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Department of the Treasury
Internal Revenue Service
Instructions for

Form 706-QDT

(Rev. June 2019)
U.S. Estate Tax Return for Qualified Domestic Trusts

Section references are to the Internal Revenue Trustee/Designated Filer, Line 4. Definitions
Code unless otherwise noted. Spousal election, later.
Qualified domestic trust. A qualified
Future Developments The QDOT rules apply only in those domestic trust (QDOT) is any trust that
For the latest information about situations where a decedent's surviving qualifies for an estate tax marital
developments related to Form 706-QDT spouse is not a U.S. citizen. deduction under section 2056 and also
and its instructions, such as legislation meets all of the following requirements.
enacted after they were published, go to Who Must File • The trust instrument requires that at
IRS.gov/Form706QDT. Either the trustee or the designated filer, least one trustee be either a U.S. citizen
as described below, must file Form or a domestic corporation.
What's New 706-QDT for any year in which the • The trust instrument requires that no
QDOT has a taxable event (defined distribution of corpus from the trust may
New filing address. Effective January be made unless the trustee who is a
below) or makes a distribution on
1, 2019, Form 706-QDT will be filed in U.S. citizen or a domestic corporation
account of hardship.
Kansas City, Missouri. See Where To has the right to withhold from the
File, later. Trustee distribution the QDOT tax imposed on
If the surviving spouse is the beneficiary the distribution.
Reminders of only one QDOT, the trustee of that • The QDOT election under section
Expanded definition of spouse. For QDOT is liable for filing Form 706-QDT 2056A(d) has been made for the trust
federal tax purposes, individuals of the and paying the tax. by the executor of the estate on the
same sex are considered married if they decedent's estate tax return.
The trustee must also file Form
were lawfully married in a state (or • The requirements of all applicable
706-QDT if the surviving spouse is the
foreign country) whose laws authorize regulations have been met.
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 1. Any distribution from a QDOT
designated filer.
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
2013-38 I.R.B. 201, available at Rev. If there is a designated filer, the
Rul. 2013-17, for more details. trustee must still complete a separate b. Any distributions made to the
surviving spouse on account of
Schedule B of Form 706-QDT for each
hardship.
General Instructions trust for which he or she is the trustee
and provide the completed Schedule B 2. The death of the surviving
to the designated filer at least 60 days spouse.
Purpose of Form before the due date for filing Form 3. The failure of the trust to qualify
The trustee or designated filer 706-QDT. as a QDOT.
(described below) of a qualified
domestic trust (QDOT) uses Form Designated Filer Hardship distribution. A distribution
706-QDT to figure and report the estate If the surviving spouse is the beneficiary of principal is treated as made on
tax due on: of more than one QDOT from a single account of hardship if it is made to the
• Certain distributions from the QDOT, decedent, and the decedent's executor spouse from the QDOT in response to
• The value of the property remaining in has made such a designation, then the an immediate and substantial financial
the QDOT on the date of the surviving designated filer selected by the need relating to the spouse's health,
spouse's death, and executor is liable for filing the return and maintenance, education, or support, or
• The corpus portion of certain annuity paying the tax for all QDOTs. This the health, maintenance, education, or
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.

May 28, 2019 Cat. No. 12384F

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Surviving spouse. In these                 Where To File                                 in the space provided and fill in the Paid 
instructions, surviving spouse means       Effective January 1, 2019, file Form          Preparer Use Only area.
the individual who is both the surviving   706-QDT at the following address.             A paid preparer cannot use a social 
spouse of the decedent and also the                                                      security number in the Paid Preparer 
beneficiary of the decedent's QDOT.        Department of the Treasury                    Use Only box. The paid preparer must 
                                           Internal Revenue Service Center               use a preparer tax identification number 
When To File                               Kansas City, MO 64999                         (PTIN). In addition to signing and 
Form 706-QDT is an annual return.                                                        completing the required information, the 
                                           If using a PDS, use this address.             paid preparer must give a copy of the 
Generally, the return to report                                                          completed return to the trustee/
distributions is due on or after January 1 Internal Revenue Submission                   designated filer.
but not later than April 15 of the year    Processing Center
following any calendar year in which a     333 W. Pershing
                                                                                         Supplemental Documents
taxable event occurred or a distribution   Kansas City, MO 64108
                                                                                         You must attach a copy of the trust 
was made on account of hardship.                                                         instrument to the first Form 706-QDT 
                                           Paying the Tax
However, if you are filing the return                                                    filed for the trust. You do not need to 
                                           Generally, the QDOT estate tax is due 
because of the death of the surviving                                                    attach a copy of the trust to any 
                                           by April 15 of the year following the 
spouse, you must file it within 9 months                                                 subsequent filings of Form 706-QDT.
                                           calendar year in which taxable 
following the date of death. You must                                                    If you are filing the return due to the 
                                           distributions were made. However, if the 
also report on that return all reportable                                                death of the surviving spouse, attach a 
                                           surviving spouse died during the year or 
distributions made during the calendar                                                   copy of the death certificate.
                                           if the trust ceased to qualify as a QDOT 
year in which the surviving spouse died. 
                                           during the year, the tax on those events 
This rule may result in a return being                                                   Penalties
                                           and on any taxable distributions 
due before April 15. For example, if the                                                 Section 6651 provides penalties for both 
                                           occurring during that calendar year is 
surviving spouse died on June 14,                                                        late filing and for late payment unless 
                                           due within 9 months following the date 
2019, Form 706-QDT would be due                                                          there is reasonable cause for the delay. 
                                           of death or the failure to qualify.
March 14, 2020, and must include all                                                     The law also provides penalties for 
reportable distributions made during       If the QDOT qualifies, you may elect          willful attempts to evade payment of tax.
2019.                                      under section 6166 to pay the tax in 
                                           installments. You may make either a           Section 6662 provides penalties for 
If the trust ceases to qualify as a        protective or final election by checking      underpayment of estate taxes which 
QDOT, you must file Form 706-QDT           “Yes” on line 3 of Part II—Elections by       exceed $5,000 that are attributable to 
within 9 months of the date on which the   the Trustee/Designated Filer, and             valuation understatements. See 
trust ceased to qualify. You must          attaching the required statements. See        sections 6662(g) and (h) for more 
include on that return any reportable      the instructions under Line 3.                details.
distributions made during the calendar     Installment payments, later, for              Return preparer. Estate tax return 
year of the failure to qualify.            additional information.                       preparers who prepare any return or 
Use Form 4768, Application for             Make the check payable to “United             claim for refund that reflects an 
Extension of Time To File a Return         States Treasury.” Write the surviving         understatement of tax liability due to an 
and/or Pay U.S. Estate (and                spouse's social security number (SSN)         unreasonable position are subject to a 
Generation-Skipping Transfer) Taxes, to    (or individual taxpayer identification        penalty equal to the greater of $1,000 or 
apply for an automatic 6-month             number (ITIN), if applicable) and “Form       50% of the income earned (or to be 
extension of time to file Form 706-QDT.    706-QDT” on the check to assist us in         earned) for the preparation of each such 
Check the “Form 706-QDT” box in Part       posting it to the proper account.             return. Estate tax return preparers who 
II of Form 4768.                                                                         prepare any return or claim for refund 
                                           Signature(s)                                  that reflects an understatement of tax 
                                                                                         liability due to willful or reckless conduct 
Note. An extension of time to file does    If the trustee is filing the return and there 
                                                                                         are subject to a penalty of $5,000 or 
not extend the time to pay the tax.        is more than one trustee listed, all listed 
                                                                                         75% of the income derived (or income 
Private delivery services (PDSs).          trustees must verify the return. All 
                                                                                         to be derived), whichever is greater, for 
You can use certain PDSs designated        trustees are responsible for the return 
                                                                                         the preparation of each such return. See 
by the IRS to meet the "timely mailing as  as filed and are liable for penalties 
                                                                                         section 6694, the related regulations, 
timely filing/paying" rule for tax returns provided for erroneous or false returns.
                                                                                         and Announcement 2009-15, 2009-11 
and payments. Go to IRS.gov/PDS for        The trustee/designated filer who files        I.R.B. 687, available at Announcement 
the current list of designated services.   the return must, in every case, sign the      2009-15, for more information.
The PDS can tell you how to get            declaration on page 1 under penalties of 
written proof of the mailing date.         perjury. The trustee/designated filer         Security for Payment of 
For the IRS mailing address to use if      may use Form 2848, Power of Attorney          the Tax
you’re using a PDS, go to IRS.gov/         and Declaration of Representative, to 
PDSStreetAddresses.                        authorize another person to act for him       Assets in Excess of $2 Million
                                           or her before the IRS.
        PDSs can’t deliver items to P.O.                                                 If the estate tax value of the assets 
                                                                                         passing to the QDOT exceeds $2 
!       boxes. You must use the U.S        Paid Preparer Use Only                        million (determined without regard to 
CAUTION Postal Service to mail any item 
to an IRS P.O. box address.                Generally, anyone who is paid to              any indebtedness), the trust instrument 
                                           prepare the return must sign the return       must require that the trust meet at least 

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one of the following conditions at all The $600,000 may include the value Trustee Completing Schedule B
times during the term of the QDOT. of any related furnishings. Only
• At least one U.S. trustee must be a
bank as defined in section 581. Either election may have been made If a designated filer will file the return,
• The U.S. trustee must furnish a bond by the executor on the estate tax return the trustee must complete all applicable
in favor of the IRS in an amount equal to for the decedent's estate. The election parts of Schedule B for his or her
65% of the fair market value (FMV) of to exclude the personal residence respective trust and provide it to the
the trust assets. amount from the amount of the bond or designated filer at least 60 days before
• The U.S. trustee must furnish an letter of credit may also be made the due date for filing Form 706-QDT.
irrevocable letter of credit issued by a prospectively by the U.S. trustee by Designated Filer Filing the
bank in an amount equal to 65% of the attaching a statement to Form 706-QDT
FMV of the trust assets. claiming the exclusion. This election, Return
whether made by the executor or by a The designated filer must receive a
The trust instrument may also meet trustee, may be canceled by attaching completed Schedule B from the trustee
this requirement by specific reference to such a statement to Form 706-QDT. of every QDOT that has had a
the applicable paragraph of Regulations reportable event or a hardship
section 20.2056A-2(d). Filing a Bond or Letter of Credit distribution during the tax year. The
The QDOT may alternate between If the bond or letter of credit designated filer would then summarize
any of these arrangements provided arrangement is selected, the executor these on Schedule A.
that one of the arrangements is must have filed the bond or letter of
operative at any given time. The QDOT credit with the Form 706 or 706-NA on Complete the return in the following
may give the trustee the discretion to which the QDOT election is made. order.
use any one of the security 1. Part I—General Information on
arrangements, or may limit the trustee to The U.S. trustee must provide a page 1.
using only one or two of the written statement with the bond or letter 2. Part II—Elections by the Trustee/
arrangements. of credit listing the assets that will fund Designated Filer on page 1.
the QDOT, the values of the assets, and
Assets of $2 Million or Less whether any exclusion for a personal 3. Schedule A.
If the estate tax value of the assets residence is being claimed. 4. Part III—Tax Computation on
passing to the QDOT is $2 million or page 1.
less (determined without regard to any Additional Information
indebtedness), the trust instrument must For more information, including Attach each Schedule B to the return
require that the trust meet at least one of additional requirements for a bond and when you file it.
the following conditions at all times letter of credit, details on the exclusion If there is not enough space on a
during the term of the QDOT. of a personal residence, rules on the schedule to list all the items, attach an
• No more than 35% of the FMV of trust disallowance of the marital deduction for additional sheet of the same size to the
assets, determined annually on the last substantial undervaluation of QDOT back of the schedule.
day of the tax year of the trust, will property, rules regarding foreign real
consist of real property located outside property, and certain annual reporting Rounding Off to Whole Dollars
the United States. requirements (concerning ownership of You may round off cents to whole
• The trust will meet the requirements foreign real property, cessation of use of dollars on the return and schedules. If
described above for QDOTs with assets a personal residence, and look-through you do round to whole dollars, you must
in excess of $2 million. rules applied to the ownership of foreign round all amounts. To round, drop
real property), see Regulations section amounts under 50 cents and increase
For this purpose, if more than one 20.2056A-2(d). amounts from 50 cents to 99 cents to
QDOT is established for the benefit of the next dollar. For example, $1.39
the surviving spouse, the value of all of becomes $1 and $2.50 becomes $3.
the QDOTs is aggregated in How To Complete Form
determining whether the $2 million 706-QDT
threshold is exceeded. Specific Instructions
Trustee Filing the Return
Personal Residence If the trustee is filing the complete Part I—General
For the purpose of (1) figuring the $2 return, prepare it in the following order.
Information
million threshold, and (2) determining 1. Part I—General Information on
the amount of any bond or letter of page 1. If trustee files entire return—Lines
credit, the executor of the decedent's 2. Part II—Elections by the Trustee/ 2a, 2b, and 2c. If the trustee is filing
estate may elect to exclude up to Designated Filer on page 1. the entire return, enter the trustee's
$600,000 in the value of real property information on lines 2a, 2b, and 2c.
that meets the following requirements. 3. All of Schedule B (but only lines
• It is used by or held for the use of the 1a and 1b of Part I). Line 2b. If the trustee/designated filer
surviving spouse as a personal 4. Schedule A. is an individual, enter his or her SSN.
Otherwise, enter the employer
residence. 5. Part III—Tax Computation on identification number (EIN) of the
• It is owned directly by the QDOT. page 1. trustee/designated filer.
• It passed or was treated as passing to
the QDOT under the rules for the marital Enter only the totals from Parts II Line 2c. Enter the address at which
deduction when the surviving spouse is through VI of Schedule B in the you wish to receive correspondence
not a U.S. citizen (section 2056(d)(2) corresponding “Total” lines of from the IRS regarding this return. This
(B)). Schedule A. must be an address for the designated

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filer, or if the trustee is filing the return, any method within 6 months after the 5. The qualified property is the
one of the individual trustees who is a surviving spouse's death is valued on percentage of the surviving spouse's
U.S. citizen or a trustee that is a the date of distribution, sale, exchange, gross estate specified in section 2032A.
domestic corporation. or other disposition, whichever occurs
first. Value the property on the date title For definitions and additional
Line 3b. Enter the taxpayer information, see section 2032A and the
passed as a result of the sale,
identification number (TIN) of the related regulations. Also see the Form
exchange, or other disposition.
surviving spouse. The TIN is the SSN or 706 instructions for Part 3—Elections by
ITIN. 2. Any property not distributed, sold, the Executor and the Instructions for
exchanged, or otherwise disposed of Schedule A-1 within the Form 706 itself.
Line 4a. Enter the name of the within the 6-month period is valued on
decedent on whose estate tax return the the date 6 months after the date of the Line 3. Installment payments. If the
QDOT election was made. surviving spouse's death. gross estate includes an interest in a
closely held business, you may be able
Line 4b. Enter the SSN of the decedent 3. Any property that is “affected by
to elect to pay part of the estate tax in
or, if applicable, the number previously mere lapse of time” is valued as of the
installments under section 6166.
assigned to the decedent's estate by the date of the surviving spouse's death.
service center. However, you may change the date of The maximum amount that can be
death value to account for any change paid in installments is that part of the
Part II—Elections by the in value that is not due to “mere lapse of estate tax that is attributable to the
Trustee/Designated Filer time” on the date of its distribution, sale, closely held business. See Determine
If this return is being filed because of the exchange, or other disposition. how much of the estate tax may be paid
in installments under section 6166
death of the surviving spouse, and any For additional details, see Part under Line 3. Section 6166 Installment
property remaining in the QDOT at that 3—Elections by the Executor in the Payments in the separate Instructions
time is includible in the estate of the separate Instructions for Form 706. for Form 706. In general, that amount is
surviving spouse (or would be includible the amount of tax that bears the same
if the surviving spouse had been a U.S. Line 2. Special use valuation of sec-
citizen or resident), then the trustee/ tion 2032A. Under section 2032A, you ratio to the total estate tax that the value
designated filer may elect to apply may elect to value certain farm and of the closely held business included in
certain estate tax benefits on this return, closely held business real property at its the gross estate bears to the adjusted
provided the estate of the surviving farm or business use value rather than gross estate.
spouse would be eligible for these its FMV. You may elect both special use If you check this line to make a
benefits. valuation and alternate valuation. To protective election, you should attach a
elect this valuation, you must check notice of protective election as
Line 1. Alternate valuation. Unless “Yes” on line 2 and complete and attach described in Regulations section
you elect at the time you file this return Schedule A-1 of Form 706 and its 20.6166-1(d). If you check this line to
to adopt alternate valuation under required additional statements. make a final election, you should attach
section 2032, then you must value all the notice of election described in
property of all trusts listed on You must file Schedule A-1 of
Regulations section 20.6166-1(b).
surviving spouse's death. CAUTION attachments with Form
Schedule A, Part III, on the date of the ! Form 706 and its required In computing the adjusted gross
706-QDT for this election to be valid. estate under section 6166(b)(6) for
Note. You may not elect alternate purposes of determining whether an
The total value of the property valued
valuation for any property reported on election may be made under section
under section 2032A may not be
Schedule A, Parts I and II. 6166, the net amount of any real estate
decreased from FMV by more than in a closely held business must be used.
You may not elect alternate valuation $1,160,000 for decedents dying in For definitions and additional
unless the election will decrease both 2019. For later years, the IRS will information, see section 6166 and the
the value of the Schedule A, Part III publish the amount in an annual related regulations. Also see the Form
property, and the net tax due on the revenue procedure. 706 instructions for Part 3—Elections by
return.
Real property may qualify for the the Executor and Line 3. Section 6166
A designated filer filing for multiple section 2032A election if: Installment Payments for a chart on how
trusts must make this election for all of to calculate the amount of tax which
1. The real property is located in the
the Schedule A, Part III property in all of may be paid in installments under
United States,
the trusts, taken as a whole. The section 6166.
election cannot be made unless the 2. The real property is used for
requirements are met for all of the farming or in a trade or business, Bond or lien. The IRS may require that
property. 3. The real property was acquired an estate furnish a surety bond when
You elect alternate valuation by from or passed from the surviving granting the installment payment
checking “Yes” on line 1 and filing Form spouse to a qualified heir of the election. In the alternative, the executor
706-QDT. Once made, the election is surviving spouse, may consent to elect the special lien
provisions of section 6324A in lieu of the
irrevocable. 4. The real property was owned and bond. The IRS will contact you
If you elect alternate valuation, you used in a qualified manner by the regarding the specifics of furnishing the
must value all of the property to which surviving spouse or a member of the bond or electing the special lien. The
the election applies as of the applicable surviving spouse's family for 5 of the 8 IRS will make this determination on a
date as follows. years before the surviving spouse's case-by-case basis, and you may be
death, and
1. Any property distributed, sold, asked to provide additional information.
exchanged, or otherwise disposed of by

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If you elect the lien provisions, EIN, you may apply for one online by street number, ward, subdivision, block
section 6324A requires that the lien be visiting the IRS website at IRS.gov/EIN. and lot, etc. For rural property, report
placed on property having a value equal You may also apply for an EIN by faxing the township, range, landmarks, etc.
to the total deferred tax plus 4 years of or mailing Form SS-4 to the IRS. If the
interest. The property must be expected EIN has not been received by the filing Stocks and bonds. For stocks,
to survive the deferral period, and does time for Form 706-QDT, write “Applied give:
not necessarily have to be property of for” on line 1b. • Number of shares;
the estate. In addition, all of the persons • Whether common or preferred;
Line 2a. You must enter on this line
having an interest in the designated • Issue;
either the name of an individual trustee
property must consent to the creation of • Par value, where needed for
who is a U.S. citizen or a trustee that is
this lien on the property pledged. valuation;
a domestic corporation. If there is more • Price per share;
Line 4. Spousal election. If the than one trustee, enter the one to be • Exact name of corporation;
surviving spouse has become a U.S. contacted by the IRS. List the names of • Principal exchange upon which sold,
citizen, the QDOT tax will not apply to all additional trustees on a sheet of if listed on an exchange; and
any distributions made after the paper attached to this return. Include • CUSIP number (defined below).
surviving spouse became a citizen as the SSN or EIN of all U.S. citizens or For bonds, give:
long as either: domestic corporations. • Quantity and denomination;
• The surviving spouse had been a • Name of obligor;
Line 2b. Enter the SSN or EIN, as
U.S. resident at all times after the death • Date of maturity;
applicable, of the trustee listed on
of the decedent and before becoming a • Interest rate;
line 2a.
citizen, or • Interest due date;
• No QDOT tax had been imposed on Part II—Taxable Distributions • Principal exchange, if listed on an
any distributions prior to the surviving From Prior Years exchange; and
spouse becoming a citizen. • CUSIP number.
Enter here the total of all taxable
You should file a final Form 706-QDT distributions that were or should have If the stock or bond is unlisted, show
to notify the IRS that the QDOT tax no been reported on previously filed Forms the company's principal business office.
longer applies for this reason. 706-QDT. The CUSIP (Committee on Uniform
If the surviving spouse does not meet Security Identification Procedure)
either of the conditions above, the Part III—Current Taxable
QDOT tax will still not apply to Distributions number is a nine-digit number that is
assigned to all stocks and bonds traded
distributions after he or she becomes a Enter here the total amount of corpus on major exchanges and many unlisted
citizen if the surviving spouse elects distributed during the calendar year or securities. Usually, the CUSIP number
both: other period covered by this return and is printed on the face of the stock
• To treat any distributions that were before the date of death of the surviving certificate. If the CUSIP number is not
subject to QDOT tax as taxable gifts for spouse. Include as a distribution on this printed on the certificate, it may be
purposes of determining the estate or line any QDOT estate tax paid during obtained through the company's
gift tax under sections 2001 and 2501, the calendar year out of the QDOT. transfer agent.
respectively, for the year the surviving Include all distributions even if the
spouse became a citizen and all hardship exemption is being claimed. Other personal property. Any
subsequent years; and personal property distributed must be
• To treat any of the decedent's unified Also, include as distributions in this described in enough detail that its value
credit (applicable credit amount) that part any reportable payments to the can be ascertained by the IRS.
was used to reduce the QDOT tax on surviving spouse from nonassignable
taxable distributions as use of the annuities and other arrangements when Column c. Value. The value of a
surviving spouse's own unified credit for the executor has filed with the estate tax distribution is its FMV on the date of
purposes of determining the spouse's return for the decedent's estate an distribution. FMV is the price at which
available unified credit under section agreement to pay section 2056A estate the property would change hands
2505 for the year he or she became a tax on such distributions. For details, between a willing buyer and a willing
citizen and for all subsequent years. see Regulations section 20.2056A-4(c). seller, when neither is forced to buy or
to sell, and both have reasonable
To make these elections, check Column a. Date of distribution. The knowledge of all the relevant facts. FMV
“Yes” on line 4 and attach notification of date of distribution is the date on which may not be determined by a forced sale
the election to this return. the title to the distributed property price, nor by the sale price of the item in
passed from the trustee to the surviving a market other than that in which the
Schedule B spouse. item is most commonly sold to the
Column b. Description. Include in the public. The location of the item must be
Part I—General Information taken into account whenever relevant.
description the name of the individual(s)
If the trustee is filing the entire return, to whom the distribution was made. Stocks and bonds. The FMV of a
the trustee needs to complete only lines
1a and 1b of this part of Schedule B (but Real estate. Describe the real stock or bond (whether listed or
all of Parts II through VI). When estate in enough detail so that the IRS unlisted) is the mean between the
completing Part I on page 1, enter the can easily locate it for inspection and highest and lowest selling prices quoted
remaining trustee's information on lines valuation. For each parcel of real estate, on the valuation date. If only the closing
2a, 2b, and 2c. report the location and, if the parcel is selling prices are available, then the
improved, describe the improvements. FMV is the mean between the quoted
Line 1b. All trusts filing Form 706-QDT For city or town property, report the closing selling price on the valuation
must have an EIN. If you don’t have an

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date and on the trading day before the the surviving spouse's death so that the For details on the marital and
valuation date. If there were no sales on shares of stock at the later valuation charitable deductions, see the
the valuation date, figure the FMV as date do not reasonably represent the instructions for Schedule M and
follows. same property at the date of the Schedule O of Form 706, as applicable.
1. Find the mean between the surviving spouse's death, include those
highest and lowest selling prices on the dividends (except dividends paid from Schedule A
nearest trading day before and the earnings of the corporation after the When a designated filer is filing Form
nearest trading day after the valuation date of the surviving spouse's death) in 706-QDT for more than one trust, use
date. Both trading days must be the alternate valuation. Schedule A to summarize the
reasonably close to the valuation date. Schedule B amounts provided by the
If there is not enough space to list all trustees. Under “EIN of QDOT” (that is,
2. Prorate the difference between of the property, attach additional sheets column a of Parts II, III, and IV), enter
the mean prices to the valuation date. of the same size, using the same format the EIN of the appropriate trust. If the
3. Add or subtract (whichever as Part IV. trustee is filing the return, simply
applies). Column a. Item no. Assign a separate transfer the totals from Schedule B to
See the instructions for Schedule B item number to each separate type of the corresponding “Total” lines on
of Form 706 for additional information property. For example, you can include Schedule A.
on valuing stocks and bonds. under a single item number all stock of
the same issuer and type, but must list Part III—Tax Computation
Column d. Amount of hardship ex- separate types (for example, preferred (Page 1 of Form 706-QDT)
emption claimed. Distributions to the and common) under separate item
surviving spouse on account of hardship numbers. Line 7. Enter the amount of the taxable
are exempt from the QDOT tax. Enter in estate from one of the following as filed
column d the amount of any distribution Column b. Description. See the for the decedent's estate or as finally
for which the hardship exemption is instructions under Part III—Current determined by the IRS.
being claimed. Do not enter any amount Taxable Distributions, Column b. Part 2—Tax Computation, line 3 of
•
here that has not been included in the Description, earlier. Form 706 (for estates of decedents
amount listed in column c. Also, if the Column c. Alternate valuation date. dying before January 1, 2005).
surviving spouse is the beneficiary of If this return involves only one trust, • Part 2—Tax Computation, line 3c of
more than one QDOT, you may not enter the alternate valuation date only if Form 706 (for estates of decedents
claim the hardship exemption unless the you answered “Yes” to question 1 of dying on or after January 1, 2005).
decedent's executor selected a Part II—Elections by the Trustee/ • Part II—Tax Computation, line 1 of
designated filer. See Designated Filer, Designated Filer. Form 706-NA.
earlier.
If the designated filer is filing this Lines 10 and 11. Using the same
Part IV—Taxable Property in return for multiple trusts, the individual revision of Form 706 or Form 706-NA on
Trust at Death of Surviving trustees will complete Part IV, but only which the executor filed the decedent's
Spouse the designated filer can elect alternate estate tax return, recompute the
valuation. To allow the designated filer decedent's net estate tax by substituting
You must report in Part IV all property to make this decision, the trustee must the amounts on line 9 and line 8 of this
remaining in the QDOT on the date of provide on an attachment to Schedule B Form 706-QDT for the decedent's
death of the surviving spouse (or the both the regular and the alternate value taxable estate from one of the following.
date the trust failed to qualify as a (and the alternate valuation date) for all • Part 2—Tax Computation, line 3 of
QDOT, if applicable). This includes both assets, unless the designated filer has Form 706 (for estates of decedents
corpus and undistributed income. notified the trustee that this is not dying before January 1, 2005).
Interest accrued to the date of the required. • Part 2—Tax Computation, line 3c of
surviving spouse's death on bonds, Form 706 (for estates of decedents
Column d. Value. See the instructions
notes, and other interest-bearing dying on or after January 1, 2005).
under Part III—Current Taxable
obligations is property of the QDOT on • Part II—Tax Computation, line 1 of
Distributions, Column c. Value, earlier.
the date of death. Rent accrued to the Form 706-NA.
date of the surviving spouse's death on Parts V and VI—Marital and Prior year versions of Forms 706 and
leased real and personal property is Charitable Deductions 706-NA can be obtained by calling
property of the QDOT on the date of 800-TAX-FORM (800-829-3676) or by
death. Marital and charitable deductions are
allowable for any property that both accessing the IRS website at
Outstanding dividends that were remained in the QDOT on the date of IRS.gov.
declared to stockholders of record on or the surviving spouse's death and was Note that as a result of the
before the date of the surviving includible in the gross estate of the recomputation, some items other than
spouse's death are considered property surviving spouse (or would have been the taxable estate might be different
of the QDOT on the date of death. includible if the surviving spouse had from what was on the decedent's actual
Ordinary dividends declared to been a U.S. citizen or resident). estate tax return. If the decedent's
stockholders of record after the date of estate did not fully use its unified credit,
the surviving spouse's death are not Do not make an entry in Parts V and additional unified credit may be
property of the QDOT on the date of VI unless there is an entry in Part IV of allowable in the recomputation.
death. However, if you have elected Schedule B. Also, the sum of the total of
alternate valuation on line 1 of Part II, the amounts entered in Parts V and VI If the decedent's estate claimed a
page 1, and dividends are declared to cannot exceed the total of the amount credit for tax on prior transfers and the
stockholders of record after the date of entered in Part IV of Schedule B. credit was limited by section 2013(c),

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

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