Montana Form Qec - Qualified Endowment Credit

Part I. Gift Information

income beneficiaries for the life of beneficiaries, a

term of years, or both, with the remainder interest in

Line 1. In order to claim the qualified endowment credit,

the trust transferring to, or for the use of the charity,

you are required to include a receipt for your contribution

or retained by the trust for the use of the charity. The

with this form. The receipt must be from the tax-exempt

trust agreement must provide that the trust may not

organization holding the qualified endowment receiving

terminate and the beneficiaries’ interest in the trust

the contribution, the trustee of the trust administering the

may not be assigned or contributed to the qualified

planned gift, or the Montana bank or trust company holding

endowment sooner than the earlier of the date of death

the qualified endowment on behalf of the tax-exempt

of the beneficiaries or five years from the date of the

organization. The receipt must contain all of the following

contribution.

information:

Charitable remainder annuity trust. This is a trust

●

The amount of the allowable contribution;

in which property is transferred and invested by the

trustee who each year pays a fixed dollar amount to

●

The date the contribution was made to the qualified

one or more private income beneficiaries for the life

endowment or the planned gift;

of the beneficiaries, a term of years, or both, with the

●

A confirmation from the 501(c)(3) organization,

remainder interest in the trust then transferring to, or

trust, or bank that the contribution was placed in a

for the use of the charity, or retained by the trust for the

permanent irrevocable fund;

use of the charity. The trust agreement must provide

that the trust may not terminate and the beneficiaries’

●

The name of the organization incorporated or

interest in the trust may not be assigned or contributed

established in Montana holding the qualified

to the qualified endowment sooner than the earlier of

endowment fund or the name of the tax-exempt

the date of death of the beneficiaries or five years from

organization on behalf of which the qualified

the date of the contribution.

endowment is held; and

Pooled income fund trust. This is a trust in which

●

A description of the type of gift.

property contributed by donors is pooled together with

In the case of a charitable trust where the charity is yet to

other investors. All the assets transferred to the fund

be named, the donor must include a copy of the disposition

are added together and invested. This pooled fund

clause of the charitable trust which gives evidence that a

creates a diversified portfolio in which all participants

qualified endowment fund has been created.

receive a share of the earnings.

If you file electronically, you do not need to mail this receipt

Charitable lead unitrust. This is a trust in which

to us unless we contact you for a copy.

property is transferred and invested by the trustee who

each year pays a fixed percentage of the unitrust value,

Line 2. Enter the date the qualified contribution was made.

revalued annually, to the charity for a term of years

Line 3. Mark the box next to the statement that applies:

or during the lives of specified linear descendants,

with the remainder interest then transferring to private

●

A tax-exempt Montana organization, qualified

beneficiaries named by the donor.

under 26 U.S.C. 501(c)(3), is holding the qualified

endowment;

Charitable lead annuity trust. This is a trust in which

property is transferred and invested by the trustee who

●

A trustee of the trust is administering the planned

each year pays a fixed dollar amount to the charity

gift; or

for a term of years or lifetime(s), with the remainder

●

A Montana bank or trust company is holding the

interest then transferring to private beneficiaries named

qualified endowment on behalf of a tax-exempt

by the donor.

organization.

Charitable life estate agreement. This is a gift to

Provide the name and address of the entity you selected.

a charity of a personal residence that is subject to a

reserved life estate.

Line 4. If the gift you are claiming the qualified endowment

credit for was a planned gift, mark the appropriate box

Paid-up life insurance policy. This is a life insurance

indicating the type of gift contributed. If the gift was an

policy in which all the premiums have been paid that

outright gift, skip to line 5.

usually entitles the donor to a current deduction equal

to the cost of replacing the policy with a single premium

The types of planned gifts that qualify for this credit are

life insurance policy at the donor’s current age.

irrevocable contributions to a permanent endowment held

by or for a tax exempt organization when the contribution

For the following two annuities to qualify for a charitable

uses any of the following:

deduction or the qualified endowment credit, these

annuities have to be given to a charitable organization that

Charitable remainder unitrust. This is a trust in which

property is transferred and invested by the trustee

who each year pays a fixed percent of the unitrust

value, revalued annually, to one or more private

Montana Form Qec - Qualified Endowment Credit - 2012 Page 3

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