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Gifts to Donees Other Than

D makes no gifts in 2012, 2013 or

determine whether to enter the gift on

2014. She is not required to file Form 709

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

Your Spouse

in any of those years to report the

Spouses who are not U.S. citizens. If

You must always enter all gifts of future

one-fifth portion of the QTP gift, because

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

interests that you made during the

she is not otherwise required to file Form

gave him or her a gift of a future interest,

calendar year regardless of their value.

709.

you must report on Schedule A all gifts to

No gift splitting. If the total gifts of

your spouse for the year. If all gifts to your

You make the election by checking the

present interests to any donee are more

spouse were present interests, do not

box on line B at the top of Schedule A.

than $13,000 in the calendar year, then

report on Schedule A any gifts to your

The election must be made for the

you must enter all such gifts that you

spouse if the total of such gifts for the

calendar year in which the contribution is

made during the year to or on behalf of

year does not exceed $134,000 and all

made. Also attach an explanation that

that donee, including those gifts that will

gifts in excess of $13,000 would qualify

includes the following:

be excluded under the annual exclusion.

for a marital deduction if your spouse

•

If the total is $13,000 or less, you need

The total amount contributed per

were a U.S. citizen (see the instructions

not enter on Schedule A any gifts (except

individual beneficiary,

for Schedule A, Part 4, line 4). If the gifts

•

gifts of future interests) that you made to

The amount for which the election is

exceed $134,000, you must report all of

that donee. Enter these gifts in the top

being made, and

the gifts even though some may be

•

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

The name of the individual for whom

excluded.

the contribution was made.

Gift splitting elected. Enter on

Gifts Subject to Both Gift

Schedule A the entire value of every gift

If you are electing gift splitting, apply

you made during the calendar year while

and GST Taxes

the gift-splitting rules before applying

you were married, even if the gift’s value

these rules. Each spouse would then

will be less than $13,000 after it is split in

Definitions

decide individually whether to make this

Column G of Part 1, 2, or 3 of Schedule

QTP election.

Direct skip. The GST tax you must

report on Form 709 is that imposed only

Gifts made by spouse. If you elected

Contributions to QTPs do not

on inter vivos direct skips. An “inter vivos

gift splitting and your spouse made gifts,

qualify for the education exclusion.

direct skip” is a transfer that is:

list those gifts in the space below “Gifts

•

Subject to the gift tax,

CAUTION

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

•

Of an interest in property, and

these gifts in the same way you report

How To Complete Parts 1, 2,

•

Made to a skip person.

gifts you made.

and 3

All three requirements must be met

Gifts to Your Spouse

before the gift is subject to the GST tax.

After you determine which gifts you made

Except for the gifts described below, you

in 2010 that are subject to the gift tax, list

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

do not need to enter any of your gifts to

them on Schedule A. You must divide

are required to list it on Schedule A of

your spouse on Schedule A.

these gifts between:

Form 709. However, if you make a

nontaxable gift (which is a direct skip) to a

Terminable interest. Terminable

1. Part 1 — those subject only to the

trust for the benefit of an individual, this

interests are defined in the instructions to

gift tax (gifts made to nonskip persons

transfer is subject to the GST tax unless:

Part 4, line 4 . If all the terminable

— see Part 1 — Gifts Subject Only to Gift

interests you gave to your spouse qualify

Tax ),

1. During the lifetime of the

as life estates with power of appointment

beneficiary, no corpus or income may be

2. Part 2 — those subject to both the

(defined under Life estate with power of

distributed to anyone other than the

gift and GST taxes (gifts made to skip

appointment), you do not need to enter

beneficiary and

persons — see Gifts Subject to Both Gift

any of them on Schedule A.

2. If the beneficiary dies before the

and GST Taxes and Part 2 — Direct

termination of the trust, the assets of the

Skips ), and

However, if you gave your spouse any

trust will be included in the gross estate of

3. Part 3 — those subject only to the

terminable interest that does not qualify

the beneficiary.

gift tax at this time but which could later

as a life estate with power of

be subject to GST tax (gifts that are

appointment, you must report on

Note. If the property transferred in the

indirect skips, see Part 3 — Indirect

Schedule A all gifts of terminable interests

direct skip would have been includible in

Skips).

you made to your spouse during the year.

the donor’s estate if the donor died

Charitable remainder trusts. If you

immediately after the transfer, see

If you need more space, attach a

make a gift to a charitable remainder trust

Transfers Subject to an Estate Tax

separate sheet using the same format as

and your spouse is the only noncharitable

Inclusion Period (ETIP).

Schedule A.

beneficiary (other than yourself), the

To determine if a gift “is of an interest

interest you gave to your spouse is not

in property” and “is made to a skip

considered a terminable interest and,

Use the following guidelines when

person,” you must first determine if the

therefore, should not be shown on

entering gifts on Schedule A:

TIP

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

Schedule A. See section 2523(g)(1). For

defined below.

•

definitions and rules concerning these

Enter a gift only once — in Part 1, Part

trusts, see section 2056(b)(8)(B).

Trust. For purposes of the GST tax, a

2, or Part 3;

•

trust includes not only an explicit trust, but

Do not enter any gift or part of a gift

Future interest. Generally, you should

also any other arrangement (other than

that qualified for the political organization,

not report a gift of a future interest to your

an estate) that although not explicitly a

educational, or medical exclusion;

spouse unless the future interest is also a

•

trust, has substantially the same effect as

Enter gifts under “Gifts made by

terminable interest that is required to be

a trust. For example, a trust includes life

spouse” only if you have chosen to split

reported as described above. However, if

estates with remainders, terms for years,

gifts with your spouse and your spouse is

you gave a gift of a future interest to your

and insurance and annuity contracts. A

required to file a Form 709 (see Part

spouse and you are required to report the

transfer of property that is conditional on

1 — General Information, Lines 12 – 18.

gift on Form 709 because you gave the

the occurrence of an event is a transfer in

Split Gifts ); and

present interest to a donee other than

trust.

•

In column F, enter the full value of the

your spouse, then you should enter the

Interest in property. If a gift is made to

gift (including those made by your

entire gift, including the future interest

spouse, if applicable). If you have chosen

given to your spouse, on Schedule A. You

a natural person, it is always considered a

to split gifts, that one-half portion of the

should use the rules under Gifts Subject

gift of an interest in property for purposes

gift is entered in column G.

to Both Gift and GST Taxes, below, to

of the GST tax.

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Instructions For Form 709 - United States Gift (And Generation-Skipping Transfer) Tax Return - 2010 Page 6

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