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In 2006, D gives a gift of $20,000 cash

General Information, Lines 12 – 18. Split

terminable interest that is required to be

to her niece and no other gifts. On her

Gifts on page 5); and

reported as described above. However, if

•

2006 Form 709, D reports in Part 1 of

In column F, enter the full value of the

you gave a gift of a future interest to your

Schedule A, the $20,000 gift to her niece

gift (including those made by your

spouse and you are required to report the

and an $11,000 gift to her son (the

spouse, if applicable). If you have chosen

gift on Form 709 because you gave the

portion of the 2005 gift that is treated as

to split gifts, that one-half portion of the

present interest to a donee other than

made in 2006). In column E of Part 1

gift is entered in column G.

your spouse, then you should enter the

(Schedule A), D lists “2006” as the date of

entire gift, including the future interest

Gifts to Donees Other Than

the gift.

given to your spouse, on Schedule A. You

Your Spouse

should use the rules under Gifts Subject

D makes no gifts in 2007, 2008, or

You must always enter all gifts of future

to Both Gift and GST Taxes, below, to

2009. She is not required to file Form 709

interests that you made during the

determine whether to enter the gift on

in any of those years to report the

calendar year regardless of their value.

Schedule A, Part 1, Part 2, or Part 3.

portion of the QTP gift, because she is

No gift splitting. If the total gifts of

Spouses who are not U.S. citizens. If

not otherwise required to file Form 709.

present interests to any donee are more

your spouse is not a U.S. citizen and you

You make the election by checking the

than $11,000 in the calendar year, then

gave him or her a gift of a future interest,

box on line B at the top of Schedule A.

you must enter all such gifts that you

you must report on Schedule A all gifts to

The election must be made for the

made during the year to or on behalf of

your spouse for the year. If all gifts to your

calendar year in which the contribution is

that donee, including those gifts that will

spouse were present interests, do not

made. Also attach an explanation that

be excluded under the annual exclusion.

report on Schedule A any gifts to your

includes the following:

If the total is $11,000 or less, you need

spouse if the total of such gifts for the

•

The total amount contributed per

not enter on Schedule A any gifts (except

year does not exceed $117,000 and all

individual beneficiary,

gifts of future interests) that you made to

gifts in excess of $11,000 would qualify

•

The amount for which the election is

that donee. Enter these gifts in the top

for a marital deduction if your spouse

being made, and

half of Part 1, 2, or 3, as applicable.

•

were a U.S. citizen (see the instructions

The name of the individual for whom

for Schedule A, Part 4, line 4, on page 9).

Gift splitting elected. Enter on Schedule

the contribution was made.

If the gifts exceed $117,000, you must

A the entire value of every gift you made

If you are electing gift splitting, apply

report all of the gifts even though some

during the calendar year while you were

the gift splitting rules before applying

may be excluded.

married, even if the gift’s value will be

these rules. Each spouse would then

less than $11,000 after it is split in

Gifts Subject to Both Gift

decide individually whether to make this

Column G of Part 1, 2, or 3 of

QTP election.

Schedule A.

and GST Taxes

Note. Contributions to qualified tuition

Gifts made by spouse. If you elected

programs do not qualify for the education

gift splitting and your spouse made gifts,

Definitions

exclusion.

list those gifts in the space below “Gifts

Direct skip. The GST tax you must

made by spouse” in Part 1, 2, or 3. Report

How To Complete Parts 1, 2,

report on Form 709 is that imposed only

these gifts in the same way you report

and 3

on inter vivos direct skips. An “inter vivos

gifts you made.

direct skip” is a transfer that is:

After you determine which gifts you made

•

Gifts to Your Spouse

Subject to the gift tax,

are subject to the gift tax and therefore

•

Of an interest in property, and

Except for the gifts described below, you

should be listed on Schedule A, you must

•

Made to a skip person.

do not need to enter any of your gifts to

divide these gifts between:

All three requirements must be met

your spouse on Schedule A.

1. Part 1 — those subject only to the

before the gift is subject to the GST tax.

Terminable interest. Terminable

gift tax (gifts made to nonskip persons —

interests are defined in the instructions to

A gift is “subject to the gift tax” if you

see Part 1 — Gifts Subject Only to Gift

Part 4, line 4 on page 9. If all the

are required to list it on Schedule A of

Tax on page 8),

terminable interests you gave to your

Form 709. However, if you make a

2. Part 2 — those subject to both the

spouse qualify as life estates with power

nontaxable gift (which is a direct skip) to a

gift and GST taxes (gifts made to skip

of appointment (defined under Life estate

trust for the benefit of an individual, this

persons — see Gifts Subject to Both Gift

with power of appointment on page 10),

transfer is subject to the GST tax unless:

and GST Taxes on this page and Part

you do not need to enter any of them on

2 — Direct Skips on page 9), and

1. During the lifetime of the

Schedule A.

3. Part 3 — those subject only to the

beneficiary, no corpus or income may be

gift tax at this time but which could later

distributed to anyone other than the

However, if you gave your spouse any

be subject to GST tax (gifts that are

terminable interest that does not qualify

beneficiary, and

indirect skips, see Part 3 — Indirect Skips

as a life estate with power of

2. If the beneficiary dies before the

on page 9).

termination of the trust, the assets of the

appointment, you must report on

Schedule A all gifts of terminable interests

trust will be included in the gross estate of

If you need more space, attach a

the beneficiary.

you made to your spouse during the year.

separate sheet using the same format as

Charitable remainder trusts. If you

Schedule A.

Note. If the property transferred in the

make a gift to a charitable remainder trust

direct skip would have been includible in

and your spouse is the only noncharitable

Use the following guidelines when

the donor’s estate if the donor had died

beneficiary (other than yourself), the

TIP

entering gifts on Schedule A:

immediately after the transfer, see

interest you gave to your spouse is not

Transfers Subject to an Estate Tax

•

considered a terminable interest and,

Enter a gift only once — in Part 1, Part

Inclusion Period on page 3.

therefore, should not be shown on

2, or Part 3;

•

To determine if a gift “is of an interest

Schedule A. For definitions and rules

Do not enter any gift or part of a gift

in property” and “is made to a skip

concerning these trusts, see section

that qualified for the political organization,

person,” you must first determine if the

2056(b)(8)(B) and Regulations section

educational, or medical exclusion;

•

donee is a “natural person” or a “trust” as

20.2055-2.

Enter gifts under “Gifts made by

defined below.

spouse” only if you have chosen to split

Future interest. Generally, you should

gifts with your spouse and your spouse is

not report a gift of a future interest to your

Trust. For purposes of the GST tax, trust

required to file a Form 709 (see Part 1 —

spouse unless the future interest is also a

includes not only an explicit trust, but also

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Instructions For Form 709 - United States Gift (And Generation-Skipping Transfer) Tax Return - 2005 Page 6

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