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Line 2. If you are not splitting gifts with

Any other property interest that after a

Line 11. You may deduct from the total

your spouse, skip this line and enter the

period of time will terminate or fail.

gifts made during the calendar year all

amount from line 1 on line 3. If you are

gifts you gave to or for the use of:

If you transfer an interest to your

splitting gifts with your spouse, show half

spouse as sole joint tenant with yourself

The United States, a state or political

of the gifts you made to third parties on

or as a tenant by the entirety, the interest

subdivision of a state or the District of

line 2. On the dotted line indicate which

is not considered a terminable interest just

Columbia, for exclusively public purposes;

numbered items from Parts 1 and 2 of

because the tenancy may be severed.

Any corporation, trust, community

Schedule A you treated this way.

Life estate with power of appointment.

chest, fund, or foundation organized and

Generally, if you elect to split your gifts,

You may deduct, without an election, a

operated only for religious, charitable,

you must split ALL gifts made by you and

gift of a terminable interest if all four

scientific, literary, or educational

your spouse to third-party donees. The

requirements below are met:

purposes, or to prevent cruelty to children

only exception is if you gave your spouse

or animals, or to foster national or

1. Your spouse is entitled for life to all

a general power of appointment over a

international amateur sports competition

of the income from the entire interest;

gift you made.

(if none of its activities involve providing

2. The income is paid yearly or more

Line 4. If you are not splitting gifts, skip

athletic equipment (unless it is a qualified

often;

this line and go to line 5. If you gave all

amateur sports organization)), as long as

3. Your spouse has the unlimited

of the gifts, and your spouse is only filing

no part of the earnings benefits any one

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

to show his or her half of those gifts, you

person, no substantial propaganda is

to appoint the entire interest in all

need not enter any gifts on line 4 of your

produced, and no lobbying or

circumstances; and

return or include your spouse's half

campaigning for any candidate for public

anywhere else on your return. Your

4. No part of the entire interest is

office is done;

spouse should enter the amount from

subject to another person's power of

A fraternal society, order, or association

Schedule A, line 2, of your return on

appointment (except to appoint it to your

operating under a lodge system, if the

Schedule A, line 4, of his or her return.

spouse).

transferred property is to be used only for

If both you and your spouse make gifts

If either the right to income or the power

religious, charitable, scientific, literary, or

for which a return is required, the amount

of appointment given to your spouse

educational purposes, including the

each of you shows on Schedule A, line

pertains only to a specific portion of a

encouragement of art and the prevention

2, of his or her return must be shown on

property interest, the marital deduction is

of cruelty to children or animals;

Schedule A, line 4, of the other's return.

allowed only to the extent that the rights

Any war veterans' organization

of your spouse meet all 4 of the above

Line 6. Enter the total annual exclusions

organized in the United States (or any of

conditions. For example, if your spouse

you are claiming for the gifts listed on

its possessions), or any of its auxiliary

is to receive all of the income from the

Schedule A (including gifts listed on line

departments or local chapters or posts,

entire interest, but only has a power to

4). See Annual Exclusion on page 3. If

as long as no part of any of the earnings

appoint one-half of the entire interest,

you split a gift with your spouse, the

benefits any one person.

then only one-half qualifies for the marital

annual exclusion you claim against that

On line 11, show your total charitable,

deduction.

gift may not be more than your half of the

public, or similar gifts (minus annual

gift.

A partial interest in property is treated

exclusions allowed). On the dotted line,

as a specific portion of an entire interest

indicate which numbered items from the

Deductions

only if the rights of your spouse to the

top of Schedule A (or line 4) are charitable

Line 8. Enter on line 8 all of the gifts to

income and to the power constitute a

gifts.

fractional or percentile share of the entire

your spouse that you listed on Schedule

Line 14. If you will pay GST tax with this

property interest. This means that the

A and for which you are claiming a marital

return on any direct skips reported on this

interest or share will reflect any increase

deduction. Do not enter any gift that

return, the amount of that GST tax is also

or decrease in the value of the entire

you did not include on Schedule A. On

considered a gift and must be added to

property interest. If the spouse is entitled

the dotted line on line 8, indicate which

your other gifts reported on this return.

numbered items from Schedule A are gifts

to receive a specified sum of income

If you entered gifts on Part 2, or if you

to your spouse for which you are claiming

annually, the capital amount that would

and your spouse elected gift splitting and

the marital deduction.

produce such a sum will be considered

your spouse made gifts subject to the

the specific portion from which the spouse

Do not enter on line 8 any gifts to

GST tax that you are required to show on

is entitled to receive the income.

your spouse who was not a U.S. citizen

your Form 709, complete Schedule C,

Election to deduct qualified terminable

at the time of the gift.

and enter on line 14 the total of Schedule

interest property (QTIP). You may elect

You may deduct all gifts of

C, Part 3, column H. Otherwise, enter

to deduct a gift of a terminable interest if

nonterminable interests made during this

zero on line 14.

it meets requirements 1, 2, and 4 above,

time that you entered on Schedule A

Line 17. Section 2523(f)(6) creates an

even though it does not meet requirement

regardless of amount, and certain gifts of

automatic QTIP election for gifts of joint

terminable interests as outlined below.

and survivor annuities where the spouses

You make this election simply by listing

Terminable interests. Generally, you

are the only possible recipients of the

the qualified terminable interest property

cannot take the marital deduction if the

annuity prior to the death of the last

on Schedule A and deducting its value on

gift to your spouse is a terminable

surviving spouse.

line 8, Part 3, Schedule A. There is no

interest. In most instances, a terminable

The donor spouse can elect out of

longer a box to check to make the

interest is nondeductible if someone other

QTIP treatment, however, by checking the

election. You are presumed to have made

than the donee spouse will have an

box on line 17 and entering the item

the election for all qualified property that

interest in the property following the

number from Schedule A for the annuities

you both list and deduct on Schedule A.

termination of the donee spouse's

for which you are making the election.

You may not make the election on a late

interest. Some examples of terminable

Any annuities entered on line 17 cannot

filed Form 709.

interests are:

also be entered on line 8 of Schedule A,

Line 9. Enter the amount of the annual

A life estate;

Part 3. Any such annuities that are not

exclusions that were claimed for the gifts

An estate for a specified number of

listed on line 17 must be entered on line

you listed on line 8.

years; or

8 of Part 3, Schedule A. If there is more

Page 9

Instructions For Form 709 - United States Gift (And Generation-Skipping Transfer) Tax Return - 2000 Page 9

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