the decedent's executor

same sex, even if the state (or foreign

of the following.

designated one U.S. trustee as the

country) in which they now live does not

designated filer.

1. Any distribution from a QDOT

recognize same-sex marriage. The term

(and certain annuity payments) before

“spouse” includes an individual married

If there is more than one trustee for

the death of the surviving spouse,

to a person of the same sex if the couple

any single trust, each trustee is liable for

except:

is lawfully married under state (or

filing the return and paying the tax.

a. Distributions of income to the

foreign) law. See Rev. Rul. 2013–17,

surviving spouse, and

If there is a designated filer, the

2013–38 IRB 201, for more details.

b. Any distributions made to the

trustee must still complete a separate

surviving spouse on account of

Schedule B of Form 706-QDT for each

General Instructions

hardship.

trust for which he or she is the trustee

and provide the completed Schedule B

2. The death of the surviving

Purpose of Form

to the designated filer at least 60 days

spouse.

The trustee or designated filer

before the due date for filing Form

3. The failure of the trust to qualify

(described below) of a qualified

706-QDT.

as a QDOT.

domestic trust (QDOT) uses Form

Designated Filer

706-QDT to figure and report the estate

Hardship distribution. A distribution

If the surviving spouse is the beneficiary

tax due on:

of principal is treated as made on

of more than one QDOT from a single

Certain distributions from the QDOT,

account of hardship if it is made to the

decedent, and the decedent's executor

The value of the property remaining in

spouse from the QDOT in response to

has made such a designation, then the

the QDOT on the date of the surviving

an immediate and substantial financial

designated filer selected by the

spouse's death, and

need relating to the spouse's health,

executor is liable for filing the return and

The corpus portion of certain annuity

maintenance, education, or support, or

paying the tax for all QDOTs. This

payments.

the health, maintenance, education, or

designation can be made on either the

support of any person that the surviving

Under certain circumstances, the

decedent's estate tax return or the first

spouse is legally obligated to support.

trustee/designated filer uses Form

Form 706-QDT that is timely filed.

Decedent. In these instructions,

706-QDT to notify the IRS that the trust

In this case, the trustee of each

is exempt from future filing because the

decedent means the grantor of the

QDOT is responsible for completing

QDOT on whose estate tax return the

surviving spouse has become a U.S.

Schedule B of Form 706-QDT for his

executor makes the QDOT election.

citizen and meets the requirements

or her trust and giving it to the

listed under Part II—Elections by the

Surviving spouse. In these

designated filer.

Trustee/Designated Filer, Line 4.

instructions, surviving spouse means

Spousal election, later.

the individual who is both the surviving

Definitions

spouse of the decedent and also the

The QDOT rules apply only in those

beneficiary of the decedent's QDOT.

Qualified domestic trust. A qualified

situations where a decedent's surviving

domestic trust (QDOT) is any trust that

spouse is not a U.S. citizen.

When To File

qualifies for an estate tax marital

deduction under section 2056 and also

Form 706-QDT is an annual return.

meets all of the following requirements.

Aug 08, 2014

Cat. No. 12384F

Instructions For Form 706-Qdt (Rev. August 2014)

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