Instructions For Form 706-Gs(T) - (Rev. February 2011) (Page 6 of 6) in pdf

A special QTIP election allows

applicable fraction must be refigured.

Line 8

property for which a QTIP election was

The numerator of the new fraction is

Enter, from the table below, the

made for estate or gift tax purposes to

the sum of:

applicable tax rate at the time the

be treated for GST tax purposes as if

1. The exemption allocated to the

generation-skipping transfer occurred.

the QTIP election had not been made.

current transfer and

If the special QTIP election has been

Table of Maximum Tax Rates

2. The nontax portion of the trust

made, the predeceased settlor spouse

immediately before the current transfer

is the transferor and the value is that

(the product of the applicable fraction

The

spouse’s estate or gift tax value under

and the value of all the property in the

If the generation-skipping

maximum

the rules described above. The settlor

trust immediately before the current

transfer occurred . . . . . . . . tax rate is

spouse or the executor of the

transfer).

predeceased settlor spouse’s estate

After December 31, 2002, but

49%

must have made the special QTIP

The denominator of the new fraction

before January 1, 2004

election.

is the sum of:

Transfers subject to an estate tax

1. The value of the current transfer

After December 31, 2003, but

48%

inclusion period. If a transferor made

(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 trust after September 25, 1985.

before January 1, 2011

The value of the property for the

purpose of figuring the inclusion ratio is

Charitable lead annuity trusts. For

After December 31, 2010, but

35%

the estate tax value if the property is

termination of an interest in a charitable

before January 1, 2013

includible in the transferor’s gross

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

trust and

GST tax from all Schedules A in excess

settlor’s estate,

2. Interest on the exemption

of six.

•

The date of a generation-skipping

determined at the interest rate used to

transfer of the property, or

Line 12

figure the estate or gift deduction for

•

The date of death of the settlor.

the charitable lead annuity and for the

Make checks payable to the “United

If the allocation is not made on a

actual period of the charitable lead

States Treasury.” Please write the

timely filed gift tax return, the property

annuity.

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

is valued at the time of the late

“Form 706-GS(T)” on the check to

allocation.

In the case of a late allocation, the

ensure posting to the proper account.

Multiple transfers. When a transfer is

amount of interest accrued prior to the

Enclose, but do not attach, the payment

made to a pre-existing trust, the

date of allocation is zero.

with Form 706-GS(T).

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

Instead, see Where To File.

-6-

Instructions For Form 706-Gs(T) - (Rev. February 2011) Page 6

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