Part VI—Section 2801 Ratio for Distributions Received From Foreign Trust

You must complete Sections 1 and 2 if checked “Yes” on Part I, line 8; because you received a distribution during the applicable calendar year from a non-electing foreign trust attributable to covered gifts or covered bequests received by that trust. If you received distributions from more than one non-electing foreign trust, duplicate and use Part VI for each foreign non-electing trust that distributed property reportable on Part IV, Section 3 to you during the applicable calendar year. See Attachments and Supplemental Documents, earlier.

Section 1—Foreign Trust Information Complete this section to provide the name of the distributing non-electing foreign trust, the name and title of its trustee, and its mailing address.

Section 2—Section 2801 Ratio Complete this section to determine a non-electing foreign trust’s section 2801 ratio. A non-electing foreign trust’s section 2801 ratio will be zero until it receives a covered gift or covered bequest, at which time the non-electing foreign trust’s section 2801 ratio must be determined. After determination of the non-electing foreign trust’s initial section 2801 ratio, the trust’s section 2801 ratio must be redetermined upon each subsequent contribution to the trust. List all contributions received by the distributing foreign trust in chronological order. Complete and attach a copy of Part VI for any distributions received by the distributing foreign trust from another non-electing foreign trust and attach a copy of that trust’s governing instrument to this return.

List all covered gifts or bequests, including distributions from other non-electing foreign trusts attributable to covered gifts or bequests, received by the distributing foreign trust in chronological order. Complete and attach a copy of Part VI for any distributions received by the distributing foreign trust from another non-electing foreign trust, and attach a copy of that trust’s governing instrument to this return.

Column (a). Enter the date that the foreign trust received a contribution. The first contribution listed should be the initial covered gift or covered bequest received by the foreign trust. Additional contributions received by the foreign trust, whether or not covered gifts or covered bequests, should be listed in chronological order to redetermine the trust’s section 2801 ratio as of each such date.

Column (b). Enter the fair market value of the contribution on the date received by the foreign trust. See Value of covered gift or covered bequest, earlier.

Column (c). Enter the fair market value of all property held by the foreign trust immediately prior to receipt of the contribution. See Value of covered gift or covered bequest, earlier.

Column (d). Add column (b) and column (c) to get the post-contribution value of the foreign trust, and enter in column (d). The post-contribution value of the foreign trust is the fair market value of the foreign trust’s assets immediately

after its receipt of the contribution received on the date reported in column (a).

Column (e). Multiply column (c) by column (h) of the preceding line to get the pre-contribution value of the covered gift or covered bequest portion of the trust. The pre-contribution value of the covered gift or covered bequest portion of the foreign trust is the value of the trust attributable to covered gifts and covered bequests, if any, immediately before it received the contribution reported on this line. This value is determined by multiplying the fair market value of the foreign trust’s assets by the section 2801 ratio in effect immediately prior to the trust’s receipt of the contribution.

Column (f). Check “Yes” when completing for the initial covered gift or covered bequest to the foreign trust. For each subsequent contribution to the foreign trust received after the initial covered gift or covered bequest, check the appropriate box to indicate whether the contribution is a covered gift or covered bequest.

Column (g). The entry in column (g) is the post-contribution value of the covered gift or covered bequest portion of the trust.

For subsequent contributions, if the “Yes” box is checked in column (f), add the amount in column (b) and the amount in column (e), and enter the amount in column (g). Column (g) is the value of the covered gift or covered bequest portion of the trust arrived at by adding together the pre-contribution value of the covered gift or covered bequest portion of the foreign trust and the value of the current covered gift or covered bequest received by such trust.

For subsequent contributions, if the “No” box is checked in column (f), enter the amount from column (e) in column (g). Column (g) will show the pre-contribution value of the covered gift or covered bequest portion of the foreign trust as the value of the covered gift or covered bequest portion of the trust.

Column (h). Compute the foreign trust's section 2801 ratio by dividing column (g) by column (d). Report this amount in column (h) and carry the computation to two decimal places (for example, .58).

Column (i). If the box in column (f) is checked “Yes,” enter the name of the covered expatriate donor or decedent, as applicable. For distributions received from another non-electing foreign trust attributable to covered gifts or covered bequests, enter the name of that trust. If the box in column (f) is checked “No,” leave this entry blank.

Column (j). If the box in column (f) is checked “Yes,” describe the covered gift or covered bequest in enough detail so that the property can be easily identified. For additional information and supplemental documents, see Value of covered gift or covered bequest, earlier. If the box in column (f) is checked “No,” leave this entry blank.