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taxability of subsequent distributions from

from “separate trusts” as that term is

Non-skip Person

the trust involving that property, the settlor

defined on page 1. You must report

A non-skip person is any person who is

of the property is assigned to the first

distributions from such separate trusts

not a skip person.

generation above the highest generation of

under different item numbers even if they

any person who has an interest in the trust

have the same inclusion ratio.

Generation Assignment

immediately after the initial transfer.

Column b. Description of Property

A generation is determined along family

lines as follows:

Signature

Real estate.—Describe the real estate in

1. Where the beneficiary is a lineal

enough detail so that the IRS can easily

Form 706-GS(D-1) must be signed by the

descendent of a grandparent of the

locate it for inspection and valuation. For

trustee or by an authorized representative.

transferor (e.g., the donor’s cousin, niece,

each parcel of real estate report the

If someone prepares your return and

nephew, etc.), the number of generations

location and, if the parcel is improved,

does not charge you, that person should

describe the improvements. For city or

between the transferor and the descendent

not sign the return. Generally, anyone who

is determined by subtracting the number of

town property, report the street number,

is paid to prepare your return must sign it

ward, subdivision, block and lot, etc. For

generations between the grandparent and

in the space indicated.

the transferor from the number of

rural property, report the township, range,

generations between the grandparent and

landmarks, etc.

the descendent.

Specific Instructions

Stocks and bonds.—For stocks indicate:

2. Where the beneficiary is the lineal

Number of shares

descendent of a grandparent of a spouse

Part I. General Information

Whether common or preferred

(or former spouse) of the transferor, the

Issue

number of generations between the

Line 1a. Skip Person Distributee’s

transferor and the descendent is

Par value where needed for valuation

Identifying Number

determined by subtracting the number of

Price per share

generations between the grandparent and

Enter here the social security number of an

Exact name of corporation

the spouse (or former spouse) from the

individual distributee. (If the number is

number of generations between the

Principal exchange upon which sold, if

unknown or the individual has no number,

grandparent and the descendent.

listed on an exchange

indicate “unknown” or “none.”) If the

3. For this purpose, a relationship by

distributee is a trust, enter the trust’s

CUSIP number if available.

employer identification number (EIN).

adoption is considered a blood

For bonds indicate:

relationship. A relationship by half-blood is

Line 2a. Trust’s Employer

Quantity and denomination

considered a relationship by whole blood.

Identification Number

Name of obligor

4. The spouse or former spouse of a

Date of maturity

transferor or lineal descendent is

Enter here the EIN of the trust from which

considered to belong to the same

Interest rate

the distribution was made.

generation as the transferor or lineal

A nonexplicit trust as described on page

Interest due date

descendent, as the case may be.

1 under Who Must File must have an EIN

Principal exchange, if listed on an

5. A person who is not assigned to a

that is separate from any other entity’s EIN

exchange

generation according to the rules above is

and that will be used only by the

CUSIP number if available.

assigned to a generation based on his or

nonexplicit trust.

her birth date as follows:

If the stock or bond is unlisted, show the

A trust or nonexplicit trust that does not

company’s principal business office.

a. A person who was born not more

have an EIN should apply for one on Form

than 12

⁄

years after the transferor is in the

The CUSIP (Committee on Uniform

SS-4, Application for Employer

transferor’s generation;

Security Identification Procedure) number

Identification Number. This form may be

is a nine-digit number that is assigned to

b. A person born more than 12

⁄

years,

obtained from most IRS and Social

all stocks and bonds traded on major

but not more than 37

⁄

years, after the

Security Administration offices. Send Form

exchanges and many unlisted securities.

transferor is in the first generation younger

SS-4 to the same Internal Revenue Service

Usually the CUSIP number is printed on

than the transferor;

Center where Form 706-GS(D-1) is filed. If

the face of the stock certificate. If the

the EIN has not been received by the filing

c. Similar rules apply for a new

CUSIP number is not printed on the

time for the GST form, write “Applied for”

generation every 25 years.

certificate, it may be obtained through the

on line 2a. Get Pub. 583, Taxpayers

If more than one of the rules for

company’s transfer agent.

Starting a Business, for more information.

assigning generations applies to a

Other Personal Property.—Any personal

Most IRS forms and publications may be

beneficiary, the beneficiary is generally

property distributed must be described in

obtained from IRS offices or by calling our

assigned to the youngest of the

enough detail that the IRS can ascertain its

toll-free number 1-800-TAX-FORM

generations that apply.

value.

(1-800-829-3676).

If an entity such as a partnership,

corporation, trust, or estate has an interest

Column d. Inclusion Ratio

Part II. Distributions

in the property, each individual who has a

The trustee must provide the inclusion ratio

beneficial interest in the entity is treated as

Report all taxable distributions made

for every distribution. All distributions, or

having an interest in the property. The

during the year from the trust listed on line

any part of a single distribution, that have

individual is then assigned to a generation

2 to the skip person distributee listed on

different inclusion ratios must be listed as

using the rules described above.

line 1. Report a distribution even if its

separate items in column a.

Governmental entities and certain

inclusion ratio is zero.

The inclusion ratio is the excess of 1

charitable organizations are assigned to

over the applicable fraction determined for

Column a. Item no.

the transferor’s generation. Distributions to

the trust from which the distribution was

them will never be generation-skipping

Assign consecutive numbers to each

made.

transfers. For more information, see

distribution made during the year. Different

Applicable fraction.—The applicable

section 2651(e)(3).

items of property having different inclusion

fraction is a fraction, the numerator of

ratios must be listed separately in Part II.

Multiple Skips

which is the amount of the GST exemption

Include under a single item number any

allocated to the trust. The denominator of

If after a generation-skipping transfer the

properties having the same inclusion ratio

the fraction is:

property transferred is held in trust, then

even if they were distributed at different

for the purpose of determining the

times. An exception to this is distributions

Page 3

Instructions For Trustee For Form 706-Gs(D-1) - Notification Of Distribution From A Generation-Skipping Trust Page 3

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