Instructions For Form 706-Qdt (Rev. August 2014) Page 3
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7No more than 35% of the FMV of trust
disallowance of the marital deduction for
additional sheet of the same size to the
substantial undervaluation of QDOT
back of the schedule.
assets, determined annually on the last
property, rules regarding foreign real
day of the taxable year of the trust, will
Rounding off to Whole Dollars
property, and certain annual reporting
consist of real property located outside
You may show the money items on the
requirements (concerning ownership of
the United States.
return and accompanying schedules as
foreign real property, cessation of use of
The trust will meet the requirements
whole dollars. To do so, drop any
a personal residence, and look-through
described above for QDOTs with assets
amount less than 50 cents and increase
rules applied to the ownership of foreign
in excess of $2 million.
any amount from 50 cents through 99
real property), see Regulations section
For this purpose, if more than one
cents to the next dollar.
20.2056A-2(d).
QDOT is established for the benefit of
the surviving spouse, the value of all of
How To Complete Form
Specific Instructions
the QDOTs is aggregated in
706-QDT
determining whether the $2 million
Part I—General
threshold is exceeded.
Trustee Filing the Return
Information
Personal Residence
If the trustee is filing the complete
return, prepare it in the following order.
Line 1b. Enter the taxpayer
For the purpose of (1) figuring the $2
identification number (TIN) of the
million threshold, and (2) determining
1. Part I—General Information on
surviving spouse. The TIN is the SSN or
the amount of any bond or letter of
page 1.
ITIN.
credit, the executor of the decedent's
2. Part II—Elections by the Trustee/
estate may elect to exclude up to
Designated Filer on page 1.
If trustee files entire return—Lines
$600,000 in the value of real property
2a, 2b, and 2c. If the trustee is filing
3. All of Schedule B (but only lines
that meets the following requirements.
the entire return, enter the trustee's
1a and 1b of Part I).
It is used by or held for the use of the
information on lines 2a, 2b, and 2c.
4. Schedule A.
surviving spouse as a personal
Line 2b. If the trustee/designated filer
residence.
5. Part III—Tax Computation on
is an individual, enter his or her SSN.
It is owned directly by the QDOT.
page 1.
Otherwise, enter the employer
It passed or was treated as passing to
Enter only the totals from Parts II
identification number (EIN) of the
the QDOT under the rules for the marital
through VI of Schedule B in the
trustee/designated filer.
deduction when the surviving spouse is
corresponding “Total” lines of
not a U.S. citizen (section 2056(d)(2)
Line 2c. Enter the address at which
Schedule A.
(B)).
you wish to receive correspondence
Trustee Completing Schedule B
from the IRS regarding this return. This
The $600,000 may include the value
must be an address for the designated
Only
of any related furnishings.
filer, or if the trustee is filing the return,
If a designated filer will file the return,
Either election may have been made
one of the individual trustees who is a
the trustee must complete all applicable
by the executor on the estate tax return
U.S. citizen or a trustee that is a
parts of Schedule B for his or her
for the decedent's estate. The election
domestic corporation.
respective trust and provide it to the
to exclude the personal residence
Line 4a. Enter the name of the
designated filer at least 60 days before
amount from the amount of the bond or
decedent on whose estate tax return the
the due date for filing Form 706-QDT.
letter of credit may also be made
QDOT election was made.
prospectively by the U.S. trustee by
Designated Filer Filing the
attaching a statement to Form 706-QDT
Line 4b. Enter the SSN of the decedent
Return
claiming the exclusion. This election,
or, if applicable, the number previously
The designated filer must receive a
whether made by the executor or by a
assigned to the decedent's estate by the
completed Schedule B from the trustee
trustee, may be canceled by attaching
service center.
of every QDOT that has had a
such a statement to Form 706-QDT.
reportable event or a hardship
Part II—Elections by the
Filing a Bond or Letter of Credit
distribution during the tax year. The
Trustee/Designated Filer
designated filer would then summarize
If the bond or letter of credit
If this return is being filed because of the
these on Schedule A.
arrangement is selected, the executor
death of the surviving spouse, and any
must have filed the bond or letter of
Complete the return in the following
property remaining in the QDOT at that
credit with the Form 706 or 706-NA on
order.
time is includible in the estate of the
which the QDOT election is made.
1. Part I—General Information on
surviving spouse (or would be includible
The U.S. trustee must provide a
page 1.
if the surviving spouse had been a U.S.
written statement with the bond or letter
2. Part II—Elections by the Trustee/
citizen or resident), then the trustee/
of credit listing the assets that will fund
Designated Filer on page 1.
designated filer may elect to apply
the QDOT, the values of the assets, and
certain estate tax benefits on this return,
3. Schedule A.
whether any exclusion for a personal
provided the estate of the surviving
4. Part III—Tax Computation on
residence is being claimed.
spouse would be eligible for these
page 1.
benefits.
Additional Information
Attach each Schedule B to the return
Line 1. Alternate valuation. Unless
For more information, including
when you file it.
you elect at the time you file this return
additional requirements for a bond and
to adopt alternate valuation under
letter of credit, details on the exclusion
If there is not enough space on a
section 2032, then you must value all
of a personal residence, rules on the
schedule to list all the items, attach an
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