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United States Gift (and Generation-

1. Any property distributed or

the transfer and recovered from the

Skipping Transfer) Tax Return) of the

otherwise disposed of or separated

trust.

donor spouse or the deceased settlor’s

from the trust within 6 months after the

Round off the allocation fraction to

estate tax return (Form 706, United

termination is valued on the date of

five decimal places (for example,

States Estate (and Generation-Skipping

distribution or other disposition. Value

“.00123”).

Transfer) Tax Return) for the

the property on the date it ceases to

Column a. Item no. Identify by

information needed to figure the

form a part of the trust; that is, on the

separate item number all property in

inclusion ratio.

date the title passes as a result of its

which an interest has terminated during

distribution or other disposition.

Schedule A (Lines 1–4)

the tax year. You may combine under

2. Any property not distributed or

the same item number all property that

otherwise disposed of within 6 months

Note. If you need more than one

has the same termination date,

following the termination is valued on

Schedule A, make copies before

valuation date, and unit value, such as

the date 6 months after the termination.

completing it. Also, make a copy of

stocks or bonds. Otherwise, assign a

3. Any property or interest that is

Schedule B for each Schedule A you

separate item number to each article of

affected by mere lapse of time is valued

will file. If you need additional space to

property.

as of the time of termination. However,

provide all the required information for

you may change this date of

Column b. Description of property.

any given schedule, attach a separate

termination value to the value as of the

sheet of the same size to that schedule.

Real estate. Describe the real

date of distribution or other disposition

estate in enough detail so that the IRS

Combine on a single Schedule A all

to account for any change that is not

can easily locate it for inspection and

terminations from a single trust that

due to mere lapse of time.

valuation. For each parcel of real

have the same inclusion ratio (as

estate, report the area and, if the parcel

If the alternate valuation date falls

discussed later). However, you must

is improved, describe the

after the initial due date of the return,

complete a separate Schedule A for

improvements. For city or town

you must request an extension to file

each terminating interest that has a

property, report the street number,

on Form 7004. The extension is

different inclusion ratio. Number each

ward, subdivision, block and lot, etc.

automatic, so you do not have to sign

Schedule A consecutively in the space

For rural property, report the township,

the form or provide a reason for your

provided at the top.

range, landmarks, etc.

request. See Form 7004 for more

Line 2

information.

Stocks and bonds. For stocks,

For the purposes of line 2, termination

give:

Line 4

•

means the conclusion (for example, by

Number of shares;

•

death, lapse of time, or release of

Terminations of interests in trusts to

Whether common or preferred;

•

power, etc.) of an interest in property

which additions have been made.

Issue;

•

held in trust unless:

As described above, when an addition

Par value where needed for

•

Immediately after the termination, a

is made to an irrevocable trust after

valuation;

•

non-skip person has an interest in such

September 25, 1985, only the portion of

Price per share;

•

property or

the trust resulting from the addition is

Exact name of corporation;

•

At no time after the termination is it

subject to the GST tax. For

Principal exchange upon which sold,

possible for a distribution (including

terminations, this portion is the product

if listed on an exchange; and

•

distributions on termination) to be made

of the allocation fraction and the value

CUSIP number.

from the trust to a skip person.

of the property subject to the

For bonds, give:

termination (including accumulated

Also, if you are reporting separate

•

Quantity and denomination;

income and appreciation on that

•

trusts, defined above, on this Form

Name of obligor;

property).

•

706-GS(T), explain why you are

Date of maturity;

•

treating parts of the trust as separate

The allocation fraction is a fraction,

Principal exchange, if listed on an

trusts.

the numerator of which is the value of

exchange;

•

the addition as of the date it was made

Interest rate;

Line 3

•

(regardless of whether it was subject to

Interest due date; and

•

You may elect alternate valuation under

gift or estate tax). The denominator of

CUSIP number.

section 2032 for all terminations in the

the fraction is the fair market value of

If the stock or bond is unlisted, show

same trust that occurred at the same

the entire trust immediately after the

the company’s principal business office.

time as and as a result of the death of

addition, less any amount of expenses,

an individual. If you elect alternate

indebtedness, or taxes that would be

The CUSIP (Committee on Uniform

valuation, you must use it to value all

allowable as a deduction under section

Security Identification Procedure)

property included in those terminations.

2053.

number is a nine-digit number assigned

to all stocks and bonds traded on major

You may not elect alternate

When there is more than one

exchanges and many unlisted

valuation unless the election will

addition, the allocation fraction must be

securities. Usually, the CUSIP number

decrease both the total value of the

revised after each addition. The

is printed on the face of the stock

property interests that were subject to

numerator of the revised fraction is the

certificate. If the CUSIP number is not

the termination and the total net GST

sum of:

•

printed on the certificate, it may be

tax due after the allowable credit.

The value of the portion of the trust

obtained through the company’s

subject to the GST tax immediately

Check the box on line 3 of all the

transfer agent.

before the last addition, and

applicable Schedules A if you elect

•

The amount of the latest addition.

Other personal property. Any

alternate valuation. Once made, the

interest in personal property involved in

election cannot be revoked. You may

The denominator of the revised

a termination must be described in

make the election on a late filed Form

fraction is the total value of the entire

enough detail that the IRS can value it.

706-GS(T), provided it is not filed later

trust immediately after the latest

than 1 year after the due date

addition.

Column d. Valuation date. Unless

(including extensions).

If the addition results from a

you elected alternate valuation by

If you elect alternate valuation, value

generation-skipping transfer, reduce

checking the box on line 3 of Schedule

the property interest that has been

both the numerator and denominator by

A, the valuation date should be the

terminated as follows:

the amount of any GST tax imposed on

same as the termination date.

-4-

Instructions For Form 706-Gs(T) - Generation-Skipping Transfer Tax Return For Terminations - Internal Revenue Service - 2011 Page 4

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