Instructions For Form 706-Gs(D-1)- Notification Of Distribution From A Generation-Skipping Trust Page 4
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5single item number any properties
All distributions, or any part of a single
increases if they otherwise qualify under
having the same inclusion ratio even if
distribution, that have different inclusion
the existing rules for late allocations. For
they were distributed at different times.
ratios must be listed as separate items
more information, see section 2632 and
An exception to this is distributions from
in column a.
Multiple transfers into a trust, later.
“separate trusts” as that term was
Once made, allocations are
The inclusion ratio is the excess of 1
defined earlier. You must report
irrevocable.
over the applicable fraction determined
distributions from such separate trusts
for the trust from which the distribution
Allocation of the GST exemption is
under different item numbers even if
was made.
made by the settlor on Form 709, United
they have the same inclusion ratio.
States Gift (and Generation-Skipping
Applicable fraction. The applicable
Column b. Description of
Transfer) Tax Return, and/or Form 706,
fraction is a fraction, the numerator of
United States Estate (and
Property
which is the amount of the GST
Generation-Skipping Transfer) Tax
exemption allocated to the trust. The
Real estate. Describe the real estate in
Return, by the executor of the settlor's
denominator of the fraction is:
enough detail so that the IRS can easily
estate. Therefore, you should obtain
locate it for inspection and valuation.
1. The value of the property
information regarding the allocation of
transferred to the trust, minus
For each parcel of real estate, report the
the exemption to this trust from the
location and, if the parcel is improved,
2. The sum of:
settlor or the executor of the settlor's
describe the improvements. For city or
estate, as applicable.
a. Any federal estate tax or state
town property, report the street number,
death tax actually recovered from the
If the settlor's entire GST exemption
ward, subdivision, block and lot, etc. For
trust attributable to the property and
is not allocated by the due date
rural property, report the township,
(including extensions) of the settlor's
b. Any charitable deduction allowed
range, landmarks, etc.
estate tax return, the exemption is
under section 2055 or 2522 with respect
Stocks and bonds. For stocks, give:
automatically allocated under the rules
to the property.
Number of shares;
of section 2632.
Round the applicable fraction to at
Whether common or preferred;
Transfers subject to an estate tax in-
least the nearest one-thousandth (for
Issue;
clusion period. If a transferor made an
example, “0.001”).
Par value where needed for
inter vivos transfer, and the property
valuation;
Numerator (GST exemption). Every
transferred would have been includible
Price per share;
individual settlor is allowed a lifetime
in the transferor's estate if he or she had
Exact name of corporation;
GST exemption to be allocated against
died immediately after the transfer
Principal exchange upon which sold,
property that the individual has
(other than by reason of the transferor
if listed on an exchange; and
transferred. For generation-skipping
dying within 3 years of making the gift),
CUSIP number.
transfers made through 1998, the
for purposes of determining the
For bonds, give:
exemption was $1 million. The GST
inclusion ratio, an allocation of GST
Quantity and denomination;
exemption amounts for 1999 through
exemption will only become effective at
Name of obligor;
2017 are as follows:
the close of the estate tax inclusion
Date of maturity;
period (ETIP).
Interest rate;
Year
Amount
The value of the property for the
Interest due date;
1999
$1,010,000
. . . . . . . . . . . . . .
purpose of figuring the inclusion ratio is
Principal exchange, if listed on an
2000
$1,030,000
. . . . . . . . . . . . . .
the estate tax value if the property is
exchange; and
2001
$1,060,000
. . . . . . . . . . . . . .
included in the transferor's gross estate,
CUSIP number.
2002
$1,100,000
. . . . . . . . . . . . . .
or its value at the close of the ETIP.
2003
$1,120,000
If the stock or bond is unlisted, show
. . . . . . . . . . . . . .
The ETIP closes at the earliest of:
2004 and 2005
$1,500,000
the company's principal business office.
. . . . . . . .
1. The time the transferred property
2006–2008
$2,000,000
. . . . . . . . . .
The CUSIP (Committee on Uniform
would no longer be includible in the
2009
$3,500,000
. . . . . . . . . . . . . .
Security Identification Procedure)
settlor's estate,
2010 and 2011
$5,000,000
. . . . . . . .
number is a nine-digit number that is
2012
$5,120,000
2. The date of a generation-
. . . . . . . . . . . . . .
assigned to all stocks and bonds traded
2013
$5,250,000
skipping transfer of the property, or
. . . . . . . . . . . . . .
on major exchanges and many unlisted
2014
$5,340,000
. . . . . . . . . . . . . .
securities. Usually the CUSIP number is
3. The date of death of the settlor.
2015
$5,430,000
. . . . . . . . . . . . . .
printed on the face of the stock
2016
$5,450,000
. . . . . . . . . . . . . .
Denominator (valuation of trust as-
certificate. If the CUSIP number is not
2017
$5,490,000
sets). In general, the value to be used
. . . . . . . . . . . . . .
printed on the certificate, it may be
in the applicable fraction is the gift tax
obtained through the company's
value for an inter vivos transfer as long
transfer agent.
A valid Deceased Spousal
as the allocation of the GST exemption
Other personal property. Any
Unused Exclusion Amount
!
was made on a timely filed gift tax
personal property distributed must be
(“DSUE ” or portability) election
return. The value of a testamentary
CAUTION
described in enough detail that the IRS
by an executor of a deceased spouse's
transfer is generally the estate tax value.
can value it.
estate does not apply to or impact GST
If the allocation of the exemption to
tax exemption.
Column d. Inclusion Ratio
an inter vivos transfer, made before
Note. The trustee must provide the
January 1, 2001, is not made on a
For existing trusts, transferors may
inclusion ratio for every distribution.
timely filed gift tax return, the value for
allocate the additional GST exemption
purposes of the applicable fraction is
amount attributable to section 2631(c)
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