Common use of Filing the QSST election Clause in Contracts

Filing the QSST election. The cur- rent income beneficiary of the trust must make the election by signing and filing with the service center with which the corporation files its income tax return the applicable form or a statement that— (A) Contains the name, address, and taxpayer identification number of the current income beneficiary, the trust, and the corporation; (B) Identifies the election as an elec- tion made under section 1361(d)(2); (C) Specifies the date on which the election is to become effective (not ear- lier than 15 days and two months be- fore the date on which the election is filed); (D) Specifies the date (or dates) on which the stock of the corporation was transferred to the trust; and (E) Provides all information and rep- resentations necessary to show that: (1) Under the terms of the trust and applicable local law— (i) During the life of the current in- come beneficiary, there will be only one income beneficiary of the trust (if husband and wife are beneficiaries, that they will file joint returns and that both are U.S. residents or citi- xxxx); (ii) Any corpus distributed during the life of the current income beneficiary may be distributed only to that xxxx- xxxxxxx; (iii) The current beneficiary’s income interest in the trust will terminate on the earlier of the beneficiary’s death or upon termination of the trust; and (iv) Upon the termination of the trust during the life of such income bene- ficiary, the trust will distribute all its assets to such beneficiary. (2) The trust is required to distribute all of its income currently, or that the trustee will distribute all of its income currently if not so required by the terms of the trust. (3) No distribution of income or cor- pus by the trust will be in satisfaction of the grantor’s legal obligation to sup- port or maintain the income bene- ficiary.

Filing the QSST election. The cur- rent income beneficiary of the trust must make the election by signing and filing with the service center with which the corporation files its income tax return the applicable form or a statement that— (A) Contains the name, address, and taxpayer identification number of the current income beneficiary, the trust, and the corporation; (B) Identifies the election as an elec- tion made under section 1361(d)(2); (C) Specifies the date on which the election is to become effective (not ear- lier than 15 days and two months be- fore the date on which the election is filed); (D) Specifies the date (or dates) on which the stock of the corporation was transferred to the trust; and (E) Provides all information and rep- resentations necessary to show that: (1) Under the terms of the trust and applicable local law— (i) During the life of the current in- come beneficiary, there will be only one income beneficiary of the trust (if husband and wife are beneficiaries, that they will file joint returns and that both are U.S. residents or citi- xxxx); (ii) Any corpus distributed during the life of the current income beneficiary may be distributed only to that xxxx- xxxxxxxbene- ficiary; (iii) The current beneficiary’s income interest in the trust will terminate on the earlier of the beneficiary’s death or upon termination of the trust; and (iv) Upon the termination of the trust during the life of such income bene- ficiary, the trust will distribute all its assets to such beneficiary. (2) The trust is required to distribute all of its income currently, or that the trustee will distribute all of its income currently if not so required by the terms of the trust. (3) No distribution of income or cor- pus by the trust will be in satisfaction of the grantor’s legal obligation to sup- port or maintain the income bene- ficiary.