IRS grants 120 days to make a reverse QTIP election

Plain-English summary

An estate timely filed Form 706 and elected QTIP treatment for property passing to a surviving spouse, but the estate's attorney failed to make the related reverse QTIP election for an exempt marital trust. A reverse QTIP election can determine who is treated as the transferor for generation-skipping transfer tax purposes. The spouse's new counsel discovered the omission while reviewing the estate plan. The IRS granted the spouse, as executor, 120 days from the letter date to make the reverse QTIP election on an amended Form 706. The relief was based on the estate's reasonable reliance on a qualified tax professional and did not express an opinion on other tax consequences.

Ruling snapshot

• Question: May the executor make a late reverse QTIP election for the exempt marital trust?
• Outcome: Approved, with 120 days from the letter date to file an amended Form 706.
• Key authorities: IRC §§ 2001, 2044, 2056, 2601, 2602, 2611, 2631, 2632, 2641, 2642, 2652, and 6110(k)(3); Treas. Reg. §§ 26.2652-2, 26.2654-1, and 301.9100-1 through 301.9100-3.

Full text (IRS public release)

Internal Revenue Service
Department of the Treasury
Washington, DC 20224

Number: 202636001
Third Party Communication: None
Release Date: 9/4/2026
Date of Communication: Not Applicable
Index Number: 9100.00-00, 2056.00-00,
2056.07-00, 2652.01-02
Person To Contact:
-------------------, ID No. ------------------
-----------------------------------
Telephone Number:
----------------------------------
-------------------
--------------------------
Refer Reply To:
------------------------------
CC:PT&E:04
-----------------------------
PLR-102428-26
Date:
June 01, 2026

Re: -----------------------------------

LEGEND

Decedent = -------------------------------------------------
Spouse = -----------------------------------------------
Trust = --------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------
------------------------------------------------
Date 1 = -------------------
Date 2 = ------------------
Date 3 = --------------------------
Attorney = -------------------

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

This letter responds to your authorized representative’s letter dated December 17, 2025, and subsequent correspondence, requesting an extension of time under
§ 301.9100-1 and § 301.9100-3 of the Procedure and Administration Regulations to make a reverse qualified terminable interest property (QTIP) election under
§ 2652(a)(3) of the Internal Revenue Code (Code).

The facts and representations submitted are as follows.

On Date 1, Decedent and Spouse established a revocable trust, Trust. Decedent and Spouse last restated Trust on Date 2. Decedent died on Date 3, survived by Spouse. Trust became irrevocable upon Decedent’s death. Under Article 2.3 of Trust, upon the death of the first of Decedent and Spouse, trustee is to divide Trust into a Survivor Trust, an Exemption Trust, and a Marital Trust.
PLR-102428-26
2

Under Article 2.17 of Trust, during the lifetime of the surviving spouse, trustee shall pay to or apply for the benefit of the surviving spouse, the entire net income of the Marital Trust in quarter-annual or more frequent installments and no person shall have the power to appoint any part of the trust property to any person other than the surviving spouse. If the Decedent has unused generation-skipping transfer tax exemption, Article 2.16 of Trust instructs the trustees to divide the Marital Trust into a non-exempt Marital Trust and an exempt Marital Trust in order to permit the reverse QTIP election to be made with respect to the exempt Marital Trust.

Spouse, as executor of Decedent’s estate, engaged Attorney to prepare and timely file Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, and to make any necessary elections, including a reverse QTIP election, for Decedent’s estate. A Form 706 was timely filed on behalf of the estate, electing to treat the property of Marital Trust as a QTIP under § 2056(b)(7). However, in preparing Form 706 for Decedent’s estate, Attorney did not make a reverse QTIP election for the property of the exempt Marital Trust nor did Attorney advise Spouse of the availability of the reverse QTIP election. Spouse’s new counsel discovered the failure to make the reverse QTIP election while reviewing Spouse’s estate plan.

You have requested an extension of time under §§ 301.9100-1 and 301.9100-3 to make a reverse QTIP election under § 2652(a)(3) with respect to the property of the exempt Marital Trust.

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 2044 provides, in part, that the value of the gross estate shall include the value of any property for which a deduction was allowed with respect to the transfer of such property to the decedent under § 2056(b)(7) in which the decedent had a qualifying income interest for life.

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)(7)(A) provides that, in the case of qualified terminable interest property, for purposes of § 2056(a), 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-102428-26
3

Section 2056(b)(7)(B)(i) defines the term “qualified terminable interest property” 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 2601 imposes a tax on every generation-skipping transfer. Section 2611(a) provides that the term “generation-skipping transfer” means: (1) a taxable distribution; (2) a taxable termination; and (3) a direct skip.

Section 2602 provides that the amount of the GST tax is determined by multiplying the taxable amount by the applicable rate. Section 2641(a) provides that the term “applicable rate” means, with respect to any GST transfer, the product of the maximum federal estate tax rate and the inclusion ratio with respect to the transfer.

Section 2631(a) provides that, for purposes of determining the inclusion ratio, every individual shall be allowed a GST exemption amount which may be allocated by such individual (or his executor) to any property with respect to which the individual is the transferor. Section 2631(b) provides that any allocation under § 2631(a), once made, shall be irrevocable.

Section 2632(a) provides that any allocation by an individual of his or her GST exemption under § 2631(a) may be made at any time on or before the date prescribed for filing the estate tax return for such individual’s estate (determined with regard to extensions), regardless of whether such a return is required to be filed.

Section 2632(e)(1) provides that, in general, any portion of an individual’s GST exemption which has not been allocated within the time prescribed by § 2632(a) shall be deemed to be allocated as follows: (A) first, to property which is the subject of a direct skip occurring at such individual's death, and (B) second, to trusts with respect to which such individual is the transferor and from which a taxable distribution or a taxable termination might occur at or after such individual's death.

Section 2642(a)(1) provides that, generally, the inclusion ratio with respect to any property transferred in a GST is the excess of one over the applicable fraction determined for the trust. Section 2642(a)(2) provides that, in general, the applicable fraction is a fraction the numerator of which is the amount of the GST exemption allocated to the trust and the denominator of which is the value of the property transferred to the trust, reduced by the sum of any federal estate tax or state death tax actually recovered from the trust attributable to such property, and any charitable deduction allowed under § 2055 or 2522 with respect to such property.

Section 2652(a)(1) provides that for purposes of chapter 13, the term “transferor” means: (A) in the case of any property subject to the tax imposed by chapter 11, the decedent; and (B) in the case of any property subject to the tax imposed by chapter 12,
PLR-102428-26
4

the donor. An individual shall be treated as transferring any property with respect to which such individual is the transferor.

Section 2652(a)(3) provides, in pertinent part, that in the case of any trust with respect to which a deduction is allowed to the decedent under § 2056(b)(7), the estate of the decedent may elect to treat all of the property in such trust for GST tax purposes as if the election to be treated as qualified terminable interest property had not been made (“reverse” QTIP election).

Section 26.2652-2(a) provides, in pertinent part, that if an election is made to treat property as qualified terminable interest property (QTIP) under § 2523(f) or
§ 2056(b)(7), the person making the election may, for purposes of chapter 13, elect to treat the property as if the QTIP election had not been made (“reverse” QTIP election).

A “reverse” QTIP election is not effective unless it is made with respect to all of the property in the trust to which the QTIP election applies. Section 26.2652-2(b) provides that an election under § 2652(a)(3) is made on the return on which the QTIP election is made.

Section 26.2654-1(b)(i) provides, in part, that the severance of a trust that is included in the transferor's gross estate (or created under the transferor's will) into two or more trusts is recognized for GST tax purposes if the trust is severed pursuant to a direction in the governing instrument providing that the trust is to be divided upon the death of the transferor.

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.
PLR-102428-26
5

Based on the facts submitted and the representations made, we conclude that the requirements of § 301.9100-3 have been satisfied. Therefore, Spouse, as the executor of Decedent’s estate, is granted an extension of time of 120 days from the date of this letter to make a reverse QTIP election with respect to the property of the exempt Marital Trust.

The election should be made on an amended Form 706 filed with the Internal Revenue Service Center at the following address: Department of the Treasury, Internal Revenue Service Center, Stop 824G, 7940 Kentucky Drive, Florence, KY 41042-2915. A copy of this letter should be attached to the amended Form 706.

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.

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.

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

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

Sincerely,

Acting Associate Chief Counsel
(Passthroughs, Trusts, and Estates)

By:________
Melissa Liquerman
Senior Counsel, Branch 4
Office of the Associate Chief Counsel
(Passthroughs, Trusts, and Estates)
PLR-102428-26
6

Enclosure:
Copy for § 6110 purposes

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

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

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