United States Estate (and Generation-Skipping Transfer) Tax Return

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Instructions for
Form 706-QDT
(Rev. August 2025)

U.S. Estate Tax Return for Qualified Domestic Trusts
Section references are to the Internal Revenue Code unless
otherwise noted.

a taxable event (defined below) or makes a distribution on
account of hardship.

Future Developments

Trustee

For the latest information about developments related to
Form 706-QDT and its instructions, such as legislation
enacted after they were published, go to IRS.gov/
Form706QDT.

What’s New
Form 706-QDT redesign. The Form 706-QDT has been
redesigned to work more efficiently for taxpayers and the IRS.
Electronic payments. The use of paper-based payments
(including checks and money orders) flowing into and out of
the federal government are being transitioned into electronic
payments to reduce delays, risks of fraud, lost payments,
theft, and inefficiencies. See EO 14247, 90 FR 14001, for
more information.
Direct deposit. To the extent permitted by law, the
Secretary of the Treasury will cease issuing paper checks for
all federal disbursements. Direct deposit is now available for
this form. If there is an overpayment when filing your return,
complete Part III, lines 15b, 15c, and 15d to input your direct
deposit information. See Line 15—Overpayment, and
Non-electronic federal disbursement exceptions, later, for
more information.
Making a payment. Payments made to the federal
government must be processed electronically. See
Line 14—Tax Due, and Non-electronic payment exceptions,
later, for information on how to make a payment.

General Instructions
Purpose of Form

The trustee or designated filer (described below) of a
qualified domestic trust (QDOT) uses Form 706-QDT to
figure and report the estate tax due on:
• Certain distributions from the QDOT,
• The value of the property remaining in the QDOT on the
date of the surviving spouse's death, and
• The corpus portion of certain annuity payments.
Under certain circumstances, the trustee/designated filer
uses Form 706-QDT to notify the IRS that the trust is exempt
from future filing because the surviving spouse has become a
U.S. citizen and meets the requirements listed under Line 4.
Spousal Election, later.
The QDOT rules apply only in those situations where a
decedent's surviving spouse is not a U.S. citizen.

Who Must File

The trustee must also file Form 706-QDT if the surviving
spouse is the beneficiary of more than one QDOT, unless the
decedent's executor designated one U.S. trustee as the
designated filer.
If there is more than one trustee for any single trust, each
trustee is liable for filing the return and paying the tax.
If there is a designated filer, the trustee of each trust must
still complete a separate Schedule B of Form 706-QDT for
each trust and provide the completed Schedule B to the
designated filer at least 60 days before the due date for filing
Form 706-QDT.

Designated Filer

If the surviving spouse is the beneficiary of more than one
QDOT from a single decedent, and the decedent's executor
has made such a designation, then the designated filer
selected by the executor is liable for filing the return and
paying the tax for all QDOTs. This designation can be made
on either the decedent's estate tax return or the first Form
706-QDT that is timely filed.
In this case, the trustee of each QDOT is responsible for
completing Schedule B of Form 706-QDT for each trust and
giving it to the designated filer.

Definitions
Qualified domestic trust. A qualified domestic trust
(QDOT) is any trust that qualifies for an estate tax marital
deduction under section 2056 and also meets all of the
following requirements.
• The trust instrument requires that at least one trustee be
either a U.S. citizen or a domestic corporation.
• The trust instrument requires that no distribution of
corpus from the trust may be made unless the trustee
who is a U.S. citizen or a domestic corporation has the
right to withhold from the distribution the QDOT tax
imposed on the distribution.
• The QDOT election under section 2056A(d) has been
made for the trust by the executor of the estate on the
decedent's estate tax return.
• The requirements of all applicable regulations have been
met.
Taxable event. A taxable event is any of the following.

Either the trustee or the designated filer, as described below,
must file Form 706-QDT for any year in which the QDOT has

Apr 11, 2025

If the surviving spouse is the beneficiary of only one QDOT,
the trustee of that QDOT is liable for filing Form 706-QDT and
paying the tax.

1. Any distribution from a QDOT (and certain annuity
payments) before the death of the surviving spouse,
except:

Instructions for Form 706QDT (Rev. 8-2025) Catalog Number 12384F
Department of the Treasury Internal Revenue Service www.irs.gov

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a. Distributions of income to the surviving spouse,
and
b. Any distributions made to the surviving spouse on
account of hardship.
2. The death of the surviving spouse.
3. The failure of the trust to qualify as a QDOT.
Hardship distribution. A distribution of principal is treated
as made on account of hardship if it is made to the spouse
from the QDOT in response to an immediate and substantial
financial need relating to the spouse's health, maintenance,
education, or support, or the health, maintenance, education,
or support of any person that the surviving spouse is legally
obligated to support.
Decedent. In these instructions, decedent means the
grantor of the QDOT on whose estate tax return the executor
makes the QDOT election.
Surviving spouse. In these instructions, surviving spouse
means the individual who is both the surviving spouse of the
decedent and also the beneficiary of the decedent's QDOT.
Note. The term “spouse” includes an individual married to a
person of the same sex if the couple is lawfully married under
state (or foreign) law. See Rev. Rul. 2013-17, 2013-38 I.R.B.
201, available at Rev. Rul. 2013-17, for more details.

When To File

Form 706-QDT is an annual return.
Generally, the return to report distributions is due on or
after January 1 but not later than April 15 of the year following
any calendar year in which a taxable event occurred or a
distribution was made on account of hardship.
However, if you are filing the return because of the death
of the surviving spouse, you must file it within 9 months
following the date of death. You must also report on that
return all reportable distributions made during the calendar
year in which the surviving spouse died. This rule may result
in a return being due before April 15. For example, if the
surviving spouse died on June 14, 2025, Form 706-QDT
would be due March 14, 2026, and must include all
reportable distributions made during 2025.
If the trust ceases to qualify as a QDOT, you must file Form
706-QDT within 9 months of the date on which the trust
ceased to qualify. You must include on that return any
reportable distributions made during the calendar year of the
failure to qualify.
Use Form 4768, Application for Extension of Time To File
a Return and/or Pay U.S. Estate (and Generation-Skipping
Transfer) Taxes, to apply for an automatic 6-month extension
of time to file Form 706-QDT. Check the “Form 706-QDT” box
in Part II of Form 4768.
Note. An extension of time to file does not extend the time to
pay the tax.

Private delivery services (PDSs). You can use certain
PDSs designated by the IRS to meet the "timely mailing as
timely filing/paying" rule for tax returns and payments. Go to
IRS.gov/PDS for the current list of designated services.
The PDS can tell you how to get written proof of the
mailing date.
For the IRS mailing address to use if you’re using a PDS,
go to IRS.gov/PDSStreetAddresses.
2

!

CAUTION

PDSs can’t deliver items to P.O. boxes. You must use
the U.S Postal Service to mail any item to an IRS P.O.
box address.

Where To File

File Form 706-QDT at the following address.
Department of the Treasury
Internal Revenue Service Center
Kansas City, MO 64999
If using a PDS, use this address.
Internal Revenue Submission Processing Center
333 W. Pershing
Kansas City, MO 64108

Paying the Tax

Generally, the QDOT estate tax is due by April 15 of the year
following the calendar year in which taxable distributions
were made. However, if the surviving spouse died during the
year or if the trust ceased to qualify as a QDOT during the
year, the tax on those events and on any taxable distributions
occurring during that calendar year is due within 9 months
following the date of death or the failure to qualify.
If the QDOT qualifies, you may elect under section 6166 to
pay the tax in installments. You may make either a protective
or final election by checking “Yes” on line 3 of Part
II—Elections by the Trustee/Designated Filer, and attaching
the required statements. See the instructions under Line 3.
Installment Payments, later, for additional information.
See Line 14—Tax Due, later for details on how to make a
payment.

Supplemental Documents

You must attach a copy of the trust instrument to the first
Form 706-QDT filed for the trust. You do not need to attach a
copy of the trust to any subsequent filings of Form 706-QDT.
If you are filing the return due to the death of the surviving
spouse, attach a copy of the death certificate.

Penalties

Section 6651 provides penalties for both late filing and for
late payment unless there is reasonable cause for the delay.
The law also provides penalties for willful attempts to evade
payment of tax.
Section 6662 provides penalties for underpayment of
estate taxes which exceed $5,000 that are attributable to
valuation understatements. See sections 6662(g) and (h) for
more details.
Return preparer. Estate tax return preparers who prepare
any return or claim for refund that reflects an understatement
of tax liability due to an unreasonable position are subject to
a penalty equal to the greater of $1,000 or 50% of the income
earned (or to be earned) for the preparation of each such
return. Estate tax return preparers who prepare any return or
claim for refund that reflects an understatement of tax liability
due to willful or reckless conduct are subject to a penalty of
$5,000 or 75% of the income derived (or income to be
derived), whichever is greater, for the preparation of each
such return. See section 6694(a) and 6694(b), the related
regulations, and Announcement 2009-15, 2009-11 I.R.B.
Instructions for Form 706-QDT (Rev. 8-2025)

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Security for Payment of the Tax

by the U.S. trustee by attaching a statement to Form
706-QDT claiming the exclusion. This election, whether
made by the executor or by a trustee, may be canceled by
attaching such a statement to Form 706-QDT.

Assets in Excess of $2 Million

Filing a Bond or Letter of Credit

687, available at Announcement 2009-15, for more
information.

If the estate tax value of the assets passing to the QDOT
exceeds $2 million (determined without regard to any
indebtedness), the trust instrument must require that the trust
meet at least one of the following conditions at all times
during the term of the QDOT.
• At least one U.S. trustee must be a bank as defined in
section 581.
• The U.S. trustee must furnish a bond in favor of the IRS in
an amount equal to 65% of the fair market value (FMV) of
the trust assets.
• The U.S. trustee must furnish an irrevocable letter of
credit issued by a bank in an amount equal to 65% of the
FMV of the trust assets.
The trust instrument may also meet this requirement by
specific reference to the applicable paragraph of Regulations
section 20.2056A-2(d).
The QDOT may alternate between any of these
arrangements provided that one of the arrangements is
operative at any given time. The QDOT may give the trustee
the discretion to use any one of the security arrangements, or
may limit the trustee to using only one or two of the
arrangements.

Assets of $2 Million or Less

If the estate tax value of the assets passing to the QDOT is
$2 million or less (determined without regard to any
indebtedness), the trust instrument must require that the trust
meet at least one of the following conditions at all times
during the term of the QDOT.
• No more than 35% of the FMV of trust assets,
determined annually on the last day of the tax year of the
trust, will consist of real property located outside the
United States.
• The trust will meet the requirements described above for
QDOTs with assets in excess of $2 million.

For this purpose, if more than one QDOT is established for
the benefit of the surviving spouse, the value of all of the
QDOTs is aggregated in determining whether the $2 million
threshold is exceeded.

Personal Residence

For the purpose of (1) figuring the $2 million threshold, and
(2) determining the amount of any bond or letter of credit, the
executor of the decedent's estate may elect to exclude up to
$600,000 in the value of real property that meets the
following requirements.
• It is used by or held for the use of the surviving spouse as
a personal residence.
• It is owned directly by the QDOT.
• It passed or was treated as passing to the QDOT under
the rules for the marital deduction when the surviving
spouse is not a U.S. citizen (section 2056(d)(2)(B)).
The $600,000 may include the value of any related
furnishings.
Either election may have been made by the executor on
the estate tax return for the decedent's estate. The election to
exclude the personal residence amount from the amount of
the bond or letter of credit may also be made prospectively
Instructions for Form 706-QDT (Rev. 8-2025)

If the bond or letter of credit arrangement is selected, the
executor must have filed the bond or letter of credit with the
Form 706 or 706-NA on which the QDOT election is made.
The U.S. trustee must provide a written statement with the
bond or letter of credit listing the assets that will fund the
QDOT, the values of the assets, and whether any exclusion
for a personal residence is being claimed.

Additional Information

For more information, including additional requirements for a
bond and letter of credit, details on the exclusion of a
personal residence, rules on the disallowance of the marital
deduction for substantial undervaluation of QDOT property,
rules regarding foreign real property, and certain annual
reporting requirements (concerning ownership of foreign real
property, cessation of use of a personal residence, and
look-through rules applied to the ownership of foreign real
property), see Regulations section 20.2056A-2(d).

How To Complete Form 706-QDT
Trustee Filing the Return

If the trustee is filing the complete return, prepare it in the
following order.
1. Part I—General Information.
2. Part II—Elections by the Trustee/Designated Filer.
3. All of Schedule B (but only lines 1a and 1b of Part I).
4. Schedule A.
5. Part III—Tax Computation.
Enter only the totals from Parts II through V of Schedule B
in the corresponding “Total” lines of Schedule A.

Trustee Completing Schedule B Only

If a designated filer will file the return, the trustee must
complete all applicable parts of Schedule B for their
respective trust and provide it to the designated filer at least
60 days before the due date for filing Form 706-QDT.

Designated Filer Filing the Return

The designated filer must receive a completed Schedule B
from the trustee of every QDOT that has had a reportable
event or a hardship distribution during the tax year. The
designated filer would then summarize these on Schedule A.
Complete the return in the following order.
1. Part I—General Information.
2. Part II—Elections by the Trustee/Designated Filer.
3. Schedule A.
4. Part III—Tax Computation.
Attach each Schedule B to the return when you file it.
If there is not enough space on a schedule to list all the
items, attach additional copies of the schedule, as applicable.
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Rounding Off to Whole Dollars

You may round off cents to whole dollars on the return and
schedules. If you do round to whole dollars, you must round
all amounts. To round, drop amounts under 50 cents and
increase amounts from 50 cents to 99 cents to the next dollar.
For example, $1.39 becomes $1 and $2.50 becomes $3.

Specific Instructions
Part I—General Information
If trustee files entire return. If the trustee is filing the entire
return, enter the trustee's information on lines 2a, 2b, 2c, 2d,
2e, 2f, and 2g.

Line 2b

If the trustee/designated filer is an individual, enter their SSN.
Otherwise, enter the employer identification number (EIN) of
the trustee/designated filer.

Line 2c, 2d, 2e, 2f, and 2g

Enter the address at which you wish to receive
correspondence from the IRS regarding this return. This must
be an address for the designated filer, or if the trustee is filing
the return, one of the individual trustees who is a U.S. citizen
or a trustee that is a domestic corporation.

Line 3b

Enter the taxpayer identification number (TIN) of the surviving
spouse. The TIN is the SSN or ITIN.

Line 4a

Enter the name of the decedent on whose estate tax return
the QDOT election was made.

Line 4b

Enter the SSN of the decedent or, if applicable, the number
previously assigned to the decedent's estate by the service
center.

Part II—Elections by the Trustee/
Designated Filer

If this return is being filed because of the death of the
surviving spouse, and any property remaining in the QDOT at
that time is includible in the estate of the surviving spouse (or
would be includible if the surviving spouse had been a U.S.
citizen or resident), then the trustee/designated filer may
elect to apply certain estate tax benefits on this return,
provided the estate of the surviving spouse would be eligible
for these benefits.

Line 1. Alternate Valuation

Unless you elect at the time you file this return to adopt
alternate valuation under section 2032, then you must value
all property of all trusts listed on Schedule A, columns (e) and
(f), on the date of the surviving spouse's death.
Note. You may not elect alternate valuation for any property
reported on Schedule A, columns (b) and (d).
You may not elect alternate valuation unless the election
will decrease both the value of the Schedule A, columns (e)
and (f) property, and the net tax due on the return.
A designated filer filing for multiple trusts must make this
election for all of the Schedule A, columns (e) and (f) property

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in all of the trusts, taken as a whole. The election cannot be
made unless the requirements are met for all of the property.
You elect alternate valuation by checking “Yes” on line 1
and filing Form 706-QDT. Once made, the election is
irrevocable.
If you elect alternate valuation, you must value all of the
property to which the election applies as of the applicable
date as follows.
1. Any property distributed, sold, exchanged, or otherwise
disposed of by any method within 6 months after the
surviving spouse's death is valued on the date of
distribution, sale, exchange, or other disposition,
whichever occurs first. Value the property on the date
title passed as a result of the sale, exchange, or other
disposition.
2. Any property not distributed, sold, exchanged, or
otherwise disposed of within the 6-month period is
valued on the date 6 months after the date of the
surviving spouse's death.
3. Any property that is “affected by mere lapse of time” is
valued as of the date of the surviving spouse's death.
However, you may change the date of death value to
account for any change in value that is not due to “mere
lapse of time” on the date of its distribution, sale,
exchange, or other disposition.
For additional details, see Part III—Elections by the
Executor in the separate Instructions for Form 706.

Line 2. Special Use Valuation of Section 2032A

Under section 2032A, you may elect to value certain farm
and closely held business real property at its farm or
business use value rather than its FMV. You may elect both
special use valuation and alternate valuation. To elect this
valuation, you must check “Yes” on line 2 and complete and
attach Schedule T (Form 706) and its required additional
statements.

!

CAUTION

You must file Schedule T (Form 706) and its required
attachments with Form 706-QDT for this election to
be valid.

The total value of the property valued under section 2032A
may not be decreased from FMV by more than $1,420,000
for decedents dying in 2025. For later years, the IRS will
publish the amount in an annual revenue procedure.
Real property may qualify for the section 2032A election if:
1. The real property is located in the United States,
2. The real property is used for farming or in a trade or
business,
3. The real property was acquired from or passed from the
surviving spouse to a qualified heir of the surviving
spouse,
4. The real property was owned and used in a qualified
manner by the surviving spouse or a member of the
surviving spouse's family for 5 of the 8 years before the
surviving spouse's death, and
5. The qualified property is the percentage of the surviving
spouse's gross estate specified in section 2032A.
For definitions and additional information, see section
2032A and the related regulations. Also see Part
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III—Elections by the Executor and the Instructions for
Schedule T (Form 706), in the Instructions for Form 706.

Line 3. Installment Payments

If the gross estate includes an interest in a closely held
business, you may be able to elect to pay part of the estate
tax in installments under section 6166.

distributions after the surviving spouse becomes a citizen if
the surviving spouse elects both:
• To treat any distributions that were subject to QDOT tax
as taxable gifts for purposes of determining the estate or
gift tax under sections 2001 and 2501, respectively, for
the year the surviving spouse became a citizen and all
subsequent years; and
• To treat any of the decedent's unified credit (applicable
credit amount) that was used to reduce the QDOT tax on
taxable distributions as use of the surviving spouse's own
unified credit for purposes of determining the spouse's
available unified credit under section 2505 for the year
the surviving spouse became a citizen and for all
subsequent years.

The maximum amount that can be paid in installments is
that part of the estate tax that is attributable to the closely
held business. See Determine how much of the estate tax
may be paid in installments under section 6166 under Line 3.
Section 6166 Installment Payments in the separate
Instructions for Form 706. In general, that amount is the
amount of tax that bears the same ratio to the total estate tax
that the value of the closely held business included in the
gross estate bears to the adjusted gross estate.

To make these elections, check “Yes” on line 4 and attach
notification of the election to this return.

If you check this line to make a protective election, you
should attach a notice of protective election as described in
Regulations section 20.6166-1(d).

Part I—General Information

If you check this line to make a final election, you should
attach the notice of election described in Regulations section
20.6166-1(b).
In computing the adjusted gross estate under section
6166(b)(6) for purposes of determining whether an election
may be made under section 6166, the net amount of any real
estate in a closely held business must be used.
For definitions and additional information, see section
6166 and the related regulations. Also see the Form 706
instructions for Part III—Elections by the Executor and Line 3.
Section 6166 Installment Payments for a worksheet on how
to calculate the amount of tax which may be paid in
installments under section 6166.
Bond or lien. The IRS may require that an estate furnish a
surety bond when granting the installment payment election.
In the alternative, the executor may consent to elect the
special lien provisions of section 6324A in lieu of the bond.
The IRS will contact you regarding the specifics of furnishing
the bond or electing the special lien. The IRS will make this
determination on a case-by-case basis, and you may be
asked to provide additional information.
If you elect the lien provisions, section 6324A requires that
the lien be placed on property having a value equal to the
total deferred tax plus 4 years of interest. The property must
be expected to survive the deferral period, and does not
necessarily have to be property of the estate. In addition, all
of the persons having an interest in the designated property
must consent to the creation of this lien on the property
pledged.

Line 4. Spousal Election

If the surviving spouse has become a U.S. citizen, the QDOT
tax will not apply to any distributions made after the surviving
spouse became a citizen as long as either:
• The surviving spouse had been a U.S. resident at all
times after the death of the decedent and before
becoming a citizen, or
• No QDOT tax had been imposed on any distributions
prior to the surviving spouse becoming a citizen.
You should file a final Form 706-QDT to notify the IRS that
the QDOT tax no longer applies for this reason.

Schedule B
If the trustee is filing the entire return, the trustee needs to
complete the following parts of Schedule B.
• Schedule B, Part I, lines 1a and 1b.
• Schedule B, all of Parts II through V.

When completing Part I on page 1, enter the remaining
trustee's information on lines 2a, 2b, 2c, 2d, 2e, 2f, and 2g.

Line 1b
All trusts filing Form 706-QDT must have an EIN. If you don’t
have an EIN, you may apply for one online by visiting the IRS
website at IRS.gov/EIN. You may also apply for an EIN by
faxing or mailing Form SS-4 to the IRS. If the EIN has not
been received by the filing time for Form 706-QDT, write
“Applied for” on line 1b.

Line 2a
You must enter on this line either the name of an individual
trustee who is a U.S. citizen or a trustee that is a domestic
corporation. If there is more than one trustee, enter the one to
be contacted by the IRS. List the names of all additional
trustees on a sheet of paper attached to this return. Include
the SSN or EIN of all U.S. citizens or domestic corporations.

Line 2b
Enter the SSN or EIN, as applicable, of the trustee listed on
line 2a.

Part II—Taxable Distributions
Columns (a) and (b), Prior Years Taxable
Distributions
Enter on columns (a) and (b) the total of all taxable
distributions that were or should have been reported on
previously filed Forms 706-QDT.
If there is not enough space to list all prior years taxable
distributions, attach additional copies of Schedule B, Part II,
columns (a) and (b).

If the surviving spouse does not meet either of the
conditions above, the QDOT tax will still not apply to
Instructions for Form 706-QDT (Rev. 8-2025)

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Columns (c) through (g), Current Year Taxable
Distributions

Other personal property. Any personal property
distributed must be described in enough detail that its value
can be ascertained by the IRS.

You must report on columns (c) through (g) the total amount
of corpus distributed during the calendar year or other period
covered by this return and before the date of death of the
surviving spouse. Include as a distribution any QDOT estate
tax paid during the calendar year out of the QDOT. Include all
distributions even if the hardship exemption is being claimed.

Column (e), value. The value of a distribution is its FMV on
the date of distribution. FMV is the price at which the property
would change hands between a willing buyer and a willing
seller, when neither is forced to buy or to sell, and both have
reasonable knowledge of all the relevant facts. FMV may not
be determined by a forced sale price, nor by the sale price of
the item in a market other than that in which the item is most
commonly sold to the public. The location of the item must be
taken into account whenever relevant.
Stocks and bonds. The FMV of a stock or bond (whether
listed or unlisted) is the mean between the highest and
lowest selling prices quoted on the valuation date. If only the
closing selling prices are available, then the FMV is the mean
between the quoted closing selling price on the valuation
date and on the trading day before the valuation date. If there
were no sales on the valuation date, figure the FMV as
follows.

Also, include as distributions in this part any reportable
payments to the surviving spouse from nonassignable
annuities and other arrangements when the executor has
filed with the estate tax return for the decedent's estate an
agreement to pay section 2056A estate tax on such
distributions. For details, see Regulations section
20.2056A-4(c).
If there is not enough space to list all current year taxable
distributions, attach additional copies of Schedule B, Part II,
columns (c) through (g).
Column (c), date of distribution. The date of distribution is
the date on which the title to the distributed property passed
from the trustee to the surviving spouse.
Column (d), description. Include in the description the
name of the individual(s) to whom the distribution was made.
Real estate. Describe the real estate in enough detail so
that the IRS can easily locate it for inspection and valuation.
For each parcel of real estate, report the location and, if the
parcel is improved, describe the improvements. For city or
town property, report the street number, ward, subdivision,
block and lot, etc. For rural property, report the township,
range, landmarks, etc.
Stocks. For stocks, give:
• Number of shares;
• Whether common or preferred;
• Issue;
• Par value, where needed for valuation;
• Price per share;
• Exact name of corporation;
• Principal exchange upon which sold, if listed on an
exchange; and
• CUSIP number (defined below).
If the stock is unlisted, show the company's principal
business office.
Bonds. For bonds, give:
• Quantity and denomination;
• Name of obligor;
• Date of maturity;
• Interest rate;
• Interest due date;
• Principal exchange, if listed on an exchange; and
• CUSIP number.
If the bond is unlisted, show the company's principal
business office.
CUSIP number. The CUSIP (Committee on Uniform
Security Identification Procedure) number is a nine-digit
number that is assigned to all stocks and bonds traded on
major exchanges and many unlisted securities. Usually, the
CUSIP number is printed on the face of the stock certificate.
If the CUSIP number is not printed on the certificate, it may
be obtained through the company's transfer agent.

6

1. Find the mean between the highest and lowest selling
prices on the nearest trading day before and the nearest
trading day after the valuation date. Both trading days
must be reasonably close to the valuation date.
2. Prorate the difference between the mean prices to the
valuation date.
3. Add or subtract (whichever applies).
See the Instructions for Schedule B (Form 706), in the
Instructions for Form 706 for additional information on valuing
stocks and bonds.
Column (f), amount of hardship exemption claimed.
Distributions to the surviving spouse on account of hardship
are exempt from the QDOT tax. Enter in column (f) the
amount of any distribution for which the hardship exemption
is being claimed. Do not enter any amount here that has not
been included in the amount listed in column (e). Also, if the
surviving spouse is the beneficiary of more than one QDOT,
you may not claim the hardship exemption unless the
decedent's executor selected a designated filer. See
Designated Filer, earlier.

Part III—Taxable Property in Trust at Death of
Surviving Spouse

You must report in Part III all property remaining in the QDOT
on the date of death of the surviving spouse (or the date the
trust failed to qualify as a QDOT, if applicable). This includes
both corpus and undistributed income.
Interest accrued to the date of the surviving spouse's
death on bonds, notes, and other interest-bearing obligations
is property of the QDOT on the date of death. Rent accrued
to the date of the surviving spouse's death on leased real and
personal property is property of the QDOT on the date of
death.
Outstanding dividends that were declared to stockholders
of record on or before the date of the surviving spouse's
death are considered property of the QDOT on the date of
death. Ordinary dividends declared to stockholders of record
after the date of the surviving spouse's death are not property
of the QDOT on the date of death. However, if you have
elected alternate valuation on line 1 of Part II, page 1, and
dividends are declared to stockholders of record after the
date of the surviving spouse's death so that the shares of
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stock at the later valuation date do not reasonably represent
the same property at the date of the surviving spouse's
death, include those dividends (except dividends paid from
earnings of the corporation after the date of the surviving
spouse's death) in the alternate valuation.

column (c), EIN of QDOT, enter the EIN of the appropriate
trust. If the trustee is filing the return, simply transfer the totals
from Schedule B to the corresponding “Total” lines on
Schedule A.

If there is not enough space to list all of the property,
attach additional copies of Schedule B, Part III.

Part III—Tax Computation (Page 1 of
Form 706-QDT)

Column (a), Item No.

Line 7

Assign a separate item number to each separate type of
property. For example, you can include under a single item
number all stock of the same issuer and type, but must list
separate types (for example, preferred and common) under
separate item numbers.

Column (b), Description
See the instructions under Part II—Taxable Distributions,
column (d), description, earlier.

Column (c), Alternate Valuation Date
If this return involves only one trust, enter the alternate
valuation date only if you answered “Yes” to line 1 of Part II,
page 1.
If the designated filer is filing this return for multiple trusts,
the individual trustees will complete Part III, but only the
designated filer can elect alternate valuation. To allow the
designated filer to make this decision, the trustee must
provide on an attachment to Schedule B both the regular and
the alternate value (and the alternate valuation date) for all
assets, unless the designated filer has notified the trustee
that this is not required.

Column (d), Value
See the instructions under Part II—Taxable Distributions,
column (e), value, earlier.

Parts IV and V—Marital and Charitable
Deductions

Marital and charitable deductions are allowable for any
property that both remained in the QDOT on the date of the
surviving spouse's death and was includible in the gross
estate of the surviving spouse (or would have been includible
if the surviving spouse had been a U.S. citizen or resident).
Do not make an entry in Parts IV and V unless there is an
entry in Part III of Schedule B. Also, the sum of the total of the
amounts entered in Parts IV and V cannot exceed the total of
the amount entered in Part III of Schedule B.
For details on the marital and charitable deductions, see
the instructions for Schedule M (Form 706) and Schedule O
(Form 706), in the Instructions for Form 706, as applicable.
If there is not enough space to list all marital and
charitable deductions, attach additional copies of
Schedule B, Parts IV and V, as applicable.

Schedule A

When a designated filer is filing Form 706-QDT for more than
one trust, use Schedule A to summarize the Schedule B
amounts provided by the trustees. Under Schedule A,
Instructions for Form 706-QDT (Rev. 8-2025)

Enter the amount of the taxable estate from one of the
following as filed for the decedent's estate or as finally
determined by the IRS.
• Part 2—Tax Computation, line 3 of Form 706 (for estates
of decedents dying before January 1, 2005).
• Part 2—Tax Computation, line 3c of Form 706 (for
estates of decedents dying on or after January 1, 2005).
• Part II—Tax Computation, line 1 of Form 706-NA.

Lines 10 and 11

Using the same revision of Form 706 or Form 706-NA on
which the executor filed the decedent's estate tax return,
recompute the decedent's net estate tax by substituting the
amounts on line 9 and line 8 of this Form 706-QDT for the
decedent's taxable estate from one of the following.
• Part 2—Tax Computation, line 3 of Form 706 (for estates
of decedents dying before January 1, 2005).
• Part 2—Tax Computation, line 3c of Form 706 (for
estates of decedents dying on or after January 1, 2005).
• Part II—Tax Computation, line 1 of Form 706-NA.
Prior year versions of Forms 706 and 706-NA can be
obtained by accessing the IRS website at IRS.gov/Forms, or
by calling 800-TAX-FORM (800-829-3676).
Note that as a result of the recomputation, some items
other than the taxable estate might be different from what
was on the decedent's actual estate tax return. If the
decedent's estate did not fully use its unified credit, additional
unified credit may be allowable in the recomputation.
If the decedent's estate claimed a credit for tax on prior
transfers and the credit was limited by section 2013(c), the
recomputed credit may be different than on the return as
filed.
Also, if the decedent's estate claimed a credit for state
death taxes (for decedents dying before January 1, 2005) or
a credit for foreign death taxes and the amount of the credit
that could be claimed was limited by section 2011(b) (prior to
its repeal on January 1, 2005) or section 2014(b),
respectively, the recomputed credit may be different.
If the final determination of the tax due on the estate of the
decedent has not been made at the time this return is filed,
you must figure the tax on these lines using the highest rate
of tax (see Table of Maximum Tax Rates, later) in effect at the
time of the decedent's death.
Also, if there is more than one QDOT with respect to any
decedent, you must figure the tax on lines 10 and 11 using
the highest rate of tax (see Table of Maximum Tax Rates,
later) in effect at the time of the decedent's death unless all of
the following conditions are met.
• The decedent's executor has designated a single person
to be responsible for filing Form 706-QDT for all of the
trusts (designated filer).
• The designated filer is either an individual who is a U.S.
citizen or is a domestic corporation.
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• The designated filer meets the requirements of all
applicable regulations.

Further, if the return is being filed because of the death of
the surviving spouse, then in figuring line 10, any foreign
death taxes paid by the estate of the surviving spouse may
be used in determining the allowable credits in recomputing
the decedent's estate tax, if all of the following conditions are
met.
1. This return is being filed because of the death of the
surviving spouse.
2. Any property remaining in the QDOT at that time is
includible in the estate of the surviving spouse (or would
be includible if the surviving spouse had been a U.S.
citizen or resident).
3. The credit is allowable (or would be allowable if the
surviving spouse had been a U.S. citizen or resident) to
the estate of the surviving spouse with respect to the
property referred to in (2), above.
4. The taxes were actually paid to a foreign jurisdiction.
For details on claiming this credit, see the Instructions for
Form 706. If you claim the foreign death tax credit, you must
complete and attach Schedule P (Form 706).

Table of Maximum Tax Rates
The maximum
If the decedent died . . . . . . . . . . . . . . . . tax rate is . . . . .

in advance of the due date and, if necessary, may be
changed or canceled up to 2 business days before the
scheduled payment date.
To get more information about EFTPS or to enroll in
EFTPS, visit EFTPS.gov or call 800-555-4477. To contact
EFTPS using Telecommunications Relay Service (TRS) for
people who are deaf, hard of hearing, or have a speech
disability, dial 711 and then provide the TRS assistant the
800-555-4477 number, above, or 800-733-4829. Additional
information about EFTPS is available in Pub. 966, Electronic
Federal Tax Payment System: A Guide to Getting Started.
Same-day wire. Payment of the tax due shown on Form 706
may be submitted electronically through same-day wire from
your financial institution. Contact your financial institution for
availability, cost, and time frames.
What you need to know about making a same-day wire
payment.
• You do not need to enroll to make a same-day wire
payment, and no PIN is needed.
• Your financial institution may charge a fee for this service.
• The cutoff time to make a same-day wire payment is 5
p.m. Eastern time. Your financial institution may have an
earlier cutoff time.
• Download and complete page 1 of the Same-Day
Taxpayer Worksheet, and provide pages 1 and 2 to your
financial institution. See How do I make an electronic
payment under Frequently asked questions on estate
taxes, on IRS.gov for the worksheet and more
information.

After December 31, 2004, but before
January 1, 2006

47%

Non-electronic payment exceptions. If you qualify for one
of the exceptions below, a check or money order may still be
permitted as a payment option.

After December 31, 2005, but before
January 1, 2007

46%

1. Individuals who do not have access to banking services
or electronic payment systems.

After December 31, 2006, but before
January 1, 2010

45%

2. Certain emergency payments where electronic
disbursement would cause undue hardship, as
contemplated in 31 C.F.R. Part 208.

After December 31, 2009, but before
January 1, 2013

35%*

3. National security- or law enforcement-related activities
where non-EFT transactions are necessary or desirable.

After December 31, 2012

40%

4. Other circumstances as determined by the Secretary of
the Treasury, as reflected in regulations or other
guidance.

* Special rules can apply for 2010. For more information, see Pub.
4895, Tax Treatment of Property Acquired From a Decedent Dying in
2010.

Line 14—Tax Due

Payments made to the federal government must be
processed electronically. See EO 14247, 90 FR 14001, for
more information. There are two methods for making an
electronic payment of estate or gift tax: (1) Electronic Federal
Tax Payment System (EFTPS), or (2) Same-day wire
payment. If you qualify for an exception, an alternative
payment option (check or money order) may be permitted.
See Non-electronic payment exceptions, later, for more
information.
EFTPS. Payment of the tax due may be submitted
electronically through EFTPS. EFTPS is a free service of the
Department of the Treasury.
To be considered timely, payments made through EFTPS
must be completed no later than 8 p.m. Eastern time the day
before the due date. All EFTPS payments must be scheduled
8

Note. If you don't qualify for one of the exceptions above, an
electronic payment option must be used to make a payment.
If you do qualify for an exception above, go to IRS.gov/
Payments/Pay-By-Check-Or-Money-Order for details on what
needs to go on the check to mail your payment.

Line 15—Overpayment

To the extent permitted by law, the Secretary of the Treasury
will cease issuing paper checks for all federal disbursements.
Direct deposit is available for this form. If there is an
overpayment when filing your return, complete Part III, lines
15b, 15c, and 15d to input your direct deposit information. If
you qualify for an exception, an alternative payment option
(paper check) may be permitted. See Non-electronic federal
disbursement exceptions, later, for more information.
Why use direct deposit? You get your refund faster

TIP by direct deposit than you do by check. Payment is

more secure. There is no check that can get lost or
stolen. It is more convenient. You don't have to make a trip to
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the bank to deposit your check. It saves tax dollars. It costs
the government less to refund by direct deposit. It's proven
itself. Nearly 98% of social security and veterans' benefits are
sent electronically using direct deposit.
Account must be in your name. Don't request a deposit of
your refund to an account that isn't in your name. The number
of refunds that can be directly deposited to a single account
or prepaid debit card is limited to three a year. After this limit
is reached, paper checks will be sent instead. Learn more at
IRS.gov/DepositLimit.
Line 15a. If line 15a is under $1, we will send a refund only
on written request.
Line 15b. The routing number must be nine digits. The first
two digits must be 01 through 12 or 21 through 32. Ask your
financial institution for the correct routing number to enter on
line 15b if:
• The routing number on a deposit slip is different from the
routing number on your checks,
• Your deposit is to a savings account that doesn't allow
you to write checks, or
• Your checks state they are payable through a financial
institution different from the one at which you have your
checking account.
Line 15c. Check the appropriate box for the type of account.
Don't check more than one box. You must check the correct
box to ensure your deposit is accepted.
Line 15d. The account number can be up to 17 characters
(both numbers and letters). Include hyphens but omit spaces
and special symbols. Enter the number from left to right and
leave any unused boxes blank. Don't include the check
number.
If the direct deposit to your account is different from the
amount you expected, you will receive an explanation in the
mail about 2 weeks after your refund is deposited.
Reasons your direct deposit will be rejected. If any of
the following apply, your direct deposit request will be
rejected and a check will be sent instead.
• You are asking to have a joint refund deposited to an
individual account, and your financial institution(s) won't
allow this. The IRS isn't responsible if a financial
institution rejects a direct deposit.
• The name on your account doesn't match the name on
the refund, and your financial institution(s) won't allow a
refund to be deposited unless the name on the refund
matches the name on the account.
• Three direct deposits of tax refunds already have been
made to the same account or prepaid debit card.
• You haven't given a valid account number.
• Any numbers or letters on lines 15b through 15d are
crossed out or whited out.

Instructions for Form 706-QDT (Rev. 8-2025)

The IRS isn't responsible for a lost refund if you enter
the wrong account information. Check with your
CAUTION financial institution to get the correct routing and
account numbers and to make sure your direct deposit will be
accepted.

!

Non-electronic federal disbursement exceptions. If you
qualify for one of the exceptions below, a paper check may
still be permitted as a federal disbursement option.
1. Individuals who do not have access to banking services
or electronic payment systems.
2. Certain emergency payments where electronic
disbursement would cause undue hardship, as
contemplated in 31 C.F.R. Part 208.
3. National security- or law enforcement-related activities
where non-EFT transactions are necessary or desirable.
4. Other circumstances as determined by the Secretary of
the Treasury, as reflected in regulations or other
guidance.
Note. If you don't qualify for one of the exceptions above, the
direct deposit information must be entered on lines 15b, 15c,
and 15d. If you do qualify for an exception above, leave lines
15b, 15c, and 15d blank.

Signature(s)

If the trustee is filing the return and there is more than one
trustee listed, all listed trustees must verify the return. All
trustees are responsible for the return as filed and are liable
for penalties provided for erroneous or false returns.
The trustee/designated filer who files the return must, in
every case, sign the declaration on page 1 under penalties of
perjury. The trustee/designated filer may use Form 2848,
Power of Attorney and Declaration of Representative, to
authorize another person to act for the trustee/designated
filer before the IRS.

Paid Preparer Use Only

Generally, anyone who is paid to prepare the return must sign
the return in the space provided and fill in the Paid Preparer
Use Only area.

A paid preparer cannot use a social security number in the
Paid Preparer Use Only box. The paid preparer must use
their valid preparer tax identification number (PTIN). In
addition to signing and completing the required information,
the paid preparer must give a copy of the completed return to
the trustee/designated filer.

9