Instructions for Form 706-GS(T) – Generation-Skipping Transfer Tax Return for Terminations

Last reviewed: 2025-10-26

Use the Instructions for Form 706-GS(T) Tax Form Calculator Instructions for Form 706-GS(T) as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 706gst Instructions state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

These instructions provide guidance for completing Form 706-GS(T), which must be filed by trustees when a trust undergoes a taxable termination. The guide outlines how to determine when a termination is taxable, how to prepare and attach Schedule A, and how to compute the Generation-Skipping Transfer (GST) tax due.

Key highlights from the instructions:

Who must file: Trustees of trusts where a termination results in all interests passing to skip persons.
What to include: A separate Schedule A must be completed for each skip person receiving a distribution. Each Schedule A reports the trust name, beneficiary, and taxable amount.
How to compute GST tax: The tax is calculated based on the inclusion ratio and applicable rate on the value transferred at termination.
When to file: The return is due by April 15 of the year following the taxable termination. Use Form 8892 to request an extension.

Instructions for Form 706-GS(T)
Year of Transfer			GST exemption
			$
			$
			$
			$
			$
			$
			$
			$
			$
			$
			$
			$
			$
			$
Table of Maximum Tax Rates
If the generation-skipping transfer occurred			The maximum tax rate is
After December 31, 2002, but before January 1, 2004			%
After December 31, 2003, but before January 1, 2005			%
After December 31, 2004, but before January 1, 2006			%
After December 31, 2005, but before January 1, 2007			%
After December 31, 2006, but before January 1, 2010			%
After December 31, 2009, but before January 1, 2011			%
After December 31, 2010, but before January 1, 2013			%
After December 31, 2012			%
Form	Recordkeeping	Learning about the law or the form		Preparing the form	Copying, assembling, and sending the form to the IRS
706-GS(T)	min.	min.		min.	min.
Schedule A	min.	min.		min.	min.
Schedule B	min.	min.		min.	min.

Additional guidance includes definitions of skip persons and skip parties, trust identification numbers, how to report partial terminations, and penalty information. Trustees must ensure that the fair market value (FMV) of assets is determined correctly, and that documentation supports allocation of GST exemption.

Last reviewed: 2025-10-26: If you believe this form requires an update, please contact us.

Accurate compliance with Form 706-GS(T) instructions is essential to avoid penalties. The form ensures that the IRS captures taxable trust distributions made across generations and that trustees fulfill tax obligations for transfers to younger beneficiaries. Use IRS Publication 559 for broader estate and GST context if needed.

Frequently Asked Questions

How do I adjust prior payroll filings?

Amend with 941-X or 944-X as applicable.

What types of federal tax does this calculator focus on?

This calculator focuses on core federal income tax calculations based on your income, filing status and applicable rules, without relying on assumptions from other tools.

Can I jump to state-specific tax tools?

Browse state calculators from the popular calculators hub (state list included).

Can I itemize instead of the standard deduction?

Run Schedule A to compare itemizing vs standard.

What if I received a large gift or plan gifting?

See Form 709 for U.S. gift tax and reporting.

Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.