If the skip person distributee is a trust, enter the name of the trust here.

For skip person distributees who are individuals, enter the distributee's social security number (SSN) here and leave line 1c blank. If the skip person distributee is a trust, see the instructions for line 1c. Do not enter a number on both line 1b and line 1c.

If the skip person distributee is a trust, enter the trust's employer identification number (EIN) and leave line 1b blank. Do not enter a number on both line 1b and line 1c.

If the skip person distributee is a trust, enter the trustee's name here. If the skip person distributee is a minor or is under some disability that precludes the individual from filing the return, enter the name of the person who is legally responsible for conducting the affairs of the distributee, such as a parent or guardian. Also, include the title or relationship to the distributee.

Enter the address at which you wish to receive correspondence from the IRS regarding this return. If there is an entry on line 2a, the address entered here will normally be that of the person listed on line 2a, rather than the individual or trust listed on line 1a.

In column b, use the same item number that was used for the corresponding distribution on Form 706-GS(D-1). If you receive distributions from more than one trust, you may need to repeat item numbers.

There may be instances when the trustee has either not completed columns e (value) and f (tentative transfer) of Form 706-GS(D-1) or when you disagree with the amounts the trustee entered. If this occurs, attach a statement to this return showing what you think are the correct amounts and how you
figured them.

To figure the tentative transfer (col. c of this form), multiply the applicable inclusion ratio from Part II, col. d, of Form 706-GS(D-1) by the value of the distribution. Use the following guidelines to determine the value of the distribution. See the instructions for Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, for more information. You can get Form 706, and other IRS forms and publications, by calling 1-800-TAX-FORM (1-800-829-3676) or by accessing the IRS website at www.irs.gov.

You must determine the value of the property distributed as of the date of the distribution. The date of distribution is listed in Part II, column c, of Form 706-GS(D-1).

The value of a distribution is its fair market value on the date of distribution. Fair market value is the price at which the property would change hands between a willing buyer and a willing seller, when neither is forced to buy or to sell, and both have reasonable knowledge of all the relevant facts. Fair market value may not be determined by a forced sale price, nor by the sale price of the item in a market other than that in which the item is most commonly sold to the public. The location of the item must be taken into account whenever appropriate.

Reduce the value of any property being reported in Part II by the amount of any consideration provided by the distributee.

Stock of close corporations or inactive stock must be valued on the basis of net worth, earnings, earning and dividend capacity, and other relevant factors. For such stock, attach balance sheets, particularly the one nearest the date of the distribution, and statements of net earnings or operating results and dividends paid for each of the 5 preceding years.

Reduce the reported value of real estate by the amount of any outstanding lien against the property on the date of distribution. Attach copies of any such liens. Explain how the reported values were determined and attach copies of any appraisals.

You may deduct from the amount of the distribution you received any adjusted allowable expenses incurred in connection with the preparation of this Form 706-GS(D) or any other expenses incurred in connection with the determination, collection, or refund of the GST tax reported or which should have been reported on this return.

Adjusted allowable expenses are equal to the total allowable expenses multiplied by the inclusion ratio. If you have more than one inclusion ratio in Part II, column d, of Form 706-GS(D-1), prorate the total expense among the inclusion ratios based on the relative value of each distribution made at the various inclusion ratios.

You may deduct an expense even though it has not been paid at the time the return is filed as long as the amount of the expense is clearly ascertainable at that time. If an additional allowable expense is incurred after the return is filed, file Form 843, Claim for Refund and Request for Abatement, to claim
a refund.

Example.

The following example illustrates the rules above.

You listed three distributions in Part II of Form 706-GS(D). The value of the first distribution is $10,000 and has an inclusion ratio of .25. The value of the second distribution is $20,000 and has an inclusion ratio of .33. The value of the third distribution is $30,000 and has an inclusion ratio of .50. You received the completed return from the preparer along with the bill for the preparer's fee on April 14 and filed the return on April 15. You paid the preparer's $200 fee on April 20. The adjusted allowable expense you should report on line 4 of Part III is $80, calculated
as follows.

3 FORMULAS

Enter, using the table below, the maximum federal estate tax rate in effect at the time the generation-skipping distribution occurred.

Make your check payable to the “United States Treasury.” Please write your SSN (or EIN), the year, and “Form 706-GS(D)” on the check to assist us in posting it to the proper account. Enclose, but do not attach, the payment with Form 706-GS(D).