A qualified subchapter S trust, or QSST, is reviewed when S-corporation stock may be held in trust under a tightly defined beneficiary structure. It is a specialized business-trust topic because S-corporation ownership rules are strict, election timing matters, and the trust language must align with the intended stock eligibility rules.
Last reviewed: March 9, 2026
Reviewed against: trust and estate planning references listed on the sources page.
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The analysis usually starts with whether the trust can satisfy the beneficiary limits tied to QSST status. The trustee, beneficiary rights, income treatment, and election timing all matter. Because this is a business-share issue instead of a general family trust issue, QSST planning is usually evaluated with tax-aware counsel.
A qualified subchapter S trust, or QSST, is a trust reviewed to hold S-corporation stock while meeting specific beneficiary and election rules.
A QSST is specialized because S-corporation ownership has strict eligibility rules, including a required election and limitations on who benefits from trust income.
A QSST generally centers on a single income beneficiary and a specific election, while an ESBT follows a different tax structure and may allow broader beneficiary arrangements.