Instructions For Form 706-Gs(T) - 2016 (Page 4 of 8) in pdf

Schedule A (Lines 1–4)

the trust within 6 months after the

Specific Instructions

termination is valued on the date of

Note. If you need more than one

distribution or other disposition. Value

Complete Form 706-GS(T) in the

Schedule A, make copies before

the property on the date it ceases to

following order: Parts I and II,

completing it. Also, make a copy of

form a part of the trust; that is, on the

Schedule A (through line 4),

Schedule B for each Schedule A you

date the title passes as a result of its

Schedule B, Schedule A (lines 5

will file. If you need additional space to

distribution or other disposition.

through 10), Part III.

provide all the required information for

2. Any property not distributed or

any given schedule, attach a separate

otherwise disposed of within 6 months

Part I—General

sheet of the same size to that schedule.

following the termination is valued on

Information

Combine on a single Schedule A all

the date 6 months after the termination.

terminations from a single trust that

3. Any property or interest that is

Line 1b. Trust's Employer

have the same inclusion ratio (as

affected by mere lapse of time is valued

Identification Number

discussed later). However, you must

as of the time of termination. However,

complete a separate Schedule A for

All trusts filing Form 706-GS(T) must

you may change this date of termination

each terminating interest that has a

have an employer identification number

value to the value as of the date of

different inclusion ratio. Number each

(EIN). A nonexplicit trust, defined

distribution or other disposition to

Schedule A consecutively in the space

above, must have an EIN that is

account for any change that is not due

provided at the top.

separate from any other entity's EIN and

to mere lapse of time.

that will be used only by the entity in its

Line 2

If the alternate valuation date falls

capacity as the nonexplicit trust.

For the purposes of line 2, termination

after the initial due date of the return,

means the conclusion (for example, by

you must request an extension to file on

A trust or nonexplicit trust that does

death, lapse of time, or release of

Form 7004. The extension is automatic,

not have an EIN should apply for one on

power, etc.) of an interest in property

so you do not have to sign the form or

Form SS-4, Application for Employer

held in trust unless:

provide a reason for your request. See

Identification Number. You can get

Immediately after the termination, a

Form 7004 for more information.

Form SS-4, and other IRS tax forms and

non-skip person has an interest in such

publications, by visiting IRS.gov.

Line 4

property or

At no time after the termination is it

Send Form SS-4 to the address

Terminations of interests in trusts to

possible for a distribution (including

listed under Where To File. If you do not

which additions have been made.

distributions on termination) to be made

receive the EIN by the due date for the

As described earlier, when an addition

from the trust to a skip person.

706-GS(T), write “Applied for” on

is made to an irrevocable trust after

line 1b.

September 25, 1985, only the portion of

Also, if you are reporting separate

the trust resulting from the addition is

trusts, defined above, on this Form

You can also apply for an EIN at

subject to the GST tax. For terminations,

706-GS(T), explain why you are treating

this portion is the product of the

parts of the trust as separate trusts.

allocation fraction and the value of the

Part II—Trust Information

Line 3

property subject to the termination

You may elect alternate valuation under

(including accumulated income and

Line 4

section 2032 for all terminations in the

appreciation on that property).

Whenever property is transferred into a

same trust that occurred at the same

The allocation fraction is a fraction,

pre-existing trust, the inclusion ratio

time as and as a result of the death of

the numerator of which is the value of

must be refigured. See Multiple

an individual. If you elect alternate

the addition as of the date it was made

transfers, later, for the rule on how to

valuation, you must use it to value all

(regardless of whether it was subject to

refigure the inclusion ratio.

property included in those terminations.

gift or estate tax). The denominator of

Line 7

the fraction is the fair market value of

You may not elect alternate valuation

the entire trust immediately after the

If a qualified terminable interest property

unless the election will decrease both

addition, less any amount of expenses,

the total value of the property interests

deduction was taken by the settlor as

indebtedness, or taxes that would be

that were subject to the termination and

donor spouse or by the executor of a

allowable as a deduction under section

the total net GST tax due after the

deceased settlor's estate for the transfer

2053.

allowable credit.

of any property into this trust, the donor

spouse or the executor, as the case

When there is more than one

Check the box on line 3 of all the

may be, may have made an election at

addition, the allocation fraction must be

applicable Schedules A if you elect

that time to treat such transfer for the

revised after each addition. The

alternate valuation. Once made, the

purpose of the GST tax as if it was not

numerator of the revised fraction is the

election cannot be revoked. You may

qualified terminable interest property. In

sum of:

make the election on a late filed Form

this case, you must refer to the gift tax

The value of the portion of the trust

706-GS(T), provided it is not filed later

return (Form 709, United States Gift

subject to the GST tax immediately

than 1 year after the due date (including

(and Generation-Skipping Transfer) Tax

before the last addition, and

extensions).

Return) of the donor spouse or the

The amount of the latest addition.

If you elect alternate valuation, value

deceased settlor's estate tax return

The denominator of the revised

the property interest that has been

(Form 706, United States Estate (and

fraction is the total value of the entire

terminated as follows:

Generation-Skipping Transfer) Tax

trust immediately after the latest

Return) for the information needed to

1. Any property distributed or

addition.

figure the inclusion ratio.

otherwise disposed of or separated from

-4-

Instructions For Form 706-Gs(T) - 2016 Page 4

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