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A life estate,

Line 5

for which you are making the election.

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Any annuities entered on line 13 cannot

An estate for a specified number of

Enter the amount of the annual

also be entered on line 4 of Schedule A,

years, or

exclusions that were claimed for the gifts

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Part 4. Any such annuities that are not

Any other property interest that after a

you listed on line 4.

listed on line 13 must be entered on line 4

period of time will terminate or fail.

Line 7 — Charitable deduction

of Part 4, Schedule A. If there is more

If you transfer an interest to your

than one such joint and survivor annuity,

You may deduct from the total gifts made

spouse as sole joint tenant with yourself

you are not required to make the election

during the calendar year all gifts you gave

or as a tenant by the entirety, the interest

for all of them. Once made, the election is

to or for the use of:

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is not considered a terminable interest

irrevocable.

The United States, a state or political

just because the tenancy may be

subdivision of a state or the District of

severed.

Columbia, for exclusively public purposes;

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Schedule B—Gifts From

Any corporation, trust, community

Life estate with power of appointment.

chest, fund, or foundation organized and

You may deduct, without an election, a

Prior Periods

operated only for religious, charitable,

gift of a terminable interest if all four

scientific, literary, or educational

If you did not file gift tax returns for

requirements below are met:

purposes, or to prevent cruelty to children

previous periods, check the “No” box on

1. Your spouse is entitled for life to all

or animals, or to foster national or

line 11a of Part 1, page 1, and skip to the

of the income from the entire interest;

international amateur sports competition

Tax Computation on page 1. (However,

2. The income is paid yearly or more

(if none of its activities involve providing

be sure to complete Schedule C, if

often;

athletic equipment (unless it is a qualified

applicable.) If you filed gift tax returns for

3. Your spouse has the unlimited

amateur sports organization)), as long as

previous periods, check the “Yes” box on

power, while he or she is alive or by will,

no part of the earnings benefits any one

line 11a and complete Schedule B by

to appoint the entire interest in all

person, no substantial propaganda is

listing the years or quarters in

circumstances; and

produced, and no lobbying or

chronological order as described below. If

campaigning for any candidate for public

4. No part of the entire interest is

you need more space, attach a separate

office is done;

sheet using the same format as

subject to another person’s power of

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A fraternal society, order, or

appointment (except to appoint it to your

Schedule B.

association operating under a lodge

spouse).

If you filed returns for gifts made

system, if the transferred property is to be

before 1971 or after 1981, show the

used only for religious, charitable,

If either the right to income or the

calendar years in column A. If you filed

scientific, literary, or educational

power of appointment given to your

returns for gifts made after 1970 and

purposes, including the encouragement of

spouse pertains only to a specific portion

before 1982, show the calendar quarters.

art and the prevention of cruelty to

of a property interest, the marital

In column B, identify the Internal

children or animals; or

deduction is allowed only to the extent

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Revenue Service office where you filed

Any war veterans’ organization

that the rights of your spouse meet all

the returns. If you have changed your

organized in the United States (or any of

four of the above conditions. For

name, be sure to list any other names

its possessions), or any of its auxiliary

example, if your spouse is to receive all of

under which the returns were filed. If

departments or local chapters or posts, as

the income from the entire interest, but

there was any other variation in the

long as no part of any of the earnings

only has a power to appoint one-half of

names under which you filed, such as the

benefits any one person.

the entire interest, then only one-half

use of full given names instead of initials,

On line 7, show your total charitable,

qualifies for the marital deduction.

please explain.

public, or similar gifts (minus annual

A partial interest in property is treated

In column C, enter the amount of

exclusions allowed). On the dotted line,

as a specific portion of an entire interest

unified credit actually applied in the prior

indicate which numbered items from the

only if the rights of your spouse to the

period. If you are required to reduce your

top of Schedule A are charitable gifts.

income and to the power constitute a

allowable unified credit because of gifts

Line 10 —GST tax

fractional or percentile share of the entire

you made after September 8, 1976, and

If you will pay GST tax with this return on

property interest. This means that the

before January 1, 1977, enter the unified

interest or share will reflect any increase

any direct skips reported on this return,

credit determined after the reduction.

the amount of that GST tax is also

or decrease in the value of the entire

In column E, show the correct amount

property interest. If the spouse is entitled

considered a gift and must be added to

(the amount finally determined) of the

your other gifts reported on this return.

to receive a specified sum of income

taxable gifts for each earlier period.

annually, the capital amount that would

If you entered gifts on Part 2, or if you

See Regulations section 25.2504-2 for

produce such a sum will be considered

and your spouse elected gift splitting and

rules regarding the final determination of

the specific portion from which the spouse

your spouse made gifts subject to the

the value of a gift.

is entitled to receive the income.

GST tax that you are required to show on

your Form 709, complete Schedule C,

Election to deduct qualified terminable

and enter on line 10 the total of Schedule

interest property (QTIP). You may elect

Schedule C—Computation

C, Part 3, column H. Otherwise, enter

to deduct a gift of a terminable interest if it

zero on line 10.

of Generation-Skipping

meets requirements (1), (2), and (4)

above, even though it does not meet

Line 13 —QTIP election for

Transfer Tax

requirement (3).

annuities

Part 1—Generation-Skipping

Section 2523(f)(6) creates an automatic

You make this election simply by

QTIP election for gifts of joint and survivor

Transfers

listing the qualified terminable interest

annuities where the spouses are the only

property on Schedule A and deducting its

You must enter in Part 1 all of the gifts

possible recipients of the annuity prior to

value from Schedule A, Part 4, line 4. You

you listed in Part 2 of Schedule A, in that

the death of the last surviving spouse.

are presumed to have made the election

order and using those same values.

for all qualified property that you both list

The donor spouse can elect out of

Column B

and deduct on Schedule A. You may not

QTIP treatment, however, by checking

make the election on a late filed Form

the box on line 13 and entering the item

If you are reporting a generation-skipping

709.

number from Schedule A for the annuities

transfer that occurred because of the

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Instructions For Form 709 - United States Gift (And Generation-Skipping Transfer) Tax Return - 2005 Page 10

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