Extension to make a late QTIP election for a marital trust

Plain-English summary

Property a decedent leaves to a surviving spouse can qualify for the estate-tax
marital deduction, which defers estate tax until the second spouse dies. For a
"qualified terminable interest property" (QTIP) trust, the executor has to
affirmatively elect that treatment on the estate tax return (Form 706). Here the
decedent's will set up a marital trust paying the surviving spouse income for life
and directed the executor to make the QTIP election, but the estate's accountant
and attorney mistakenly listed the trust property on Schedule M of the timely-filed
Form 706 as "all other property" instead of QTIP property, so no election was made.
After discovering the mistake, the estate filed a supplemental Form 706 making the
election and asked the IRS for relief under Treas. Reg. §§ 301.9100-1 and
301.9100-3. Because the executor reasonably relied on qualified tax professionals
who failed to make the election, the IRS found the estate acted reasonably and in
good faith, and it granted an extension back to the date the supplemental return was
filed. The result is that the marital-trust property qualifies for the marital
deduction.

Ruling snapshot

• Question: Should an estate get an extension to make a QTIP election its preparers omitted from a timely-filed Form 706?
• Outcome: Approved (extension granted to the date the supplemental Form 706 was filed)
• Key authorities: IRC § 2056(b)(7); Treas. Reg. § 20.2056(b)-7(b)(4)(i); Treas. Reg. §§ 301.9100-1, 301.9100-3, 301.9100-3(b)(1)(v); IRC § 2001

Full text (IRS public release)

 Internal Revenue Service                                      Department of the Treasury
                                                               Washington, DC 20224

 Number: 202629011                                             Third Party Communication: None
 Release Date: 7/17/2026                                       Date of Communication: Not Applicable
 Index Number: 2056.00-00, 2056.07-00,
               9100.00-00                                      Person To Contact:
                                                               -----------------, ID No. -----------------
 ----------------------------------------                      Telephone Number:
 --------------------------------------------                  --------------------
 -------------------------                                     Refer Reply To:
 -------------------------                                     CC:PT&E:B04
 ----------------------------                                  PLR-118815-25
                                                               Date:
                                                               April 16, 2026
          RE: ----------------------------------------------
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LEGEND

Decedent                  =        ------------------------------------------------------
Spouse                    =        ----------------------------------------------------
Marital Trust             =        -------------------------------------------------------
Date 1                    =        ------------------
Date 2                    =        ----------------------
Date 3                    =        ---------------------------
Attorney                  =        ----------------------------
Accounting Firm           =        -------------------------

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

This letter responds to your authorized representative’s letter dated October 15, 2025,
and subsequent correspondence, submitted on behalf of Decedent’s estate, requesting
an extension of time under § 301.9100-1 and § 301.9100-3 of the Procedure and
Administration Regulations to make a qualified terminable interest property (QTIP)
election under § 2056(b)(7) of the Internal Revenue Code (Code).

The facts and representations submitted are as follows. Decedent died on Date 1,
survived by Spouse. Article V of Decedent’s will bequeathed the residue of Decedent’s
estate to Marital Trust.

Article VII provides the terms of Marital Trust. Pursuant to Article VII, trustee shall
distribute the net income to Spouse in installments no less often than annually, and
trustee shall distribute amounts of principal as necessary to provide for Spouse’s health,
support, maintenance, or education. In addition, Spouse has the right to direct trustee
to convert any unproductive property to productive property. During Spouse’s lifetime,
no income or principal shall be distributed to any person other than Spouse. Upon the
PLR-118815-25                                2

death of Spouse, the remaining trust property shall be distributed to trusts established
for Decedent’s children pursuant to Article IX of Decedent’s will.

Article XI provides that the executor shall make an election to treat property passing to
Marital Trust as “qualified terminal interest property” as such term is defined in
§ 2056(b)(7).

Spouse, in her capacity as executor of Decedent’s estate, engaged Accounting Firm
and Attorney to prepare Decedent’s Form 706, United States Estate (and Generation-
Skipping Transfer) Tax Return, and to make any necessary elections, including a QTIP
election. The Form 706 for Decedent’s estate was timely filed on Date 2. On
Schedule M of Form 706, the value of the property passing to Marital Trust was not
listed as “QTIP property” but was mistakenly identified as “[a]ll other property.” Thus, no
QTIP election was made with respect to such property.

After the Form 706 was filed on Date 2, it was discovered that the property passing to
Marital Trust was incorrectly reported on Schedule M of Form 706 and that a QTIP
election should have been made for such property, in accordance with the provisions of
Decedent’s will. Decedent’s estate filed a supplemental Form 706 on Date 3 to make
the QTIP election for the property passing to Marital Trust.

You have requested an extension of time under § 301.9100-1 and § 301.9100-3 to
make the QTIP election under § 2056(b)(7) to treat the Marital Trust property as QTIP
property.

LAW AND ANALYSIS

Section 2001(a) of the Code 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 shall, except as limited by § 2056(b), be determined by deducting
from the value of the gross estate an amount equal to the value of any interest in
property which passes or has passed from the decedent to the surviving spouse, but
only to the extent that such interest is included in determining the value of the gross
estate.

Section 2056(b)(1) provides the general rule that no deduction shall be allowed under
§ 2056(a) for an interest passing to the surviving spouse if, on the lapse of time, on the
occurrence of an event or contingency, or on the failure of an event or contingency to
occur, the interest will terminate or fail.

Section 2056(b)(7)(A) provides that, in the case of QTIP, such property shall be treated
as passing to the surviving spouse, and for purposes of § 2056(b)(1)(A), no part of such
property shall be treated as passing to any person other than the surviving spouse.
PLR-118815-25                                   3

Section 2056(b)(7)(B)(i) defines the term “QTIP” as property: (I) which passes from the
decedent; (II) in which the surviving spouse has a qualifying income interest for life as
defined in § 2056(b)(7)(B)(ii); and (III) to which an election under § 2056(b)(7) applies.

Section 2056(b)(7)(B)(ii) provides that the surviving spouse has a qualifying income
interest for life if: (I) the surviving spouse is entitled to all the income from the property
payable annually or at more frequent intervals, or has a usufruct interest for life in the
property, and (II) no person has a power to appoint any part of the property to any
person other than the surviving spouse.

Section 2056(b)(7)(B)(v) provides that an election under § 2056(b)(7) with respect to
any property shall be made by the executor on the return of tax imposed by § 2001.
Such an election, once made, shall be irrevocable.

Section 20.2056(b)-7(b)(4)(i) of the Estate Tax Regulations generally provides that the
QTIP election is made on the last estate tax return filed by the executor on or before the
due date of the return, including extensions, or, if a timely return is not filed, the first
estate tax return filed by the executor after the due date.

Section 301.9100-1(c) provides that the Commissioner has discretion to grant a
reasonable 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 Internal
Revenue Code except subtitles E, G, H, and I.

Section 301.9100-3 provides the standards used to determine whether to grant an
extension of time to make an election whose date is prescribed by a regulation (and not
expressly provided by statute).

Requests for relief under § 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 that granting relief will not prejudice the interests of
the government.

Section 301.9100-3(b)(1)(v) provides that a taxpayer is deemed to have acted
reasonably and in good faith if the taxpayer reasonably relied on a qualified tax
professional, including a tax professional employed by the taxpayer, and the tax
professional failed to make, or advise the taxpayer to make, the election.

Based on the facts submitted and the representations made, we conclude that the
requirements of § 301.9100-3 have been satisfied. Accordingly, Decedent’s estate is
granted an extension of time to Date 3, the date the supplemental Form 706 was filed,
to make a QTIP election with respect to the Marital Trust property. A copy of this letter
along with a copy of the filed supplemental Form 706 should be forwarded to:
PLR-118815-25                                   4

Department of the Treasury, Internal Revenue Service Center, Attn: E&G, Stop 824G,
7940 Kentucky Drive, Florence, KY 41042-2915.

Except as expressly provided herein, no opinion is expressed or implied concerning the
tax consequences of any aspect of any transaction or item discussed or referenced in
this letter.

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 representative.

The rulings contained in this letter are 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.




                                          Sincerely,

                                          Associate Chief Counsel
                                          (Passthroughs, Trusts, and Estates)




                                    By:              /S/
                                          Melissa C. Liquerman
                                          Senior Counsel, Branch 4
                                          Office of the Associate Chief Counsel
                                          (Passthroughs, Trusts, and Estates)



Enclosure:
      Copy for § 6110 purposes
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