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Skipping Transfer) Tax Return) of the

If you elect alternate valuation, value

If the addition results from a

donor spouse or the decedent’s estate

the property interest that has been

generation-skipping transfer, reduce

tax return (Form 706, United States

terminated as follows.

both the numerator and denominator by

Estate (and Generation-Skipping

the amount of any GST tax imposed on

1. Any property distributed or

Transfer) Tax Return) for the

the transfer and recovered from the

otherwise disposed of or separated

information needed to figure the

trust.

from the trust within 6 months after the

inclusion ratio.

termination is valued on the date of

Round off the allocation fraction to

distribution or other disposition. Value

five decimal places (for example,

Schedule A (Lines 1–4)

the property on the date it ceases to

“.00123”).

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

Column a. Item no. Identify by

Note. If you need more than one

date the title passes as a result of its

separate item number all property in

Schedule A, make copies before

distribution or other disposition.

which an interest has terminated during

completing it. Also, make a copy of

2. Any property not distributed or

the tax year. You may combine under

Schedule B for each Schedule A you

otherwise disposed of within 6 months

the same item number all property that

will file. If you need additional space to

following the termination is valued on

has the same termination date,

provide all the required information for

the date 6 months after the termination.

valuation date, and unit value, such as

any given schedule, attach a separate

3. Any property or interest that is

stocks or bonds. Otherwise, assign a

sheet of the same size to that schedule.

affected by mere lapse of time is valued

separate item number to each article of

as of the time of termination. However,

property.

Combine on a single Schedule A all

you may change this date of

terminations from a single trust that

Column b. Description of property.

termination value to the date of

have the same inclusion ratio (as

Real estate. Describe the real

distribution or other disposition to

discussed on page 5). However, you

estate in enough detail so that the IRS

account for any change that is not due

must complete a separate Schedule A

can easily locate it for inspection and

to mere lapse of time.

for each terminating interest that has a

valuation. For each parcel of real

different inclusion ratio. Number each

estate, report the area and, if the parcel

If the alternate valuation date falls

Schedule A consecutively in the space

is improved, describe the

after the initial due date of the return,

provided at the top.

improvements. For city or town

you must request an extension to file

property, report the street number,

on Form 7004. The extension is

Line 2

ward, subdivision, block and lot, etc.

automatic, so you do not have to sign

For rural property, report the township,

For the purposes of line 2, termination

the form or provide a reason for your

range, landmarks, etc.

means the termination (for example, by

request. See Form 7004 for more

death, lapse of time, or release of

information.

Stocks and bonds. For stocks,

power, etc.) of an interest in property

give:

Line 4

•

held in trust unless:

Number of shares;

•

Immediately after the termination, a

Whether common or preferred;

Terminations of interests in trusts to

•

non-skip person has an interest in such

Issue;

which additions have been made.

•

property or

Par value where needed for

As described on page 1, when an

•

At no time after the termination is it

valuation;

addition is made to an irrevocable trust

•

possible for a distribution (including

Price per share;

after September 25, 1985, only the

•

distributions on termination) to be made

Exact name of corporation;

portion of the trust resulting from the

•

from the trust to a skip person.

Principal exchange upon which sold,

addition is subject to the GST tax. For

if listed on an exchange; and

terminations, this portion is the product

•

Also, if you are reporting separate

CUSIP number.

of the allocation fraction and the value

trusts (as that term is described under

of the property subject to the

For bonds, give:

Who Must File on page 1) on this Form

•

termination (including accumulated

Quantity and denomination;

706-GS(T), explain why you are

•

income and appreciation on that

Name of obligor;

treating parts of the trust as separate

•

property).

Date of maturity;

trusts.

•

Principal exchange, if listed on an

The allocation fraction is a fraction,

exchange;

Line 3

the numerator of which is the value of

•

Interest rate;

the addition as of the date it was made

•

You may elect alternate valuation under

Interest due date; and

(regardless of whether it was subject to

•

section 2032 for all terminations in the

CUSIP number.

gift or estate tax). The denominator of

same trust that occurred at the same

the fraction is the fair market value of

If the stock or bond is unlisted, show

time as and as a result of the death of

the entire trust immediately after the

the company’s principal business office.

an individual. If you elect alternate

addition, less any trust amount that is

The CUSIP (Committee on Uniform

valuation, you must use it to value all

similar to expenses, indebtedness, or

Security Identification Procedure)

property included in those terminations.

taxes that would be allowable as a

number is a nine-digit number assigned

deduction under section 2053.

You may not elect alternate

to all stocks and bonds traded on major

valuation unless the election will

exchanges and many unlisted

When there is more than one

decrease both the total value of the

securities. Usually, the CUSIP number

addition, the allocation fraction must be

property interests that were subject to

is printed on the face of the stock

revised after each addition. The

the termination and the total net GST

certificate. If the CUSIP number is not

numerator of the revised fraction is the

tax due after the allowable credit.

printed on the certificate, it may be

sum of:

•

obtained through the company’s

The value of the portion of the trust

Check the box on line 3 of all the

transfer agent.

subject to the GST tax immediately

applicable Schedules A if you elect

before the last addition, and

Other personal property. Any

alternate valuation. Once made, the

•

The amount of the latest addition.

interest in personal property involved in

election cannot be revoked. You may

a termination must be described in

make the election on a late filed Form

The denominator of the revised

enough detail that the IRS can value it.

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

fraction is the total value of the entire

than 1 year after the due date

trust immediately after the latest

Column d. Valuation date. Unless

(including extensions).

addition.

you elected alternate valuation by

-4-

Instructions For Form 706-Gs(T) - Generation-Skipping Transfer Tax Return For Terminations - 2008 Page 4

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