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Table of Maximum Tax Rates

made, the predeceased settlor spouse

2. The nontax portion of the trust

is the transferor and the value is that

immediately before the current transfer

spouse’s estate or gift tax value under

(the product of the applicable fraction

The

the rules described above. The settlor

and the value of all the property in the

If the generation-skipping

maximum

spouse or the executor of the

trust immediately before the current

transfer occurred

tax rate is

predeceased settlor spouse’s estate

transfer).

must have made the special QTIP

After December 31, 2002, but

49%

election.

The denominator of the new fraction

before January 1, 2004 . . . .

is the sum of:

Transfers subject to an estate tax

1. The value of the current transfer

inclusion period. If a transferor made

After December 31, 2003, but

48%

(minus any federal estate tax or state

before January 1, 2005 . . . .

an inter vivos transfer, and the property

death tax actually paid by the trust

transferred would have been includible

attributable to such property and any

After December 31, 2004, but

47%

in the transferor’s estate if he or she

charitable deduction allowed for such

before January 1, 2006 . . . .

had died immediately after the transfer

property) and

(other than by reason of the transferor

2. The value (determined under the

After December 31, 2005, but

46%

dying within 3 years of making the gift),

rules described above) of all property in

before January 1, 2007 . . . .

for purposes of determining the

the trust immediately before the current

inclusion ratio, an allocation of GST

transfer.

After December 31, 2006, but

45%

exemption will only become effective at

before January 1, 2010 . . . .

the close of the estate tax inclusion

To figure the inclusion ratio, use only

period (ETIP).

the value of the total additions made to

After December 31, 2009, but

The value of the property for the

the trust after October 22, 1986.

before January 1, 2011 . . . .

purpose of figuring the inclusion ratio is

Charitable lead annuity trusts. For

the estate tax value if the property is

After December 31, 2010, but

35%

termination of an interest in a charitable

includible in the transferor’s gross

before January 1, 2013 . . . .

lead annuity trust, the numerator of the

estate. Otherwise, the property is

applicable fraction is the adjusted GST

valued at the close of the ETIP,

exemption as defined below. The

Part III—Tax

provided that the GST exemption is

denominator is the value of the trust

allocated on a timely filed gift tax return

Computation

immediately after the termination of the

for the calendar year in which the ETIP

charitable lead annuity interest.

closes.

Line 9b

The adjusted GST exemption is the

The ETIP closes at the earliest of:

•

sum of:

If you have more than six Schedules A

The time the transferred property

attached to this form, enter the total

1. The exemption allocated to the

would no longer be includible in the

GST tax from all Schedules A in excess

settlor’s estate,

trust and

•

of six.

The date of a generation-skipping

2. Interest on the exemption

transfer of the property, or

determined at the interest rate used to

Line 12

•

figure the estate or gift deduction for

The date of death of the settlor.

Make checks payable to the “United

the charitable lead annuity and for the

If the allocation is not made on a

States Treasury.” Please write the

actual period of the charitable lead

timely filed gift tax return, the property

trust’s EIN, the year of the transfer, and

annuity.

is valued at the time of the late

“Form 706-GS(T)” on the check to

allocation.

ensure posting to the proper account.

In the case of a late allocation, the

Enclose, but do not attach, the payment

Multiple transfers. When a transfer is

amount of interest accrued prior to the

with Form 706-GS(T).

made to a pre-existing trust, the

date of allocation is zero.

applicable fraction must be refigured.

Line 8

The numerator of the new fraction is

the sum of:

Enter, from the table below, the

1. The exemption allocated to the

applicable tax rate at the time the

current transfer and

generation-skipping transfer occurred.

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 law or

Preparing the form

Copying, assembling, and

the form

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:M:S, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not send the form to this address.

Instead, see Where To File.

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Instructions For Form 706-Gs(T) - Generation-Skipping Transfer Tax Return For Terminations - Internal Revenue Service - 2011 Page 6

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