Instructions For Form 706-Gs(T) - Generation-Skipping Transfer Tax Return For Terminations - Internal Revenue Service - 2011
ADVERTISEMENT
1
2
3
4
5
6Instructions for Form
Department of the Treasury
Internal Revenue Service
706-GS(T)
(Rev. November 2011)
Generation-Skipping Transfer Tax Return for Terminations
request. You must file Form 7004 on or
In general, all taxable terminations
Section references are to the Internal
before the regular due date of Form
are subject to the GST tax. A taxable
Revenue Code unless otherwise noted.
706-GS(T). See Form 7004 for more
termination is the conclusion of an
information.
interest in property held in trust unless:
What’s New
•
Immediately after the termination, a
Where To File
non-skip person has an interest in the
•
File Form 706-GS(T) for 2011
property or
File Form 706-GS(T) at the following
•
terminations by April 17, 2012. The due
At no time after the termination may
address:
date is April 17, instead of April 15,
a distribution be made from the trust to
because April 15 is a Sunday and April
Department of the Treasury
a skip person.
16 is the Emancipation Day holiday in
Internal Revenue Service
Exceptions
the District of Columbia.
Cincinnati, OH 45999
•
The IRS has created a page on
Irrevocable trusts. Except as
Trusts
IRS.gov for information about Form
described under Additions to
706-GS(T) and its instructions, at
www.
Nonexplicit trusts. An arrangement
irrevocable trusts below, the GST tax
irs.gov/form706gst.
Information about
that has substantially the same effect
does not apply to any termination of an
any future developments affecting Form
as a trust will be treated as a trust even
interest in a trust that was irrevocable
706-GS(T) (such as legislation enacted
though it is not an explicit trust.
on September 25, 1985. Any trust in
after we release it) will be posted on
Examples of such arrangements are
existence on September 25, 1985, will
that page.
insurance and annuity contracts,
be considered irrevocable unless:
arrangements involving life estates and
1. On September 25, 1985, the
General Instructions
remainders, and estates for years.
settlor held a power with respect to
In general, a transfer of property in
such trust that would have caused the
which the identity of the transferee is
value of the trust to be included in the
Purpose of Form
conditioned on the occurrence of an
settlor’s gross estate for federal estate
event is a transfer in trust. This rule
tax purposes by reason of section 2038
Form 706-GS(T) is used by a trustee to
does not apply to a testamentary trust,
(regarding revocable transfers) if the
figure and report the tax due from
however, if the event is to occur within
settlor had died on September 25,
certain trust terminations that are
6 months of the transferor’s date of
1985; or
subject to the generation-skipping
death.
2. Regarding a policy of life
transfer (GST) tax.
insurance that is treated as a trust
Nonexplicit trusts do not include
Who Must File
under section 2652(b), the insured
decedents’ estates.
possessed an incident of ownership on
In general, the trustee of any trust that
In the case of a nonexplicit trust, the
September 25, 1985, that would have
has a taxable termination (defined
person in actual or constructive
caused the insurance proceeds to be
below) must file Form 706-GS(T) for the
possession of the property involved is
included in the insured’s gross estate
tax year in which the termination
considered the trustee and is liable for
for federal estate tax purposes if the
occurred.
filing Form 706-GS(T).
insured had died on September 25,
1985.
If you are filing this return for a
When To File
nonexplicit trust, see the instructions for
Generally, the trustee must file Form
For more information, see
line 1b.
706-GS(T) by April 15th of the year
Regulations section 26.2601-1(b)(i) and
Separate trusts. You must treat as
following the calendar year in which the
(ii).
separate trusts:
termination occurs. If the due date falls
•
Portions of a trust that are
Trusts containing qualified
on a Saturday, Sunday, or legal
attributable to transfers from different
terminable interest property.
holiday, file on the next business day.
transferors and
Irrevocable trusts in existence on
•
However, for terminations in 2011,
Substantially separate and
September 25, 1985, that hold qualified
the due date for the Form 706-GS(T)
independent shares of different
terminable interest property (QTIP) (as
will be April 17, 2012, because April 15
beneficiaries in a trust.
defined in section 2056(b)(7)) as a
is a Sunday and April 16 is the
result of an election under section
If you are the trustee for separate
Emancipation Day holiday in the District
2056(b)(7) or 2523(f), are treated for
trusts as described above, you must file
of Columbia. See section 7503.
purposes of the GST tax as if the QTIP
a single Form 706-GS(T) but separate
election had not been made. Thus,
Schedules A for each separate trust, as
If you are not able to file the return
transfers from such a trust will not be
that term is used here.
by the due date, you may request an
subject to the GST tax.
extension of time to file by filing Form
Terminations Subject to
7004, Application for Automatic
Additions to irrevocable trusts. If an
Extension of Time To File Certain
addition has been made after
GST Tax
Business Income Tax, Information, and
September 25, 1985, to an irrevocable
Other Returns. The extension is
A termination may occur by reason of
trust, the termination of any interest in
automatic, so you do not have to sign
death, lapse of time, release of a
the trust may be subject in part to the
the form or provide a reason for your
power, or any other means.
GST tax. Additions include constructive
Nov 14, 2011
Cat. No. 10829R
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial