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This special rule also may apply in

not made in trust. You should list it in Part

The street number, name, and area if

other cases of the death of a parent of the

2 of Schedule A.

the property is located in a city; and

transferee. If property is transferred to a

A short statement of any improvements

Example 3. You establish a trust that

descendant of a parent of the transferor

made to the property.

is required to accumulate income for 10

and that person's parent (who is a lineal

years and then pay its income to your

descendant of the parent of the transferor)

For bonds, give:

grandchildren for their lives and upon their

is deceased at the time the transfer is

The number of bonds transferred;

deaths distribute the corpus to their

subject to gift or estate tax, then for

The principal amount of each bond;

children. Because the trust has no current

purposes of generation assignment, the

Name of obligor;

beneficiaries, there are no present

individual is treated as if he or she is a

Date of maturity;

interests in the property transferred to the

member of the generation that is one

Rate of interest;

trust. All of the persons to whom the trust

generation below the lower of:

Date or dates when interest is payable;

can make future distributions (including

The transferor's generation, or

Series number, if there is more than

distributions upon the termination of

The generation assignment of the

one issue;

interests in property held in trust) are skip

youngest living ancestor of the individual

Exchanges where listed or, if unlisted,

persons (that is, your grandchildren and

who also is a descendant of the parent of

give the location of the principal business

great-grandchildren). Therefore, the trust

the transferor.

office of the corporation; and

itself is a skip person and you should list

CUSIP number. The CUSIP number is a

the gift in Part 2 of Schedule A.

The same rules apply to the generation

nine-digit number assigned by the

assignment of any descendant of the

Example 4. You establish a trust that

American Banking Association to traded

individual.

pays all of its income to your

securities.

grandchildren for 10 years. At the end of

This rule does not apply to a transfer to

10 years, the corpus is to be distributed to

an individual who is not a lineal

For stocks:

your children. Since for this purpose

descendant of the transferor if the

Give number of shares;

interests in trusts are defined only as

transferor at the time of the transfer has

State whether common or preferred;

present interests, all of the interests in this

any living lineal descendants.

If preferred, give the issue, par value,

trust are held by skip persons (the

quotation at which returned, and exact

children's interests are future interests).

If any transfer of property to a trust

name of corporation;

Therefore, the trust is a skip person and

would have been a direct skip except for

If unlisted on a principal exchange, give

you should list the entire amount you

this generation assignment rule, then the

the location of the principal business office

transferred to the trust in Part 2 of

rule also applies to transfers from the trust

of the corporation, the state in which

Schedule A even though some of the

attributable to such property.

incorporated, and the date of

trust's ultimate beneficiaries are nonskip

incorporation;

Ninety-day rule. For assigning

persons.

If listed, give principal exchange; and

individuals to generations for purposes of

Part 1—Gifts Subject Only to

CUSIP number.

the GST tax, any individual who dies no

Gift Tax

later than 90 days after a transfer

occurring by reason of the death of the

For interests in property based on the

List in Part 1 gifts subject only to the gift

transferor is treated as having

length of a person's life, give the date of

tax. Generally, all of the gifts you made to

birth of the person. If you transfer any

predeceased the transferor. The 90-day

your spouse (that are required to be listed,

interest in a closely held entity, provide the

rule applies to transfers occurring on or

as described earlier), to your children, and

EIN of the entity.

after July 18, 2005. See Regulations

to charitable organizations are not subject

section 26.2651-1(a)(2)(iii) for more

to the GST tax and should, therefore, be

information.

For life insurance policies, give the

listed only in Part 1.

name of the insurer and the policy

number.

Examples

Group the gifts in four categories.

Gifts made to your spouse.

The GST rules can be illustrated by the

Gifts made to third parties that are to be

Clearly identify in the description

following examples.

split with your spouse.

column which gifts create the opening of

Example 1. You give your house to

Charitable gifts (if you are not splitting

an ETIP as described under Transfers

your daughter for her life with the

gifts with your spouse).

Subject to an Estate Tax Inclusion Period

remainder then passing to her children.

Other gifts.

(ETIP). Describe the interest that is

This gift is made to a “trust” even though

If a transfer results in gifts to two or more

creating the ETIP. An allocation of GST

there is no explicit trust instrument. The

individuals (such as a life estate to one

exemption to property subject to an ETIP

interest in the property transferred (the

with remainder to the other), list the gift to

that is made prior to the close of the ETIP

present right to use the house) is

each separately.

becomes effective no earlier than the date

transferred to a nonskip person (your

of the close of the ETIP. See Schedule D.

daughter). Therefore, the trust is not a skip

Number and describe all gifts

Computation of GST Tax, later.

person because there is an interest in the

(including charitable, public, and similar

transferred property that is held by a

gifts) in the columns provided in

Column D. Donor's Adjusted Basis

nonskip person, and the gift is not a direct

Schedule A.

of Gifts

skip. The transfer is an indirect skip,

however, because on the death of the

Show the basis you would use for income

Column B

daughter, a termination of her interest in

tax purposes if the gift were sold or

Describe each gift in enough detail so that

the trust will occur that may be subject to

exchanged. Generally, this means cost

the property can be easily identified, as

the GST tax. See the instructions for Part

plus improvements, less applicable

explained below.

3—Indirect Skips for a discussion of how

depreciation, amortization, and depletion.

to allocate GST exemption to such a trust.

For real estate, give:

Example 2. You give $100,000 to your

For more information on adjusted

A legal description of each parcel;

grandchild. This gift is a direct skip that is

basis, see Pub. 551, Basis of Assets.

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Instructions For Form 709 - United States Gift (And Generation-Skipping Transfer) Tax Return - 2017 Page 9

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