Instructions For Form 706-Gs(D-1)- Notification Of Distribution From A Generation-Skipping Trust (Page 3 of 5) in pdf

spouse (or former spouse) of the

grandchildren rather than your

interest in the trust immediately after the

transferor, the number of generations

great-grandchildren.

initial transfer.

between the transferor and the

This rule is also applied to your lineal

Signature

descendant is determined by

descendants below the level of

subtracting the number of generations

The trustee, or an authorized

grandchild. For example, if your

between the grandparent and the

representative of the trustee, must sign

grandchild is deceased, your

spouse (or former spouse) from the

Form 706-GS(D-1).

great-grandchildren who are lineal

number of generations between the

descendants of the deceased

If someone prepares your return and

grandparent and the descendant.

grandchild are considered your

does not charge you, that person should

3. For this purpose, a relationship

grandchildren for purposes of the GST

not sign the return. Generally, anyone

by adoption is considered a blood

tax.

who is paid to prepare your return must

relationship. A relationship by half-blood

This rule also governs generation

sign it in the space indicated.

is considered a relationship by whole

assignment for other lineal

blood.

descendants. For example, if property is

Specific Instructions

4. The spouse or former spouse of a

transferred to an individual who is a

transferor or lineal descendant is

descendant of a parent of the transferor,

Part I—General

considered to belong to the same

and that individual's parent (who is a

Information

generation as the transferor or lineal

lineal descendant of the parent of the

descendant, as the case may be.

transferor) is deceased at the time the

Line 1a. Skip Person

transfer is subject to gift or estate tax,

A person who is not assigned to a

Distributee's Identifying

then for purposes of generation

generation according to the rules above

assignment, the individual is treated as

Number

is assigned to a generation based on his

if he or she is a member of the

or her birth date as follows.

Enter the social security number of an

generation that is one generation below

individual distributee. (If the number is

1. A person who was born not more

the lower of:

unknown or the individual has no

than 12

years after the transferor is in

1 2

The transferor's generation or

number, indicate “unknown” or “none.”)

the transferor's generation.

The generation assignment of the

If the distributee is a trust, enter the

youngest living ancestor of the

2. A person born more than 12

1 2

trust's employer identification number

individual, who is also a descendant of

years, but not more than 37

years,

1 2

(EIN).

the parent of the transferor.

after the transferor is in the first

Line 2a. Trust's Employer

generation younger than the transferor.

The same rules apply to the

Identification Number

generation assignment of any

3. Similar rules apply for a new

descendant of the individual.

generation every 25 years.

Enter the EIN of the trust from which the

This rule does not apply to a transfer

distribution was made.

If more than one of the rules for

to an individual who is not a lineal

assigning generations applies to a

A nonexplicit trust as described

descendant of the transferor if the

beneficiary, the beneficiary is generally

under Who Must File must have an EIN

transferor has any living lineal

assigned to the youngest of the

that is separate from any other entity's

descendants.

generations that apply.

EIN and that will be used only by the

If any transfer of property to a trust

nonexplicit trust.

If an entity such as a partnership,

would have been a direct skip except for

corporation, trust, or estate has an

A trust or nonexplicit trust that does

this generation assignment rule, then

interest in the property, each individual

not have an EIN should apply for one on

the rule also applies to transfers from

who has a beneficial interest in the

Form SS-4, Application for Employer

the trust attributable to such property.

entity is treated as having an interest in

Identification Number. You can get

the property. The individual is then

Ninety-day rule. For purposes of

Form SS-4, and other IRS tax forms and

assigned to a generation using the rules

determining if an individual's parent is

publications, by visiting IRS.gov.

described above.

deceased at the time of a testamentary

Send Form SS-4 to the address

transfer, an individual's parent who dies

Governmental entities and certain

listed under Where To File. If the EIN

no later than ninety days after a transfer

charitable organizations are assigned to

has not been received by the filing time

occurring by reason of the death of the

the transferor's generation. Distributions

for the GST form, write “Applied for” on

transferor is treated as having

to them will never be

line 2a.

predeceased the transferor. The

generation-skipping transfers.

ninety-day rule applies to transfers

Part II—Distributions

Generation assignment where inter-

occurring on or after July 18, 2005. See

vening parent is deceased. If you

Regulations section 26.2651-1 for more

Report all taxable distributions made

made a gift or bequest to your

information.

during the year from the trust listed on

grandchild and at the time you made the

line 2 to the skip person distributee

Multiple skips. If after a

gift or bequest, the grandchild's parent

listed on line 1. Report a distribution

generation-skipping transfer the

(who is your or your spouse's or your

even if its inclusion ratio is zero.

property transferred is held in trust, then

former spouse's child) is deceased,

Column a. Item No.

for the purpose of determining the

then for purposes of generation

taxability of subsequent distributions

assignment, your grandchild will be

Assign consecutive numbers to each

from the trust involving that property, the

considered to be your child rather than

distribution made during the year.

settlor of the property is assigned to the

your grandchild. Your grandchild's

Different items of property having

first generation above the highest

children will be treated as your

different inclusion ratios must be listed

generation of any person who has an

separately in Part II. Include under a

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

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