Waiver of the actual-conveyance requirement for a QDOT after the surviving spouse became a U.S. citizen

Plain-English summary

When someone dies and leaves property to a spouse who is not a U.S. citizen, the usual estate-tax marital deduction is denied unless the property passes into a qualified domestic trust (QDOT), a special trust with a U.S. trustee that guarantees the deferred estate tax will eventually be collected. Here the surviving spouse irrevocably assigned the inherited assets to a QDOT before the estate tax return was filed, and the estate claimed the marital deduction and made the QDOT election on its Form 706. But the spouse never actually conveyed the assets into the trust; they stayed in the spouse's hands. Under the regulations, that actual transfer normally has to be completed before the estate's administration closes, or the marital deduction is lost. Before that happened, the spouse became a U.S. citizen (which ends the QDOT estate tax regime entirely) and the trustees filed a final Form 706-QDT certifying the naturalization. The estate asked the IRS to waive the actual-conveyance requirement under Treas. Reg. § 20.2056A-4(b)(6) and § 301.9100-1(a). Because the estate acted reasonably and in good faith and the government was not prejudiced, the IRS granted the waiver, preserving the marital deduction.

Ruling snapshot

• Question: May the estate obtain a waiver of the requirement to actually convey irrevocably assigned assets to a QDOT, given the surviving spouse later became a U.S. citizen?
• Outcome: Approved (waiver of actual conveyance granted)
• Key authorities: IRC §§ 2056(d), 2056A; Treas. Reg. § 20.2056A-4(b)(6); Treas. Reg. §§ 301.9100-1 through 301.9100-3

Full text (IRS public release)

 Internal Revenue Service                                       Department of the Treasury
                                                                Washington, DC 20224

 Number: 202623004                                              Third Party Communication: None
 Release Date: 6/5/2026                                         Date of Communication: Not Applicable
 Index Number: 2056A.00-00, 9100.00-00
                                                                Person To Contact:
                                                                ---------------------, ID No. -----------------
 -----------------------------------                            Telephone Number:
 ---------------------------                                    --------------------
 ---------------------------------------                        Refer Reply To:
 ----------------------------                                   CC:PT&E:B4
 ------------------------------                                 PLR-116003-25
                                                                Date:
 Re: ------------------------------                             March 04, 2026




Legend

Decedent          =        --------------------------------------------
Spouse            =        ----------------------------------------------------
Real Estate =              ------------------------------------------
Trust             =        ------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
                           -----------------------
Trustees          =        -----------------------
                  -----------------------
                           ---------------------
Date 1            =        -----------------------
Date 2            =        -------------------
Date 3            =        -------------------
Date 4            =        -------------------
Date 5            =        ------------------
Date 6            =        ----------------------


Dear ---------------:

This letter responds to a letter dated August 25, 2025, and supplemental information,
submitted on behalf of Decedent's estate requesting a ruling under § 20.2056A-4(b)(6)
of the Estate Tax Regulations and § 301.9100-1 of the Procedure and Administration
Regulations for a waiver of the requirement of an actual conveyance of property
irrevocably assigned to a qualified domestic trust (QDOT) as described in § 2056A of
the Internal Revenue Code (Code).

Facts

Taxpayer represents the facts to be as follows:

On Date 1, Decedent died, survived by Spouse. Spouse was not a citizen of the United
States at the time of Decedent's death.

On Date 2, Spouse established Trust. On Dates 2 and 3, Spouse irrevocably assigned
to Trust assets that passed to Spouse as a result of Decedent's death. Trust is a QDOT
as described in § 2056A(a) of the Code. Dates 2 and 3 are dates before the due date of
Decedent's estate tax return (with extension).

On Date 4, Decedent's estate timely filed its Form 706, United States Estate (and
Generation-Skipping Transfer) Tax Return. On Schedule M, Decedent's estate
claimed a marital deduction for the value of the assets Spouse assigned to Trust on
Dates 2 and 3 and made a QDOT election with respect to Trust. Although Spouse
irrevocably assigned the assets for which the Decedent's estate claimed the marital
deduction, Spouse has not conveyed the assets to Trust and the assets remain in
Spouse's possession pending conveyance. The administration of Decedent's estate
has not been completed.

On Date 5, Spouse became a United States citizen. Spouse currently resides in the
United States and has resided continually in the United States since Decedent's
death. On Date 6, Trustees filed a final Form 706-QDT to notify the Internal
Revenue Service (IRS) and certify that Spouse had become a United States citizen
on Date 5.

In accordance with § 20.2056A-4(b)(6), Decedent's estate requests relief under
§ 301.9100-1(a) for a waiver of the requirement of an actual conveyance of property
irrevocably assigned to a QDOT described in § 2056A for purposes of qualifying for a
marital deduction under § 2056 of the Code.

Law and Analysis

Section 2001(a) imposes a tax on the transfer of the taxable estate of every decedent
who is a citizen or resident of the United States.

Section 2056(a) provides that, for purposes of the tax imposed by § 2001, the value of
the taxable estate is to be determined by deducting from the value of the gross estate an
amount equal to the value of any interest in property that passes or has passed from
the decedent to the surviving spouse.

Section 2056(d)(1)(A) and (d)(2)(A) provides that if the surviving spouse of the decedent
is not a United States citizen, no marital deduction is allowed under § 2056(a), unless
the property passes to the surviving spouse in a QDOT.

Under § 2056A(a), a QDOT is any trust in which (1) the trust instrument requires that at
least one trustee of the trust is an individual citizen of the United States or a domestic
corporation, and provides that no distribution (other than income) may be made from the
trust unless a United States trustee or domestic corporation has the right to withhold
from such distribution the tax imposed on such distribution; (2) the trust meets the
requirements as the Secretary may by regulations prescribe to ensure collection of the
tax imposed by § 2056A(b); and (3) an election is made by the executor of the decedent
with respect to the trust.

Section 2056(d)(2)(B) provides that property passing from the decedent to the surviving
spouse will be treated as passing to the surviving spouse in a QDOT, if the property is
irrevocably transferred or assigned to the QDOT by the spouse before the date on
which the estate tax return is filed.

Section 2056A(b)(1)(A) imposes an estate tax on any distribution made from a QDOT
before the date of death of the surviving spouse. Section 2056A(b)(1)(B) imposes an
estate tax on the value of the property remaining in a QDOT on the date of the death of
the surviving spouse.

Under § 2056A(b)(12)(A) and § 20.2056A-10(a)(1) and (2), a QDOT is no longer subject
to the estate tax imposed under § 2056A(b) if the surviving spouse of the decedent
becomes a citizen of the United States, the spouse was a resident of the United States
at all times after the date of the death of the decedent and before becoming a United
States citizen, and the United States trustee of the QDOT notifies the IRS and certifies
in writing that the surviving spouse has become a United States citizen. Notice is to be
made by filing a final Form 706-QDT on or before April 15th of the calendar year
following the year that the surviving spouse becomes a citizen, unless an extension of
time for filing is granted.

Section 20.2056A-4(b)(6) provides that, for purposes of § 2056(d)(2), property
irrevocably assigned but not actually transferred to the QDOT before the estate tax
return is filed must be conveyed and transferred to the QDOT under applicable local law
before the administration of the decedent's estate is completed. If there is no
administration of the decedent's estate (because for example, none of the decedent's
assets are subject to probate under local law), the conveyance must be made on or
before the date that is one year after the due date (including extensions) for filing the
decedent's estate tax return. If an actual transfer to the QDOT is not timely made, the
marital deduction is not allowed. Section 20.2056A-4(b)(6) further provides that an
extension of time for completing the conveyance, or a waiver of the actual conveyance,
may be requested by the decedent's estate under § 301.9100-1(a).
Section 301.9100-1(a) provides that the regulations under § 301.9100-1 through
§ 301.9100-3 provide the standards the Commissioner will use to determine whether to
grant an extension of time to make a regulatory election. However, the granting of an
extension of time is not a determination that the taxpayer is otherwise eligible to make
the election. Section 301.9100-2 provides automatic extensions of time for making
regulatory and statutory elections when the deadline for making the election is the due
date of the return or the due date of the return including extensions. Section
301.9100-3 provides extensions of time for making regulatory elections that do not meet
the requirements of § 301.9100-2.

Under § 301.9100-1(c), the Commissioner may grant an extension of time under the
rules set forth in § 301.9100-2 and § 301.9100-3 to make a regulatory election or a
statutory election (but no more than six months except in the case of a taxpayer who is
abroad), under all subtitles of the Code except subtitles E, G, H, and I.

Section 301.9100-3(a) provides, in relevant part, that requests for extensions of time for
regulatory elections that do not meet the requirements of § 301.9100-2 must be made
under the rules of § 301.9100-3. Requests for relief subject to § 301.9100-3 will be
granted when the taxpayer provides the evidence to establish to the satisfaction of the
Commissioner that the taxpayer acted reasonably and in good faith, and the grant of
relief will not prejudice the interests of the Government.

Section 301.9100-3(b)(I)(i) provides that a taxpayer is deemed to have acted
reasonably and in good faith if the taxpayer requests relief under § 301.9100-3 before
the failure to make the regulatory election is discovered by the IRS.

Section 301.9100-3(c)(1) provides, in relevant part, that the Commissioner will grant a
reasonable extension of time to make a regulatory election only when the interests of
the Government will not be prejudiced by the granting of relief.

Based upon the facts submitted and the representations made, we conclude that the
requirements of § 301.9100-1 and § 301.9100-3 have been met. Consequently, in
accordance with § 20.2056A-4(b)(6), a waiver of the requirement of actual conveyance
is granted.

The ruling contained in this letter is based upon information and representations
submitted by the taxpayer and accompanied by a penalty of perjury statement executed
by an appropriate party. While this office has not verified any of the material submitted
in support of the request for rulings, it is subject to verification on examination.

Except as we have specifically ruled herein, we express no opinion as to the
consequences of this transaction under the cited provisions or under any other
provisions of the Code.

This ruling is directed only to the taxpayer requesting it. Section 6110(k)(3) of the Code
provides that it may not be used or cited as precedent.

In accordance with the Power of Attorney on file with this office, a copy of this letter is
being sent to your authorized representatives.

                                                   Sincerely,

                                                   Associate Chief Counsel
                                                   Passthroughs, Trusts & Estates



                                          By: __________________________
                                              Leslie H. Finlow
                                              Senior Technician Reviewer, Branch 4
                                              Office of the Associate Chief Counsel
                                              (Passthroughs, Trusts, and Estates)



Enclosure (1):

        Copy for § 6110 purposes

 cc: -----------------------------
     ----------------------
     ---------------------------------------
     ----------------------------
     ---------------------------

      ---------------------------
      ----------------------
      ------------------------------------------
      ------------------------
      -----------------------------