Instructions For Form 706-Gs(D-1) - 2016
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5Instructions for
Department of the Treasury
Internal Revenue Service
Form 706-GS(D-1)
(Rev. November 2016)
Use with the October 2008 revision of Form 706-GS(D-1)
Notification of Distribution From a Generation-Skipping Trust
Where To File
distribution is any distribution from a
Section references are to the Internal Revenue
Code unless otherwise noted.
trust to a skip person (other than a
The trustee must send Copy A of Form
taxable termination or a direct skip).
Future Developments
706-GS(D-1) to the following address:
If any GST tax imposed on a
For the latest information about
Department of the Treasury
distribution is paid out of the trust from
developments related to Form
Internal Revenue Service
which the distribution was made, the
706-GS(D-1) and its instructions, such
Cincinnati, OH 45999
amount of tax paid by the trust is also a
as legislation enacted after they were
taxable distribution.
published, go to
Trusts
About-Form-706-GS(D-1).
A distribution is not considered a
Nonexplicit trusts. An arrangement
taxable distribution if, had it been made
General Instructions
that has substantially the same effect as
while an individual was alive, it would
a trust will be treated as a trust even
have been a nontaxable gift because of
though it is not an explicit trust.
Purpose of Form
section 2503(e) (relating to transfers
Examples of such arrangements are
made for certain educational or medical
A trustee uses Form 706-GS(D-1) to
insurance and annuity contracts,
expenses).
report certain distributions from a trust
arrangements involving life estates and
that are subject to the generation-
remainders, and estates for years.
Also, a distribution (or any portion
skipping transfer (GST) tax and to
thereof) is not a taxable distribution to
In general, a transfer of property in
provide the skip person distributee with
the extent that:
which the identity of the transferee is
information needed to figure the tax due
The property distributed was
conditioned on the occurrence of an
on the distribution.
previously subject to GST tax and
event is a transfer in trust. However, this
The distributee in the prior distribution
rule does not apply to a testamentary
Who Must File
is assigned to a generation the same as
trust if the event is to occur within 6
In general, the trustee of any trust that
or lower than the distributee in the
months of the transferor's date of death.
makes a taxable distribution must file a
current distribution.
Nonexplicit trusts do not include
Form 706-GS(D-1) for each skip
decedents' estates.
person. See Distributions Subject to
This rule does not apply if the
In the case of a nonexplicit trust, the
GST Tax, later, for a discussion of what
transfers have the effect of avoiding
person in actual or constructive
constitutes a taxable distribution. The
GST tax for any transfer.
possession of the property involved is
trustee must file a return for each skip
Exceptions
considered the trustee and is liable for
person even if the inclusion ratio
filing Form 706-GS(D-1).
applicable to the distribution is zero.
Irrevocable trusts. The GST tax does
See Column d. Inclusion Ratio.
not apply to any distribution from a trust
If you are filing this return for a
that was irrevocable on September 25,
nonexplicit trust, see Line 2a. Trust's
When To File
1985. Any trust in existence on
Employer Identification Number.
September 25, 1985, will be considered
The trustee must file Copy A of Form
Separate trusts. You must treat the
irrevocable unless:
706-GS(D-1) with the IRS and send
following as separate trusts:
On September 25, 1985, the value of
Copy B to the distributee by April 15th of
Portions of a trust that are attributable
the trust could have been included in
the year following the calendar year
to transfers from different transferors
the settlor's gross estate for federal
when the distribution was made. If the
and
estate tax purposes by reason of
due date falls on a Saturday, Sunday, or
Substantially separate and
section 2038 if the settlor had died on
legal holiday, file on the next business
independent shares of different
September 25, 1985, or
day.
beneficiaries in a trust.
Regarding a policy of life insurance
For 2017, the traditional April 15 due
You must report such separate trusts
that is treated as a trust under section
date for filing tax returns is extended to
under different item numbers in column
2652(b), the insured was an owner on
April 18 as Emancipation Day is
a of line 3, even if they have the same
September 25, 1985, and this would
observed in the District of Columbia on
inclusion ratios.
have caused the insurance proceeds to
Monday April 17. The due date is
be included in the insured's gross estate
Distributions Subject to
extended even if you do not live in the
for federal estate tax purposes if the
District of Columbia.
GST Tax
insured had died on September 25,
1985.
In general, all taxable distributions are
For more information, see
subject to the GST tax. A taxable
Regulations section 26.2601-1(b).
Jun 09, 2016
Cat. No. 10926L
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