How do I fill out a 706-GST where no tax is due, but grandchildren received mone
I need to file 2 706 GSTs...here is data
Person 1. Total estate on death was 600,000, with 150,000 going directly to daughter from items owned jointly. The remainder, which was held in a trust, went 250,000 to children, 150,000 to grandchildren. How do I fill out the 706-GST?
Person 2. Total estate on death was 500,000, with 100,000 going directly to daughter via joint accounts. Remainder went into a trust for benefit of spouse, with stipulation on spouses death of how to distribute. When spouse died, trust was worth 350,000 (loss in stocks), and 100,000 went to grandchildren, 250,000 to children.
I do not follow ''allocation ratio'' and much of 706-GST. Can you tell me how to fill that form out for these two cases?
1 Answer from Attorneys
Re: How do I fill out a 706-GST where no tax is due, but grandchildren received
The allocation ratio does not apply to you. If the amount passing from the decedent were greater than the generation skipping tax exemption ($1,000,000), you would need to allocate the generation skipping tax exemption among the various bequests. Unless there were lifetime gifts subject to the generation skipping tax, in your case the entire estate will be within the generation skipping tax exemption. So, there is no need to allocate, although there may be some manner in which this must be made clear on the return.
I'm sorry I can't give more specific advice. I'm a planner and rarely get involved in completing tax returns. I hope my general answer clarifies the issue somewhat.
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