Instructions For Form 706-Gs(T) - 2006 (Page 6 of 6) in pdf

the QTIP election had not been made.

The numerator of the new fraction is

In the case of a late allocation, the

If the special QTIP election has been

the sum of:

amount of interest accrued prior to the

made, the predeceased settlor spouse

date of allocation is zero.

1. The exemption allocated to the

is the transferor and the value is that

current transfer, and

Line 8

spouse’s estate or gift tax value under

2. The nontax portion of the trust

the rules described above. The settlor

Enter, using the table below, the

immediately before the current transfer

spouse or the executor of the

(the product of the applicable fraction

maximum federal estate tax rate in

predeceased settlor spouse’s estate

and the value of all the property in the

effect at the time the

must have made the special QTIP

trust immediately before the current

generation-skipping transfer occurred.

election.

transfer).

Table of Maximum Tax Rates

Transfers subject to an “estate tax

inclusion period.” If a transferor

The denominator of the new fraction

made an inter vivos transfer, and the

is the sum of:

The

property transferred would have been

If the generation-skipping maximum

1. The value of the current transfer

includible in the transferor’s estate if he

transfer occurred . . . . . . tax rate is

(minus any federal estate tax or state

or she had died immediately after the

death tax actually paid by the trust

transfer (other than by reason of the

After December 31, 2002

49%

attributable to such property and any

transferor dying within 3 years of

but before January 1, 2004

charitable deduction allowed for such

making the gift), for purposes of

property), and

determining the inclusion ratio, an

After December 31, 2003

48%

2. The value (determined under the

allocation of GST exemption will only

but before January 1, 2005

rules described above) of all property in

become effective at the close of the

the trust immediately before the current

estate tax inclusion period (ETIP).

transfer.

After December 31, 2004

47%

The value of the property for the

but before January 1, 2006

purpose of figuring the inclusion ratio is

To figure the inclusion ratio, use only

the estate tax value if the property is

After December 31, 2005

46%

the value of the total additions made to

includible in the transferor’s gross

but before January 1, 2007

the trust after September 25, 1985.

estate. Otherwise, the property is

valued at the close of the ETIP,

Charitable lead annuity trusts. For

After December 31, 2006

45%

provided that the GST exemption is

termination of an interest in a charitable

but before January 1, 2010

allocated on a timely filed gift tax return

lead annuity trust, the numerator of the

for the calendar year in which the ETIP

applicable fraction is the adjusted GST

closes.

exemption as defined below. The

Part III

The ETIP closes at the earliest of:

denominator is the value of the trust

•

The time the transferred property

immediately after the termination of the

Line 9b

would no longer be includible in the

charitable lead annuity interest.

settlor’s estate,

If you have more than six Schedules A

•

The date of a generation-skipping

The adjusted GST exemption is the

attached to this form, enter on the line

transfer of the property, or

sum of:

indicated the total GST tax from all

•

The date of death of the settlor.

Schedules A in excess of six.

1. The exemption allocated to the

If the allocation is not made on a

trust, and

Line 12

timely filed gift tax return, the property

2. Interest on the exemption

is valued at the time of the late

determined at the interest rate used to

Make your check payable to the “United

allocation.

figure the estate or gift deduction for

States Treasury.” Please write the

Multiple transfers. When a transfer is

the charitable lead annuity and for the

trust’s EIN, the year, and “Form

made to a pre-existing trust, the

actual period of the charitable lead

706-GS(T)” on the check to assist us in

applicable fraction must be refigured.

annuity.

posting it to the proper account.

Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the

United States. You are required to give us the information. We need it to ensure that you are complying with these laws and

to allow us to figure and collect the right amount of tax.

You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless

the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long

as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return

information are confidential, as required by section 6103.

The time needed to complete and file this form will vary depending on individual circumstances. The average estimated

time is:

Form

Recordkeeping

Learning about the

Preparing the form

Copying, assembling,

law or the form

and sending the form to

the IRS

706-GS(T)

39 min.

32 min.

20 min.

Schedule A

13 min.

37 min.

20 min.

Schedule B

13 min.

9 min.

19 min.

20 min.

If you have comments concerning the accuracy of these estimates or suggestions for making this form simpler, we would

be happy to hear from you. You can write to the Internal Revenue Service, Tax Products Coordinating Committee,

SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave. NW, IR-6406, Washington, DC 20224. Do not send the form to this address.

Instead, see Where To File on page 1.

-6-

Instructions For Form 706-Gs(T) - 2006 Page 6

Related Articles

Related forms

Related Categories