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Instructions for Form

Department of the Treasury

Internal Revenue Service

706-GS(T)

(Rev. November 2017)

Generation-Skipping Transfer Tax Return for Terminations

7004, Application for Automatic

If you are the trustee for separate

Section references are to the Internal Revenue

Code unless otherwise noted.

Extension of Time To File Certain

trusts as described above, you must file

Business Income Tax, Information, and

a single Form 706-GS(T) but separate

Future Developments

Other Returns. The extension is

Schedules A for each separate trust, as

automatic, so you do not have to sign

that term is used here.

For the latest information about

the form or provide a reason for your

developments related to Form

Terminations Subject to

request. You must file Form 7004 on or

706-GS(T) and its instructions, such as

before the regular due date of Form

GST Tax

legislation enacted after they were

706-GS(T). See Form 7004 for more

A termination may occur by reason of

published, go to IRS.gov/Form706GST.

information.

death, lapse of time, release of a power,

Reminder

or any other means.

Where To File

For federal tax purposes, marriages of

File Form 706-GS(T) at the following

In general, all taxable terminations

couples of the same sex are treated the

address.

are subject to the GST tax. A taxable

same as marriages of couples of the

termination is the conclusion of an

opposite sex. The term “spouse”

Department of the Treasury

interest in property held in trust unless:

includes an individual married to a

Internal Revenue Service

Immediately after the termination, a

person of the same sex. However,

Cincinnati, OH 45999

non-skip person has an interest in the

individuals who have entered into a

property, or

registered domestic partnership, civil

Trusts

At no time after the termination may a

union, or other similar relationship that

distribution be made from the trust to a

Nonexplicit trusts. An arrangement

isn’t considered a marriage under state

skip person.

that has substantially the same effect as

law aren’t considered married for

Exceptions

a trust will be treated as a trust even

federal tax purposes. If you believe the

though it is not an explicit trust.

new law may affect your estate or gift

Irrevocable trusts. Except as

Examples of such arrangements are

tax liability or filing requirement, please

described under Additions to

insurance and annuity contracts,

continue to monitor

IRS.gov

for

irrevocable trusts below, the GST tax

arrangements involving life estates and

additional guidance.

does not apply to any termination of an

remainders, and estates for years.

interest in a trust that was irrevocable on

General Instructions

In general, a transfer of property in

September 25, 1985. Any trust in

which the identity of the transferee is

existence on September 25, 1985, will

Purpose of Form

conditioned on the occurrence of an

be considered irrevocable unless:

event is a transfer in trust. This rule

1. On September 25, 1985, the

Form 706-GS(T) is used by a trustee to

does not apply to a testamentary trust,

settlor held a power with respect to such

figure and report the tax due from

however, if the event is to occur within 6

trust that would have caused the value

certain trust terminations that are

months of the transferor's date of death.

of the trust to be included in the settlor's

subject to the generation-skipping

Nonexplicit trusts do not include

gross estate for federal estate tax

transfer (GST) tax.

decedents' estates.

purposes by reason of section 2038

Who Must File

(regarding revocable transfers) if the

In the case of a nonexplicit trust, the

settlor had died on September 25, 1985;

person in actual or constructive

In general, the trustee of any trust that

possession of the property involved is

has a taxable termination (defined

considered the trustee and is liable for

below) must file Form 706-GS(T) for the

2. Regarding a policy of life

filing Form 706-GS(T).

insurance that is treated as a trust under

tax year in which the termination

occurred.

section 2652(b), the insured possessed

If you are filing this return for a

an incident of ownership on September

nonexplicit trust, see the instructions for

When To File

25, 1985, that would have caused the

line 1b.

insurance proceeds to be included in

Generally, the trustee must file Form

Separate trusts. You must treat as

the insured's gross estate for federal

706-GS(T) by April 15th of the year

separate trusts:

estate tax purposes if the insured had

following the calendar year in which the

Portions of a trust that are attributable

died on September 25, 1985.

termination occurs. If the due date falls

to transfers from different transferors,

on a Saturday, Sunday, or legal holiday,

and

For more information, see

file on the next business day.

Substantially separate and

Regulations section 26.2601-1(b)(i) and

independent shares of different

(ii).

If you are not able to file the return by

beneficiaries in a trust.

the due date, you may request an

Trusts containing qualified termina-

extension of time to file by filing Form

ble interest property. Irrevocable

Nov 14, 2017

Cat. No. 10829R

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

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