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c. Similar rules apply for a new

transferor has any living lineal

an EIN that is separate from any other

generation every 25 years.

descendants.

entity’s EIN and that will be used only

by the nonexplicit trust.

If any transfer of property to a trust

If more than one of the rules for

would have been a direct skip except

A trust or nonexplicit trust that does

assigning generations applies to a

for this generation assignment rule,

not have an EIN should apply for one

beneficiary, the beneficiary is generally

then the rule also applies to transfers

on Form SS-4, Application for Employer

assigned to the youngest of the

Identification Number. You can get

from the trust attributable to such

generations that apply.

Form SS-4, and other IRS tax forms

property.

and publications, by calling

If an entity such as a partnership,

Ninety-day rule. For purposes of

1-800-TAX-FORM (1-800-829-3676) or

corporation, trust, or estate has an

determining if an individual’s parent is

by accessing the IRS website at

interest in the property, each individual

deceased at the time of a testamentary

who has a beneficial interest in the

transfer, an individual’s parent who dies

entity is treated as having an interest in

no later than ninety days after a

Send Form SS-4 to the Internal

the property. The individual is then

transfer occurring by reason of the

Revenue Service Center listed under

assigned to a generation using the

death of the transferor is treated as

Where To File on page 1. If the EIN has

rules described above.

having predeceased the transferor. The

not been received by the filing time for

ninety-day rule applies to transfers

the GST form, write “Applied for” on

Governmental entities and certain

occurring on or after July 18, 2005. See

line 2a.

charitable organizations are assigned to

Regulations section 26.2651-1 for more

the transferor’s generation.

Part II—Distributions

information.

Distributions to them will never be

Multiple skips. If after a

generation-skipping transfers.

Report all taxable distributions made

generation-skipping transfer the

during the year from the trust listed on

Generation assignment where

property transferred is held in trust,

line 2 to the skip person distributee

intervening parent is deceased. If

then for the purpose of determining the

listed on line 1. Report a distribution

you made a gift or bequest to your

taxability of subsequent distributions

even if its inclusion ratio is zero.

grandchild and at the time you made

from the trust involving that property,

the gift or bequest, the grandchild’s

Column a. Item no.

the settlor of the property is assigned to

parent (who is your or your spouse’s or

the first generation above the highest

Assign consecutive numbers to each

your former spouse’s child) is

generation of any person who has an

distribution made during the year.

deceased, then for purposes of

interest in the trust immediately after

Different items of property having

generation assignment, your grandchild

the initial transfer.

different inclusion ratios must be listed

will be considered to be your child

separately in Part II. Include under a

rather than your grandchild. Your

Signature

single item number any properties

grandchild’s children will be treated as

having the same inclusion ratio even if

your grandchildren rather than your

The trustee, or an authorized

they were distributed at different times.

great-grandchildren.

representative of the trustee, must sign

An exception to this is distributions from

Form 706-GS(D-1).

This rule is also applied to your lineal

“separate trusts” as that term is defined

If someone prepares your return and

descendants below the level of

on page 1. You must report

does not charge you, that person

grandchild. For example, if your

distributions from such separate trusts

should not sign the return. Generally,

grandchild is deceased, your

under different item numbers even if

anyone who is paid to prepare your

great-grandchildren who are lineal

they have the same inclusion ratio.

return must sign it in the space

descendants of the deceased

indicated.

Column b. Description of

grandchild are considered your

grandchildren for purposes of the GST

Property

tax.

Real estate. Describe the real estate in

Specific Instructions

This rule also applies to other lineal

enough detail so that the IRS can easily

descendants. For example, if property

locate it for inspection and valuation.

is transferred to an individual who is a

Part I—General

For each parcel of real estate, report

descendant of a parent of the

the location and, if the parcel is

Information

transferor, and that individual’s parent

improved, describe the improvements.

(who is a lineal descendant of the

For city or town property, report the

parent of the transferor) is deceased at

Line 1a. Skip Person

street number, ward, subdivision, block

the time the transfer is subject to gift or

and lot, etc. For rural property, report

Distributee’s Identifying

estate tax, then for purposes of

the township, range, landmarks, etc.

Number

generation assignment, the individual is

Stocks and bonds. For stocks, give:

treated as if he or she is a member of

Enter the social security number of an

•

Number of shares;

the generation that is one generation

individual distributee. (If the number is

•

Whether common or preferred;

below the lower of:

unknown or the individual has no

•

Issue;

The transferor’s generation or

number, indicate “unknown” or “none.”)

•

Par value where needed for

The generation assignment of the

If the distributee is a trust, enter the

valuation;

youngest living ancestor of the

trust’s employer identification number

•

Price per share;

individual, who is also a descendant of

(EIN).

•

Exact name of corporation;

the parent of the transferor.

•

Principal exchange upon which sold,

Line 2a. Trust’s Employer

The same rules apply to the

if listed on an exchange; and

Identification Number

•

generation assignment of any

CUSIP number.

descendant of the individual.

Enter the EIN of the trust from which

For bonds, give:

•

the distribution was made.

This rule does not apply to a transfer

Quantity and denomination;

•

to an individual who is not a lineal

A nonexplicit trust as described on

Name of obligor;

•

descendant of the transferor if the

page 1 under Who Must File must have

Date of maturity;

-3-

Form 706-Gs(D-1) - 2007 - Instructions For Skip Person Distributee - Department Of The Treasury - Internal Revenue Service Page 4

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