Instructions For Form 706-Gs(D-1) - 2016 (Page 3 of 5) in pdf

Signature

between the transferor and the

This rule is also applied to your lineal

descendant is determined by

descendants below the level of

The trustee, or an authorized

subtracting the number of generations

grandchild. For example, if your

representative of the trustee, must sign

between the grandparent and the

grandchild is deceased, your

Form 706-GS(D-1).

spouse (or former spouse) from the

great-grandchildren who are lineal

If someone prepares your return and

number of generations between the

descendants of the deceased

does not charge you, that person should

grandparent and the descendant.

grandchild are considered your

not sign the return. Generally, anyone

grandchildren for purposes of the GST

3. For this purpose, a relationship

who is paid to prepare your return must

tax.

by adoption is considered a blood

sign it in the space indicated.

relationship. A relationship by half-blood

This rule also governs generation

is considered a relationship by whole

assignment for other lineal

Specific Instructions

blood.

descendants. For example, if property is

transferred to an individual who is a

4. The spouse or former spouse of a

Part I—General

descendant of a parent of the transferor,

transferor or lineal descendant is

and that individual's parent (who is a

Information

considered to belong to the same

lineal descendant of the parent of the

generation as the transferor or lineal

transferor) is deceased at the time the

Line 1a. Skip Person

descendant, as the case may be.

transfer is subject to gift or estate tax,

Distributee's Identifying

A person who is not assigned to a

then for purposes of generation

Number

generation according to the rules above

assignment, the individual is treated as

is assigned to a generation based on his

Enter the social security number of an

if he or she is a member of the

or her birth date as follows.

individual distributee. (If the number is

generation that is one generation below

unknown or the individual has no

the lower of:

1. A person who was born not more

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

The transferor's generation or

than 12

years after the transferor is in

If the distributee is a trust, enter the

The generation assignment of the

the transferor's generation.

trust's employer identification number

youngest living ancestor of the

2. A person born more than 12

(EIN).

individual, who is also a descendant of

years, but not more than 37

years,

the parent of the transferor.

after the transferor is in the first

Line 2a. Trust's Employer

The same rules apply to the

generation younger than the transferor.

Identification Number

generation assignment of any

3. Similar rules apply for a new

Enter the EIN of the trust from which the

descendant of the individual.

generation every 25 years.

distribution was made.

This rule does not apply to a transfer

If more than one of the rules for

A nonexplicit trust as described

to an individual who is not a lineal

assigning generations applies to a

under Who Must File must have an EIN

descendant of the transferor if the

beneficiary, the beneficiary is generally

that is separate from any other entity's

transferor has any living lineal

assigned to the youngest of the

EIN and that will be used only by the

descendants.

generations that apply.

nonexplicit trust.

If any transfer of property to a trust

If an entity such as a partnership,

would have been a direct skip except for

A trust or nonexplicit trust that does

corporation, trust, or estate has an

this generation assignment rule, then

not have an EIN should apply for one on

interest in the property, each individual

the rule also applies to transfers from

Form SS-4, Application for Employer

who has a beneficial interest in the

the trust attributable to such property.

Identification Number. You can get

entity is treated as having an interest in

Form SS-4, and other IRS tax forms and

Ninety-day rule. For purposes of

the property. The individual is then

publications, by visiting IRS.gov.

determining if an individual's parent is

assigned to a generation using the rules

deceased at the time of a testamentary

Send Form SS-4 to the address

described above.

transfer, an individual's parent who dies

listed under Where To File. If the EIN

Governmental entities and certain

no later than ninety days after a transfer

has not been received by the filing time

charitable organizations are assigned to

occurring by reason of the death of the

for the GST form, write “Applied for” on

the transferor's generation. Distributions

transferor is treated as having

line 2a.

to them will never be

predeceased the transferor. The

generation-skipping transfers.

Part II—Distributions

ninety-day rule applies to transfers

Generation assignment where inter-

occurring on or after July 18, 2005. See

Report all taxable distributions made

vening parent is deceased. If you

Regulations section 26.2651-1 for more

during the year from the trust listed on

made a gift or bequest to your

information.

line 2 to the skip person distributee

grandchild and at the time you made the

listed on line 1. Report a distribution

Multiple skips. If after a

gift or bequest, the grandchild's parent

even if its inclusion ratio is zero.

generation-skipping transfer the

(who is your or your spouse's or your

property transferred is held in trust, then

Column a. Item no.

former spouse's child) is deceased,

for the purpose of determining the

then for purposes of generation

Assign consecutive numbers to each

taxability of subsequent distributions

assignment, your grandchild will be

distribution made during the year.

from the trust involving that property, the

considered to be your child rather than

Different items of property having

settlor of the property is assigned to the

your grandchild. Your grandchild's

different inclusion ratios must be listed

first generation above the highest

children will be treated as your

separately in Part II. Include under a

generation of any person who has an

grandchildren rather than your

single item number any properties

interest in the trust immediately after the

great-grandchildren.

having the same inclusion ratio even if

initial transfer.

they were distributed at different times.

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Instructions For Form 706-Gs(D-1) - 2016 Page 3

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