Instructions For Form 706-Gs(T) - 2016 printable pdf download

Instructions for Form

Department of the Treasury

Internal Revenue Service

706-GS(T)

(Rev. November 2016)

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

published, go to

A termination may occur by reason of

information.

form706gst.

death, lapse of time, release of a power,

or any other means.

Where To File

What's New

In general, all taxable terminations

File Form 706-GS(T) at the following

For federal tax purposes, marriages of

are subject to the GST tax. A taxable

address:

couples of the same sex are treated the

termination is the conclusion of an

same as marriages of couples of the

interest in property held in trust unless:

Department of the Treasury

opposite sex. The term “spouse”

Immediately after the termination, a

Internal Revenue Service

includes an individual married to a

non-skip person has an interest in the

Cincinnati, OH 45999

person of the same sex. However,

property or

individuals who have entered into a

At no time after the termination may a

Trusts

registered domestic partnership, civil

distribution be made from the trust to a

union, or other similar relationship that

Nonexplicit trusts. An arrangement

skip person.

isn’t considered a marriage under state

that has substantially the same effect as

Exceptions

law aren’t considered married for

a trust will be treated as a trust even

federal tax purposes. If you believe the

though it is not an explicit trust.

Irrevocable trusts. Except as

new law may affect your estate or gift

Examples of such arrangements are

described under Additions to

tax liability or filing requirement, please

insurance and annuity contracts,

irrevocable trusts below, the GST tax

continue to monitor

IRS.gov

for

arrangements involving life estates and

does not apply to any termination of an

additional guidance.

remainders, and estates for years.

interest in a trust that was irrevocable on

September 25, 1985. Any trust in

In general, a transfer of property in

General Instructions

existence on September 25, 1985, will

which the identity of the transferee is

be considered irrevocable unless:

conditioned on the occurrence of an

Purpose of Form

event is a transfer in trust. This rule

1. On September 25, 1985, the

does not apply to a testamentary trust,

settlor held a power with respect to such

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

however, if the event is to occur within 6

trust that would have caused the value

figure and report the tax due from

months of the transferor's date of death.

of the trust to be included in the settlor's

certain trust terminations that are

gross estate for federal estate tax

Nonexplicit trusts do not include

subject to the generation-skipping

purposes by reason of section 2038

decedents' estates.

transfer (GST) tax.

(regarding revocable transfers) if the

In the case of a nonexplicit trust, the

Who Must File

settlor had died on September 25, 1985;

person in actual or constructive

possession of the property involved is

In general, the trustee of any trust that

2. Regarding a policy of life

considered the trustee and is liable for

has a taxable termination (defined

insurance that is treated as a trust under

filing Form 706-GS(T).

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

section 2652(b), the insured possessed

tax year in which the termination

If you are filing this return for a

an incident of ownership on September

occurred.

nonexplicit trust, see the instructions for

25, 1985, that would have caused the

line 1b.

When To File

insurance proceeds to be included in

Separate trusts. You must treat as

the insured's gross estate for federal

Generally, the trustee must file Form

separate trusts:

estate tax purposes if the insured had

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

Portions of a trust that are attributable

died on September 25, 1985.

following the calendar year in which the

to transfers from different transferors

termination occurs. If the due date falls

For more information, see

and

on a Saturday, Sunday, or legal holiday,

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

Substantially separate and

file on the next business day.

(ii).

independent shares of different

beneficiaries in a trust.

If you are not able to file the return by

Trusts containing qualified termina-

the due date, you may request an

ble interest property. Irrevocable

extension of time to file by filing Form

trusts in existence on September 25,

Oct 25, 2016

Cat. No. 10829R

Instructions For Form 706-Gs(T) - 2016

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