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Department of the Treasury
Internal Revenue Service
Instructions for

Form 706-QDT

(Rev. September 2021)
U.S. Estate Tax Return for Qualified Domestic Trusts

Section references are to the Internal Revenue unless the decedent's executor Taxable event. A taxable event is any
Code unless otherwise noted. designated one U.S. trustee as the of the following.
designated filer.
Future Developments 1. Any distribution from a QDOT (and
For the latest information about If there is more than one trustee for certain annuity payments) before
developments related to Form 706-QDT any single trust, each trustee is liable for the death of the surviving spouse,
and its instructions, such as legislation filing the return and paying the tax. except:
enacted after they were published, go to a. Distributions of income to the
IRS.gov/Form706QDT. If there is a designated filer, the surviving spouse, and
trustee must still complete a separate b. Any distributions made to the

Schedule B of Form 706-QDT for each surviving spouse on account of
General Instructions trust for which he or she is the trustee hardship.
and provide the completed Schedule B
Purpose of Form to the designated filer at least 60 days 2. The death of the surviving spouse.
The trustee or designated filer before the due date for filing Form 3. The failure of the trust to qualify as
(described below) of a qualified 706-QDT. a QDOT.
domestic trust (QDOT) uses Form
706-QDT to figure and report the estate Designated Filer
Hardship distribution. A distribution
tax due on: If the surviving spouse is the beneficiary of principal is treated as made on
• Certain distributions from the of more than one QDOT from a single account of hardship if it is made to the
QDOT, decedent, and the decedent's executor spouse from the QDOT in response to
• The value of the property remaining has made such a designation, then the an immediate and substantial financial
in the QDOT on the date of the designated filer selected by the need relating to the spouse's health,
surviving spouse's death, and executor is liable for filing the return and maintenance, education, or support, or
• The corpus portion of certain paying the tax for all QDOTs. This the health, maintenance, education, or
annuity payments. designation can be made on either the support of any person that the surviving
decedent's estate tax return or the first spouse is legally obligated to support.
Under certain circumstances, the Form 706-QDT that is timely filed.
trustee/designated filer uses Form Decedent. In these instructions,
706-QDT to notify the IRS that the trust In this case, the trustee of each decedent means the grantor of the
is exempt from future filing because 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 or executor makes the QDOT election.
citizen and meets the requirements her trust and giving it to the designated
listed under Part II—Elections by the filer. Surviving spouse. In these
instructions, surviving spouse means
Trustee/Designated Filer, Line 4. the individual who is both the surviving
Spousal election, later. Definitions spouse of the decedent and also the
The QDOT rules apply only in those Qualified domestic trust. A qualified beneficiary of the decedent's QDOT.
situations where a decedent's surviving domestic trust (QDOT) is any trust that
spouse is not a U.S. citizen. qualifies for an estate tax marital Note. The term “spouse” includes an
deduction under section 2056 and also individual married to a person of the
Who Must File meets all of the following requirements. same sex if the couple is lawfully
Either the trustee or the designated filer, • The trust instrument requires that at married under state (or foreign) law.
as described below, must file Form least one trustee be either a U.S. See Rev. Rul. 2013-17, 2013-38 I.R.B.
706-QDT for any year in which the citizen or a domestic corporation. 201, available at Rev. Rul. 2013-17, for
QDOT has a taxable event (defined • The trust instrument requires that no more details.
below) or makes a distribution on distribution of corpus from the trust
account of hardship. may be made unless the trustee When To File
who is a U.S. citizen or a domestic Form 706-QDT is an annual return.
Trustee corporation has the right to withhold
Generally, the return to report
If the surviving spouse is the beneficiary from the distribution the QDOT tax
distributions is due on or after January 1
of only one QDOT, the trustee of that imposed on the distribution.
but not later than April 15 of the year
QDOT is liable for filing Form 706-QDT • The QDOT election under section
following any calendar year in which a
and paying the tax. 2056A(d) has been made for the
taxable event occurred or a distribution
trust by the executor of the estate
was made on account of hardship.
The trustee must also file Form on the decedent's estate tax return.
706-QDT if the surviving spouse is the • The requirements of all applicable However, if you are filing the return
beneficiary of more than one QDOT, regulations have been met. because of the death of the surviving

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spouse, you must file it within 9 months   Paying the Tax                                filed for the trust. You do not need to 
following the date of death. You must      Generally, the QDOT estate tax is due         attach a copy of the trust to any 
also report on that return all reportable  by April 15 of the year following the         subsequent filings of Form 706-QDT.
distributions made during the calendar     calendar year in which taxable                   If you are filing the return due to the 
year in which the surviving spouse died.   distributions were made. However, if the      death of the surviving spouse, attach a 
This rule may result in a return being     surviving spouse died during the year or      copy of the death certificate.
due before April 15. For example, if the   if the trust ceased to qualify as a QDOT 
surviving spouse died on June 14,          during the year, the tax on those events      Penalties
2020, Form 706-QDT would be due            and on any taxable distributions              Section 6651 provides penalties for both 
March 14, 2021, and must include all       occurring during that calendar year is        late filing and for late payment unless 
reportable distributions made during       due within 9 months following the date        there is reasonable cause for the delay. 
2020.                                      of death or the failure to qualify.           The law also provides penalties for 
If the trust ceases to qualify as a        If the QDOT qualifies, you may elect          willful attempts to evade payment of tax.
QDOT, you must file Form 706-QDT           under section 6166 to pay the tax in 
within 9 months of the date on which the   installments. You may make either a              Section 6662 provides penalties for 
trust ceased to qualify. You must          protective or final election by checking      underpayment of estate taxes which 
include on that return any reportable      “Yes” on line 3 of Part II—Elections by       exceed $5,000 that are attributable to 
distributions made during the calendar     the Trustee/Designated Filer, and             valuation understatements. See 
year of the failure to qualify.            attaching the required statements. See        sections 6662(g) and (h) for more 
Use Form 4768, Application for             the instructions under Line 3.                details.
Extension of Time To File a Return         Installment payments, later, for              Return preparer. Estate tax return 
and/or Pay U.S. Estate (and                additional information.                       preparers who prepare any return or 
Generation-Skipping Transfer) Taxes, to    Make the check payable to “United             claim for refund that reflects an 
apply for an automatic 6-month             States Treasury.” Write the surviving         understatement of tax liability due to an 
extension of time to file Form 706-QDT.    spouse's social security number (SSN)         unreasonable position are subject to a 
Check the “Form 706-QDT” box in Part       (or individual taxpayer identification        penalty equal to the greater of $1,000 or 
II of Form 4768.                           number (ITIN), if applicable) and “Form       50% of the income earned (or to be 
                                           706-QDT” on the check to assist us in         earned) for the preparation of each such 
Note. An extension of time to file does    posting it to the proper account.             return. Estate tax return preparers who 
not extend the time to pay the tax.                                                      prepare any return or claim for refund 
                                                                                         that reflects an understatement of tax 
Private delivery services (PDSs).          Signature(s)                                  liability due to willful or reckless conduct 
You can use certain PDSs designated        If the trustee is filing the return and there are subject to a penalty of $5,000 or 
by the IRS to meet the "timely mailing as  is more than one trustee listed, all listed   75% of the income derived (or income 
timely filing/paying" rule for tax returns trustees must verify the return. All          to be derived), whichever is greater, for 
and payments. Go to IRS.gov/PDS for        trustees are responsible for the return       the preparation of each such return. See 
the current list of designated services.   as filed and are liable for penalties         section 6694(a) and 6694(b), the related 
The PDS can tell you how to get            provided for erroneous or false returns.      regulations, and Announcement 
written proof of the mailing date.         The trustee/designated filer who files        2009-15, 2009-11 I.R.B. 687, available 
For the IRS mailing address to use if      the return must, in every case, sign the      at Announcement 2009-15, for more 
you’re using a PDS, go to IRS.gov/         declaration on page 1 under penalties of      information.
PDSStreetAddresses.                        perjury. The trustee/designated filer 
                                           may use Form 2848, Power of Attorney          Security for Payment of 
        PDSs can’t deliver items to P.O.   and Declaration of Representative, to         the Tax
!       boxes. You must use the U.S        authorize another person to act for him 
CAUTION Postal Service to mail any item 
                                           or her before the IRS.                        Assets in Excess of $2 Million
to an IRS P.O. box address.
                                                                                         If the estate tax value of the assets 
                                           Paid Preparer Use Only                        passing to the QDOT exceeds $2 
Where To File                              Generally, anyone who is paid to              million (determined without regard to 
File Form 706-QDT at the following         prepare the return must sign the return       any indebtedness), the trust instrument 
address.                                   in the space provided and fill in the Paid    must require that the trust meet at least 
                                           Preparer Use Only area.                       one of the following conditions at all 
Department of the Treasury                                                               times during the term of the QDOT.
Internal Revenue Service Center            A paid preparer cannot use a social 
Kansas City, MO 64999                      security number in the Paid Preparer          •  At least one U.S. trustee must be a 
                                           Use Only box. The paid preparer must             bank as defined in section 581.
                                           use their valid preparer tax identification   •  The U.S. trustee must furnish a 
If using a PDS, use this address.                                                           bond in favor of the IRS in an 
                                           number (PTIN). In addition to signing 
Internal Revenue Submission                and completing the required                      amount equal to 65% of the fair 
Processing Center                          information, the paid preparer must give         market value (FMV) of the trust 
333 W. Pershing                            a copy of the completed return to the            assets.
Kansas City, MO 64108                      trustee/designated filer.                     •  The U.S. trustee must furnish an 
                                                                                            irrevocable letter of credit issued by 
                                                                                            a bank in an amount equal to 65% 
                                           Supplemental Documents                           of the FMV of the trust assets.
                                           You must attach a copy of the trust 
                                           instrument to the first Form 706-QDT 

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The trust instrument may also meet whether made by the executor or by a Designated Filer Filing the
this requirement by specific reference to trustee, may be canceled by attaching Return
the applicable paragraph of Regulations such a statement to Form 706-QDT.
section 20.2056A-2(d). The designated filer must receive a
Filing a Bond or Letter of Credit completed Schedule B from the trustee
The QDOT may alternate between If the bond or letter of credit of every QDOT that has had a
any of these arrangements provided arrangement is selected, the executor reportable event or a hardship
that one of the arrangements is must have filed the bond or letter of distribution during the tax year. The
operative at any given time. The QDOT credit with the Form 706 or 706-NA on designated filer would then summarize
may give the trustee the discretion to which the QDOT election is made. these on Schedule A.
use any one of the security
arrangements, or may limit the trustee to The U.S. trustee must provide a Complete the return in the following
using only one or two of the written statement with the bond or letter order.
arrangements. of credit listing the assets that will fund 1. Part I—General Information on
the QDOT, the values of the assets, and page 1.
Assets of $2 Million or Less whether any exclusion for a personal
If the estate tax value of the assets residence is being claimed. 2. Part II—Elections by the Trustee/
passing to the QDOT is $2 million or Designated Filer on page 1.
less (determined without regard to any Additional Information
3. Schedule A.
indebtedness), the trust instrument must For more information, including
require that the trust meet at least one of additional requirements for a bond and 4. Part III—Tax Computation on
the following conditions at all times letter of credit, details on the exclusion page 1.
during the term of the QDOT. of a personal residence, rules on the Attach each Schedule B to the return
• No more than 35% of the FMV of disallowance of the marital deduction for when you file it.
trust assets, determined annually on substantial undervaluation of QDOT
the last day of the tax year of the property, rules regarding foreign real If there is not enough space on a
trust, will consist of real property property, and certain annual reporting schedule to list all the items, attach an
located outside the United States. requirements (concerning ownership of additional sheet of the same size to the
• The trust will meet the requirements foreign real property, cessation of use of back of the schedule.
described above for QDOTs with a personal residence, and look-through Rounding Off to Whole Dollars
assets in excess of $2 million. rules applied to the ownership of foreign
real property), see Regulations section You may round off cents to whole
For this purpose, if more than one 20.2056A-2(d). dollars on the return and schedules. If
QDOT is established for the benefit of you do round to whole dollars, you must
the surviving spouse, the value of all of round all amounts. To round, drop
How To Complete Form
the QDOTs is aggregated in amounts under 50 cents and increase
determining whether the $2 million 706-QDT amounts from 50 cents to 99 cents to
threshold is exceeded. Trustee Filing the Return the next dollar. For example, $1.39
becomes $1 and $2.50 becomes $3.
Personal Residence If the trustee is filing the complete
For the purpose of (1) figuring the $2 return, prepare it in the following order.
Specific Instructions
million threshold, and (2) determining 1. Part I—General Information on
the amount of any bond or letter of page 1.
credit, the executor of the decedent's Part I—General
estate may elect to exclude up to 2. Part II—Elections by the Trustee/ Information
$600,000 in the value of real property Designated Filer on page 1.
If trustee files entire return—Lines
that meets the following requirements. 3. All of Schedule B (but only lines 1a 2a, 2b, and 2c. If the trustee is filing
• It is used by or held for the use of and 1b of Part I). the entire return, enter the trustee's
the surviving spouse as a personal
residence. 4. Schedule A. information on lines 2a, 2b, and 2c.
• It is owned directly by the QDOT. 5. Part III—Tax Computation on Line 2b. If the trustee/designated filer
• It passed or was treated as passing page 1. is an individual, enter his or her SSN.
to the QDOT under the rules for the Otherwise, enter the employer
marital deduction when the Enter only the totals from Parts II identification number (EIN) of the
surviving spouse is not a U.S. through VI of Schedule B in the trustee/designated filer.
citizen (section 2056(d)(2)(B)). corresponding “Total” lines of
Schedule A. Line 2c. Enter the address at which
The $600,000 may include the value you wish to receive correspondence
of any related furnishings. Trustee Completing Schedule B from the IRS regarding this return. This
Either election may have been made Only must be an address for the designated
filer, or if the trustee is filing the return,
by the executor on the estate tax return If a designated filer will file the return,
one of the individual trustees who is a
for the decedent's estate. The election the trustee must complete all applicable
U.S. citizen or a trustee that is a
to exclude the personal residence parts of Schedule B for his or her
domestic corporation.
amount from the amount of the bond or respective trust and provide it to the
letter of credit may also be made designated filer at least 60 days before Line 3b. Enter the taxpayer
prospectively by the U.S. trustee by the due date for filing Form 706-QDT. identification number (TIN) of the
attaching a statement to Form 706-QDT surviving spouse. The TIN is the SSN or
claiming the exclusion. This election, ITIN.

Instructions for Form 706-QDT (Rev. 9-2021) -3-

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Line 4a. Enter the name of the 2. Any property not distributed, sold, For definitions and additional
decedent on whose estate tax return the exchanged, or otherwise disposed information, see section 2032A and the
QDOT election was made. of within the 6-month period is related regulations. Also see Part
valued on the date 6 months after 3—Elections by the Executor and the
Line 4b. Enter the SSN of the decedent the date of the surviving spouse's Instructions for Schedule A-1, in the
or, if applicable, the number previously death. Instructions for Form 706.
assigned to the decedent's estate by the
service center. 3. Any property that is “affected by Line 3. Installment payments. If the
mere lapse of time” is valued as of gross estate includes an interest in a
Part II—Elections by the the date of the surviving spouse's closely held business, you may be able
death. However, you may change to elect to pay part of the estate tax in
Trustee/Designated Filer the date of death value to account installments under section 6166.
If this return is being filed because of the for any change in value that is not The maximum amount that can be
death of the surviving spouse, and any due to “mere lapse of time” on the paid in installments is that part of the
property remaining in the QDOT at that date of its distribution, sale, estate tax that is attributable to the
time is includible in the estate of the exchange, or other disposition. closely held business. See Determine
surviving spouse (or would be includible how much of the estate tax may be paid
if the surviving spouse had been a U.S. For additional details, see Part
citizen or resident), then the trustee/ 3—Elections by the Executor in the in installments under section 6166
designated filer may elect to apply separate Instructions for Form 706. under Line 3. Section 6166 Installment
Payments in the separate Instructions
certain estate tax benefits on this return, Line 2. Special use valuation of sec- for Form 706. In general, that amount is
provided the estate of the surviving tion 2032A. Under section 2032A, you the amount of tax that bears the same
spouse would be eligible for these may elect to value certain farm and ratio to the total estate tax that the value
benefits. closely held business real property at its of the closely held business included in
Line 1. Alternate valuation. Unless farm or business use value rather than the gross estate bears to the adjusted
you elect at the time you file this return its FMV. You may elect both special use gross estate.
to adopt alternate valuation under valuation and alternate valuation. To
If you check this line to make a
section 2032, then you must value all elect this valuation, you must check
protective election, you should attach a
property of all trusts listed on “Yes” on line 2 and complete and attach
notice of protective election as
Schedule A, Part III, on the date of the Schedule A-1 of Form 706 and its
described in Regulations section
surviving spouse's death. required additional statements.
20.6166-1(d).
You must file Schedule A-1 of If you check this line to make a final
Note. You may not elect alternate ! Form 706 and its required election, you should attach the notice of
valuation for any property reported on CAUTION attachments with Form
election described in Regulations
Schedule A, Parts I and II. 706-QDT for this election to be valid. section 20.6166-1(b).
You may not elect alternate valuation
unless the election will decrease both The total value of the property valued In computing the adjusted gross
the value of the Schedule A, Part III under section 2032A may not be estate under section 6166(b)(6) for
property, and the net tax due on the decreased from FMV by more than purposes of determining whether an
return. $1,190,000 for decedents dying in election may be made under section
A designated filer filing for multiple 2021. For later years, the IRS will 6166, the net amount of any real estate
trusts must make this election for all of publish the amount in an annual in a closely held business must be used.
the Schedule A, Part III property in all of revenue procedure. For definitions and additional
the trusts, taken as a whole. The Real property may qualify for the information, see section 6166 and the
election cannot be made unless the section 2032A election if: related regulations. Also see the Form
706 instructions for Part 3—Elections by
requirements are met for all of the 1. The real property is located in the the Executor and Line 3. Section 6166
property. United States, Installment Payments for a worksheet
You elect alternate valuation by on how to calculate the amount of tax
checking “Yes” on line 1 and filing Form 2. The real property is used for
706-QDT. Once made, the election is farming or in a trade or business, which may be paid in installments under
section 6166.
irrevocable. 3. The real property was acquired
If you elect alternate valuation, you from or passed from the surviving Bond or lien. The IRS may require that
must value all of the property to which spouse to a qualified heir of the an estate furnish a surety bond when
the election applies as of the applicable surviving spouse, granting the installment payment
election. In the alternative, the executor
date as follows. 4. The real property was owned and may consent to elect the special lien
1. Any property distributed, sold, used in a qualified manner by the provisions of section 6324A in lieu of the
exchanged, or otherwise disposed surviving spouse or a member of bond. The IRS will contact you
of by any method within 6 months the surviving spouse's family for 5 regarding the specifics of furnishing the
after the surviving spouse's death is of the 8 years before the surviving bond or electing the special lien. The
valued on the date of distribution, spouse's death, and IRS will make this determination on a
sale, exchange, or other 5. The qualified property is the case-by-case basis, and you may be
disposition, whichever occurs first. percentage of the surviving asked to provide additional information.
Value the property on the date title spouse's gross estate specified in If you elect the lien provisions,
passed as a result of the sale, section 2032A. section 6324A requires that the lien be
exchange, or other disposition. placed on property having a value equal

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to the total deferred tax plus 4 years of Line 1b. All trusts filing Form 706-QDT report the location and, if the parcel is
interest. The property must be expected must have an EIN. If you don’t have an improved, describe the improvements.
to survive the deferral period, and does EIN, you may apply for one online by For city or town property, report the
not necessarily have to be property of visiting the IRS website at IRS.gov/EIN. street number, ward, subdivision, block
the estate. In addition, all of the persons You may also apply for an EIN by faxing and lot, etc. For rural property, report
having an interest in the designated or mailing Form SS-4 to the IRS. If the the township, range, landmarks, etc.
property must consent to the creation of EIN has not been received by the filing Stocks. For stocks, give:
this lien on the property pledged. time for Form 706-QDT, write “Applied • Number of shares;
Line 4. Spousal election. If the for” on line 1b. • Whether common or preferred;
surviving spouse has become a U.S. Line 2a. You must enter on this line • Issue;
citizen, the QDOT tax will not apply to either the name of an individual trustee • Par value, where needed for
any distributions made after the who is a U.S. citizen or a trustee that is valuation;
surviving spouse became a citizen as a domestic corporation. If there is more • Price per share;
long as either: than one trustee, enter the one to be • Exact name of corporation;
• The surviving spouse had been a contacted by the IRS. List the names of • Principal exchange upon which
U.S. resident at all times after the all additional trustees on a sheet of sold, if listed on an exchange; and
death of the decedent and before paper attached to this return. Include • CUSIP number (defined below).
becoming a citizen, or the SSN or EIN of all U.S. citizens or If the stock is unlisted, show the
• No QDOT tax had been imposed on domestic corporations. company's principal business office.
any distributions prior to the
surviving spouse becoming a Line 2b. Enter the SSN or EIN, as Bonds. For bonds, give:
citizen. applicable, of the trustee listed on • Quantity and denomination;
line 2a.
You should file a final Form 706-QDT • Name of obligor;
to notify the IRS that the QDOT tax no Part II—Taxable Distributions • Date of maturity;
• Interest rate;
longer applies for this reason. From Prior Years Interest due date;
•
If the surviving spouse does not meet Enter here the total of all taxable • Principal exchange, if listed on an
either of the conditions above, the distributions that were or should have exchange; and
QDOT tax will still not apply to been reported on previously filed Forms • CUSIP number.
distributions after he or she becomes a 706-QDT.
citizen if the surviving spouse elects If the bond is unlisted, show the
both: Part III—Current Taxable company's principal business office.
• To treat any distributions that were Distributions CUSIP number. The CUSIP
subject to QDOT tax as taxable gifts You must report on Part III the total (Committee on Uniform Security
for purposes of determining the amount of corpus distributed during the Identification Procedure) number is a
estate or gift tax under sections calendar year or other period covered nine-digit number that is assigned to all
2001 and 2501, respectively, for the by this return and before the date of stocks and bonds traded on major
year the surviving spouse became a death of the surviving spouse. Include exchanges and many unlisted
citizen and all subsequent years; as a distribution any QDOT estate tax securities. Usually, the CUSIP number
and paid during the calendar year out of the is printed on the face of the stock
• To treat any of the decedent's QDOT. Include all distributions even if certificate. If the CUSIP number is not
unified credit (applicable credit the hardship exemption is being printed on the certificate, it may be
amount) that was used to reduce claimed. obtained through the company's
the QDOT tax on taxable transfer agent.
distributions as use of the surviving Also, include as distributions in this
spouse's own unified credit for part any reportable payments to the Other personal property. Any
purposes of determining the surviving spouse from nonassignable personal property distributed must be
spouse's available unified credit annuities and other arrangements when described in enough detail that its value
under section 2505 for the year he the executor has filed with the estate tax can be ascertained by the IRS.
or she became a citizen and for all return for the decedent's estate an Column C. Value. The value of a
subsequent years. agreement to pay section 2056A estate distribution is its FMV on the date of
To make these elections, check tax on such distributions. For details, distribution. FMV is the price at which
“Yes” on line 4 and attach notification of see Regulations section 20.2056A-4(c). the property would change hands
the election to this return. Column A. Date of distribution. The between a willing buyer and a willing
date of distribution is the date on which seller, when neither is forced to buy or
Schedule B the title to the distributed property to sell, and both have reasonable
passed from the trustee to the surviving knowledge of all the relevant facts. FMV
Part I—General Information spouse. may not be determined by a forced sale
If the trustee is filing the entire return, price, nor by the sale price of the item in
the trustee needs to complete only lines Column B. Description. Include in the a market other than that in which the
1a and 1b of this part of Schedule B (but description the name of the individual(s) item is most commonly sold to the
all of Parts II through VI). When to whom the distribution was made. public. The location of the item must be
completing Part I on page 1, enter the Real estate. Describe the real taken into account whenever relevant.
remaining trustee's information on lines estate in enough detail so that the IRS Stocks and bonds. The FMV of a
2a, 2b, and 2c. can easily locate it for inspection and stock or bond (whether listed or
valuation. For each parcel of real estate,

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unlisted) is the mean between the of the QDOT on the date of death. includible if the surviving spouse had
highest and lowest selling prices quoted Ordinary dividends declared to been a U.S. citizen or resident).
on the valuation date. If only the closing stockholders of record after the date of
selling prices are available, then the the surviving spouse's death are not Do not make an entry in Parts V and
FMV is the mean between the quoted property of the QDOT on the date of VI unless there is an entry in Part IV of
closing selling price on the valuation death. However, if you have elected Schedule B. Also, the sum of the total of
date and on the trading day before the alternate valuation on line 1 of Part II, the amounts entered in Parts V and VI
valuation date. If there were no sales on page 1, and dividends are declared to cannot exceed the total of the amount
the valuation date, figure the FMV as stockholders of record after the date of entered in Part IV of Schedule B.
follows. the surviving spouse's death so that the For details on the marital and
shares of stock at the later valuation
1. Find the mean between the highest charitable deductions, see the
date do not reasonably represent the
and lowest selling prices on the instructions for Schedule M and
same property at the date of the
nearest trading day before and the Schedule O, in the Instructions for Form
surviving spouse's death, include those
nearest trading day after the 706, as applicable.
dividends (except dividends paid from
valuation date. Both trading days
earnings of the corporation after the
must be reasonably close to the Schedule A
date of the surviving spouse's death) in
valuation date. When a designated filer is filing Form
the alternate valuation. 706-QDT for more than one trust, use
2. Prorate the difference between the Schedule A to summarize the
mean prices to the valuation date. If there is not enough space to list all
of the property, attach additional sheets Schedule B amounts provided by the
3. Add or subtract (whichever of the same size, using the same format trustees. Under “EIN of QDOT” (that is,
applies). as Part IV. column A of Parts II, III, and IV), enter
the EIN of the appropriate trust. If the
See the Instructions for Schedule B, Column A. Item no. Assign a separate trustee is filing the return, simply
in the Instructions for Form 706 for item number to each separate type of transfer the totals from Schedule B to
additional information on valuing stocks property. For example, you can include the corresponding “Total” lines on
and bonds. under a single item number all stock of Schedule A.
the same issuer and type, but must list
Column D. Amount of hardship ex-
separate types (for example, preferred
emption claimed. Distributions to the Part III—Tax Computation
and common) under separate item
surviving spouse on account of hardship (Page 1 of Form 706-QDT)
numbers.
are exempt from the QDOT tax. Enter in
column D the amount of any distribution Column B. Description. See the Line 7. Enter the amount of the taxable
for which the hardship exemption is instructions under Part III—Current estate from one of the following as filed
being claimed. Do not enter any amount Taxable Distributions, Column B. for the decedent's estate or as finally
here that has not been included in the Description, earlier. determined by the IRS.
• Part 2—Tax Computation, line 3 of
amount listed in column C. Also, if the Column C. Alternate valuation date. Form 706 (for estates of decedents
surviving spouse is the beneficiary of If this return involves only one trust, dying before January 1, 2005).
more than one QDOT, you may not enter the alternate valuation date only if • Part 2—Tax Computation, line 3c of
claim the hardship exemption unless the you answered “Yes” to question 1 of Form 706 (for estates of decedents
decedent's executor selected a Part II—Elections by the Trustee/ dying on or after January 1, 2005).
designated filer. See Designated Filer, Designated Filer. • Part II—Tax Computation, line 1 of
earlier.
If the designated filer is filing this Form 706-NA.
Part IV—Taxable Property in return for multiple trusts, the individual
Trust at Death of Surviving trustees will complete Part IV, but only Lines 10 and 11. Using the same
Spouse the designated filer can elect alternate revision of Form 706 or Form 706-NA on
valuation. To allow the designated filer which the executor filed the decedent's
You must report in Part IV all property to make this decision, the trustee must estate tax return, recompute the
remaining in the QDOT on the date of provide on an attachment to Schedule B decedent's net estate tax by substituting
death of the surviving spouse (or the both the regular and the alternate value the amounts on line 9 and line 8 of this
date the trust failed to qualify as a (and the alternate valuation date) for all Form 706-QDT for the decedent's
QDOT, if applicable). This includes both assets, unless the designated filer has taxable estate from one of the following.
corpus and undistributed income. notified the trustee that this is not • Part 2—Tax Computation, line 3 of
Interest accrued to the date of the required. Form 706 (for estates of decedents
dying before January 1, 2005).
surviving spouse's death on bonds, Column D. Value. See the instructions • Part 2—Tax Computation, line 3c of
notes, and other interest-bearing under Part III—Current Taxable Form 706 (for estates of decedents
obligations is property of the QDOT on Distributions, Column C. Value, earlier. dying on or after January 1, 2005).
the date of death. Rent accrued to the
date of the surviving spouse's death on Parts V and VI—Marital and • Part II—Tax Computation, line 1 of
Form 706-NA.
leased real and personal property is Charitable Deductions
property of the QDOT on the date of Prior year versions of Forms 706 and
Marital and charitable deductions are
death. 706-NA can be obtained by calling
allowable for any property that both
800-TAX-FORM (800-829-3676) or by
Outstanding dividends that were remained in the QDOT on the date of
accessing the IRS website at
declared to stockholders of record on or the surviving spouse's death and was
IRS.gov.
before the date of the surviving includible in the gross estate of the
spouse's death are considered property surviving spouse (or would have been

-6- Instructions for Form 706-QDT (Rev. 9-2021)

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Note that as a result of the 1. This return is being filed because of
recomputation, some items other than the death of the surviving spouse. Paperwork Reduction Act Notice.
the taxable estate might be different We ask for the information on this form
2. Any property remaining in the
from what was on the decedent's actual to carry out the Internal Revenue laws of
QDOT at that time is includible in
estate tax return. If the decedent's the United States. We need it to ensure
the estate of the surviving spouse
estate did not fully use its unified credit, that you are complying with these laws
(or would be includible if the
additional unified credit may be and to allow us to figure and collect the
surviving spouse had been a U.S.
allowable in the recomputation. right amount of tax.
citizen or resident).
If the decedent's estate claimed a You are not required to provide the
credit for tax on prior transfers and the 3. The credit is allowable (or would be information requested on a form that is
credit was limited by section 2013(c), allowable if the surviving spouse subject to the Paperwork Reduction Act
the recomputed credit may be different had been a U.S. citizen or resident) unless the form displays a valid OMB
than on the return as filed. to the estate of the surviving control number. Books or records
spouse with respect to the property
Also, if the decedent's estate claimed relating to a form or its instructions must
referred to in (2), above.
a credit for state death taxes (for be retained as long as their contents
may become material in the
decedents dying before January 1, 4. The taxes were actually paid to a
administration of any Internal Revenue
2005) or a credit for foreign death taxes foreign jurisdiction.
and the amount of the credit that could law. Generally, tax returns and return
be claimed was limited by section For details on claiming this credit, information are confidential as required
2011(b) (prior to its repeal on January 1, see the Instructions for Form 706. If you by section 6103.
2005) or section 2014(b), respectively, claim the foreign death tax credit, you
The time needed to complete and file
the recomputed credit may be different. must complete and attach Schedule P
this form will vary depending on
of Form 706.
If the final determination of the tax individual circumstances. The estimated
due on the estate of the decedent has average time is:
Table of Maximum Tax Rates
not been made at the time this return is
filed, you must figure the tax on these Recordkeeping. . . . . 1 hr., 12 min.
lines using the highest rate of tax (see The Learning about the
Table of Maximum Tax Rates below) in maximum law or the form. . . . . 42 min.
effect at the time of the decedent's tax rate
death. If the decedent died. . . . is. . . . . . Preparing the
form. . . . . . . . . . . . . 1 hr., 30 min.
Also, if there is more than one QDOT After December 31, 2004, 47%
with respect to any decedent, you must but before January 1, 2006 Copying,
figure the tax on lines 10 and 11 using assembling, and
the highest rate of tax (see Table of After December 31, 2005, 46% sending the form to
Maximum Tax Rates below) in effect at but before January 1, 2007 the IRS. . . . . . . . . . . 1 hr., 3 min.
the time of the decedent's death unless
all of the following conditions are met. After December 31, 2006, 45%
• The decedent's executor has but before January 1, 2010 If you have comments concerning the
designated a single person to be accuracy of these time estimates or
responsible for filing Form 706-QDT After December 31, 2009, 35%*
for all of the trusts (designated filer). but before January 1, 2013 suggestions for making this form
simpler, we would be happy to hear
• The designated filer is either an from you. You can send us comments
individual who is a U.S. citizen or is After December 31, 2012 40%
through IRS.gov/FormComments. Or
a domestic corporation. * Special rules can apply for 2010. For more you can write to:
• The designated filer meets the information, see Pub. 4895, Tax Treatment
requirements of all applicable of Property Acquired From a Decedent Internal Revenue Service
regulations. Dying in 2010. Tax Forms and Publications
Further, if the return is being filed 1111 Constitution Ave. NW,
IR-6526
because of the death of the surviving Line 14. Make the check payable to
Washington, DC 20224
spouse, then in figuring line 10, any “United States Treasury.” Please write
foreign death taxes paid by the estate of the surviving spouse's SSN (or ITIN, if
the surviving spouse may be used in applicable) and “Form 706-QDT” on the Do not send the tax form to this
determining the allowable credits in check to assist us in posting it to the address. Instead, see Where To File,
recomputing the decedent's estate tax, proper account. earlier.
if all of the following conditions are met.

Instructions for Form 706-QDT (Rev. 9-2021) -7-

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