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A special QTIP election allows

Multiple transfers. When a transfer is

In the case of a late allocation, the

property for which a QTIP election was

made to a pre-existing trust, the

amount of interest accrued prior to the

made for estate or gift tax purposes to

applicable fraction must be refigured.

date of allocation is zero.

be treated for GST tax purposes as if

The numerator of the new fraction is

Line 8

the QTIP election had not been made.

the sum of:

Enter, using the table below, the

If the special QTIP election has been

1. The exemption allocated to the

made, the predeceased settlor spouse

maximum federal estate tax rate in

current transfer and

effect at the time the generation-

is the transferor and the value is that

2. The nontax portion of the trust

skipping transfer occurred.

spouse’s estate or gift tax value under

immediately before the current transfer

the rules described above. The settlor

(the product of the applicable fraction

Table of Maximum Tax Rates

spouse or the executor of the

and the value of all the property in the

predeceased settlor spouse’s estate

trust immediately before the current

must have made the special QTIP

transfer).

The

election.

If the generation-skipping

maximum

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

The denominator of the new fraction

Transfers subject to an estate tax

is the sum of:

inclusion period. If a transferor made

After December 31, 2002 but

49%

an inter vivos transfer, and the property

1. The value of the current transfer

before January 1, 2004

transferred would have been includible

(minus any federal estate tax or state

in the transferor’s estate if he or she

death tax actually paid by the trust

After December 31, 2003 but

48%

had died immediately after the transfer

attributable to such property and any

before January 1, 2005

(other than by reason of the transferor

charitable deduction allowed for such

dying within 3 years of making the gift),

property) and

After December 31, 2004 but

47%

for purposes of determining the

2. The value (determined under the

before January 1, 2006

inclusion ratio, an allocation of GST

rules described above) of all property in

exemption will only become effective at

the trust immediately before the current

After December 31, 2005 but

46%

the close of the estate tax inclusion

transfer.

before January 1, 2007

period (ETIP).

To figure the inclusion ratio, use only

The value of the property for the

After December 31, 2006 but

45%

the value of the total additions made to

before January 1, 2010

purpose of figuring the inclusion ratio is

the trust after September 25, 1985.

the estate tax value if the property is

includible in the transferor’s gross

Charitable lead annuity trusts. For

Part III—Tax

estate. Otherwise, the property is

termination of an interest in a charitable

valued at the close of the ETIP,

lead annuity trust, the numerator of the

Computation

provided that the GST exemption is

applicable fraction is the adjusted GST

allocated on a timely filed gift tax return

exemption as defined below. The

Line 9b

for the calendar year in which the ETIP

denominator is the value of the trust

closes.

If you have more than six Schedules A

immediately after the termination of the

attached to this form, enter on the line

charitable lead annuity interest.

The ETIP closes at the earliest of:

•

indicated the total GST tax from all

The time the transferred property

The adjusted GST exemption is the

Schedules A in excess of six.

would no longer be includible in the

sum of:

settlor’s estate,

Line 12

1. The exemption allocated to the

•

The date of a generation-skipping

trust and

Make your check payable to the “United

transfer of the property, or

2. Interest on the exemption

States Treasury.” Please write the

•

The date of death of the settlor.

determined at the interest rate used to

trust’s EIN, the year, and “Form

If the allocation is not made on a

figure the estate or gift deduction for

706-GS(T)” on the check to assist us in

timely filed gift tax return, the property

the charitable lead annuity and for the

posting it to the proper account.

is valued at the time of the late

actual period of the charitable lead

Enclose, but do not attach, the payment

allocation.

annuity.

with Form 706-GS(T).

Privacy Act and 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. Section 6109 requires return preparers to provide

their identifying numbers on the return.

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 on page 1.

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Instructions For Form 706-Gs(T) - Generation-Skipping Transfer Tax Return For Terminations - 2008 Page 6

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