# Form 706-GS(T): the trustee’s GST tax return for trust terminations

- **Canonical URL:** https://formspedia.com/us/form-706-gs-t/
- **Last updated:** 2026-11-05
- **Country & Language:** United States (`en-US`)
- **Form:** Form 706-GS(T)
- **Revision:** Rev. December 2025 (for terminations made after December 31, 2024); instructions Rev. December 2025
- **Issuing Agency:** Internal Revenue Service
- **Tax Area:** Estates, trusts and inheritance
- **Who Must File:** The trustee of any trust that has a taxable termination, for the tax year in which the termination occurred; for a nonexplicit trust, the person in actual or constructive possession of the property
- **Filing Method:** Paper return mailed to Department of the Treasury, Internal Revenue Service Center, Kansas City, MO 64999 (private delivery service: 333 W. Pershing Road, Kansas City, MO 64108); supplemental returns to Stop 824G, 7940 Kentucky Drive, Florence, KY 41042-2915
- **Filing Deadline:** April 15 of the year following the calendar year in which the termination occurs (next business day if a weekend or legal holiday); automatic extension with Form 7004 filed by that date
- **Legal Basis / Statute:** Internal Revenue Code chapter 13 (generation-skipping transfer tax): sections 2611(b), 2622(b), 2632, 2652(a)(3) as cited on the form; penalties under sections 6651 and 6662
- **Official Form PDF:** https://www.irs.gov/pub/irs-pdf/f706gst.pdf

Form 706-GS(T) is the return a trustee files when an interest in a trust ends and the property passes to beneficiaries two or more generations below the person who set up the trust. The trustee, not the beneficiary, reports the termination and figures the generation-skipping transfer (GST) tax due. The revision now on IRS.gov is dated December 2025 and printed "Use for terminations made after December 31, 2024", so it covers terminations in calendar year 2025 and later. That revision also folded the old Schedules B(1) and B(2) into a single Schedule A with five parts, which changes where some numbers go compared with older returns.

### Who files Form 706-GS(T), and which terminations stay off it

The Instructions for Form 706-GS(T) (Rev. December 2025) put the filing duty on the trustee of any trust that has a taxable termination, for the tax year in which the termination occurred. A taxable termination is the end of an interest in property held in trust, whether by death, lapse of time, release of a power or any other means. It is not taxable if, immediately afterward, a non-skip person has an interest in the property, or if no distribution can ever be made from the trust to a skip person.

A skip person, for terminations, is a natural person assigned to a generation two or more below the settlor's, or a trust in which every interest is held by skip persons (or in which nobody holds an interest and no distribution can ever go to a non-skip person). Family relationships decide the generation first; where they don't apply, birth date does. Someone born no more than 12½ years after the transferor is in the transferor's generation, someone born more than 12½ but not more than 37½ years after is one generation down, and a new generation starts every 25 years after that. A grandchild whose parent (the transferor's child) was already dead at the time of the transfer moves up and is treated as a child. Under the 90-day rule, a parent who dies no more than 90 days after a transfer made because of the transferor's death counts as having died first.

The filer is not always a named trustee. An arrangement with substantially the same effect as a trust, such as an insurance or annuity contract, a life estate followed by a remainder, or an estate for years, is a nonexplicit trust. The person in actual or constructive possession of the property is treated as the trustee and has to file. Decedents' estates are not nonexplicit trusts.

Several situations mean no GST tax on the termination, at least in part:

- A trust that was irrevocable on September 25, 1985 is outside the tax, unless additions were made after that date. When there was an addition, only the portion that comes from the addition is taxed, using an allocation fraction rounded to five decimal places.

- An irrevocable trust in existence on September 25, 1985 that holds QTIP property is treated as if the QTIP election had not been made, so transfers from it are not subject to GST tax.

- A revocable trust executed before October 22, 1986, not amended after October 21, 1986 in a way that created or increased a generation-skipping transfer, with no additions (apart from the exceptions to the additions rule), and whose settlor died before January 1, 1987, is covered by a transition rule.

- If the settlor was under a mental disability on October 22, 1986, the tax may not apply; Regulations section 26.2601-1(b)(3) has the definition.

- If all of the property in the termination was distributed and used for medical or educational expenses that would have escaped gift tax under the medical and educational exclusion, the termination is not a generation-skipping transfer and does not go on the form.

Terminations left off because of the section 2611(b)(1) or (2) exceptions (the medical and educational exclusion and prior payment of GST tax) still show up indirectly: Part II, line 4 asks whether any occurred, and a "Yes" means describing them on Part IV, line 12.

### Due date, Form 7004 extension and the mailing address

The trustee files by April 15 of the year after the calendar year in which the termination occurred. A termination in 2026 makes the return due April 15, 2027. If April 15 falls on a Saturday, Sunday or legal holiday, the due date moves to the next business day.

The instructions point to Form 7004 for more time. The extension is automatic: no signature and no reason are needed, but Form 7004 has to be filed on or before the regular due date. On Form 7004 (Rev. December 2025), line 1 takes form code 02 for Form 706-GST. The Form 7004 instructions give 6 months as the general automatic extension period. A paper Form 7004 for a 706-GS(T) goes to Department of the Treasury, Internal Revenue Service, Kansas City, MO 64999-0019. Form 7004 does not extend the time to pay, and interest runs on tax not paid by the due date even when filing is extended.

In one case the instructions require the extension. If the trustee elects alternate valuation and the alternate valuation date falls after the original due date, the instructions say you must request an extension on Form 7004.

The completed return is mailed. The instructions and the IRS page "Filing Estate and Gift Tax Returns" give these addresses for Form 706-GS(T):

| What you are sending | Address |
| --- | --- |
| Original return by U.S. mail | Department of the Treasury, Internal Revenue Service Center, Kansas City, MO 64999 |
| Original return by an IRS-designated private delivery service | Internal Revenue Service, 333 W. Pershing Road, Kansas City, MO 64108 |
| Supplemental return (U.S. mail or private delivery service) | Internal Revenue Service Center, Stop 824G, 7940 Kentucky Drive, Florence, KY 41042-2915 |

Private delivery services can't deliver to P.O. boxes; the list of designated services is at IRS.gov/PDS, and those services meet the "timely mailing as timely filing" rule.

### How to fill out Form 706-GS(T), page 1 and Part IV

The instructions set an order that differs from the page order: Parts I and II first, then each Schedule A, then Parts III and IV. Part III only adds up the Schedules A, so it can't be finished before them. Write the calendar year of the terminations in the "For calendar year" space at the top of page 1.

| Line | What goes there | Where it comes from |
| --- | --- | --- |
| 1a, 1b | Name of the trust and its taxpayer identification number (TIN) | The trust's TIN; a nonexplicit trust needs a TIN of its own, used only for that trust. If it hasn't arrived by the due date, write "Applied for" on line 1b |
| 2a to 2i | Trustee's name and address; lines 2g to 2i only for a foreign address | The trustee or the person treated as trustee |
| 3 | Yes or No: property contributed since the last Form 706-GS(T) or 706-GS(D-1) was filed | Trust records. "Yes" means the inclusion ratio must be refigured and shown on Part IV, line 11 |
| 4 | Yes or No: terminations not reported because of the section 2611(b)(1) or (2) exceptions | "Yes" means a description on Part IV, line 12 |
| 5 | Checkbox if the trust is not an explicit trust | Check it and describe the arrangement on Part IV, line 13 |
| 6a1 to 6a6 | GST tax from each Schedule A, by Schedule A number | Schedule A, Part IV, line 28 |
| 6b | Total GST tax from every Schedule A beyond the sixth | The extra Schedules A |
| 7 | Total GST tax | Lines 6a1 through 6b added |
| 8 | Payment made with Form 7004, if any | Your Form 7004 payment record |
| 9 | Tax due | Line 7 minus line 8, when line 7 is larger |
| 10a to 10d | Overpayment and direct deposit details | Line 8 minus line 7, when line 8 is larger; then routing number, account type and account number |
| 11 to 13 | Part IV explanations | Only when line 3 or 4 is "Yes" or line 5 is checked |

For direct deposit, the routing number on line 10b must be nine digits starting with 01 through 12 or 21 through 32. Check exactly one box on line 10c. The account number on line 10d can be up to 17 characters, letters and numbers, with hyphens but without spaces or the check number. An overpayment under $1 is refunded only on written request.

The trustee or an authorized representative signs the declaration under penalties of perjury. A paid preparer signs and completes the Paid Preparer Use Only area, may do so by rubber stamp, mechanical device or software, and must give the trustee a copy of the completed return.

### Schedule A, part by part

Schedule A runs from page 3 to page 6 and has its own line numbers, 1 to 30, with the trust name, Schedule A number and TIN repeated at the top of each page. All terminations from one trust that share the same inclusion ratio go on a single Schedule A; a terminating interest with a different inclusion ratio needs its own Schedule A. Separate trusts also get separate Schedules A on the same Form 706-GS(T). The instructions treat portions of a trust from different transferors, and substantially separate and independent shares of different beneficiaries, as separate trusts. Number the Schedules A consecutively. Copy the blank schedule before you start if you'll need more than one.

| Schedule A line | What you enter | Notes from the instructions |
| --- | --- | --- |
| Part I, line 1 | Yes or No: GST exemption allocated by the section 2632 deemed allocation rules | "Yes" means the inclusion ratio on line 25 and an explanation on line 29 |
| Part I, line 2 | Yes or No: contributions left out of the inclusion ratio | "Yes" means an explanation on line 30 |
| Part I, line 3 | Yes or No: special QTIP election under section 2652(a)(3) | The figures come from the donor spouse's Form 709 or the deceased settlor's Form 706 |
| Part I, line 4 | Each skip person's name, SSN or EIN, and the line 7 item number of the interest held | One row per skip person |
| Part I, line 5 | Description of the terminating power or interest | If you treat parts of the trust as separate trusts, explain why here |
| Part I, line 6 | Checkbox for alternate valuation | Section 2032; check it on every applicable Schedule A |
| Part I, line 7 | Each property: item number, description, termination date, valuation date, value | Column (d) equals the termination date unless line 6 is checked; column (e) is reduced by any consideration the skip person provided |
| Part I, lines 8 to 10 | Column (e) totals, including continuation pages | Line 10 is carried to line 22 |
| Part II, lines 11 to 16 | Debts, expenses and taxes of the entire trust, the percentage allocated to this termination, and the net deduction | Line 16 is line 14 times line 15 |
| Part III, lines 17 to 21 | Expenses that relate only to the terminations on this Schedule A, plus line 16 | Line 21 is carried to line 23 |
| Part IV, lines 22 to 28 | Taxable amount, inclusion ratio, maximum rate, applicable rate, GST tax | Line 28 goes to page 1, line 6a |
| Part V, lines 29 and 30 | How the inclusion ratio was figured; why a contribution was left out | Line 29 is described in every case |

Column (b) of line 7 has its own detail rules. Real estate is described well enough for the IRS to locate it, with area and improvements; stocks and bonds carry the CUSIP number along with the details the instructions list, such as shares, issuer, exchange, interest rate and maturity. Property with the same termination date, valuation date and unit value, such as shares of one stock, can share an item number. Explain how each column (e) value was figured and attach copies of any appraisals.

Part II is for expenses of the whole trust, such as trustee's fees, administrative expenses, financial advisor's fees and accounting fees, listed with the payee's name and address. Line 15 is the share allocated to this termination: the terminated interest's value divided by the total trust value at termination, multiplied by the days in the year through the termination date over the days in the year (or, if the entire trust terminated during the year, the days the trust existed that year). With a second termination in the same year, the expense already allocated to the first comes off the pool. Part III takes expenses tied only to the terminated property, such as property tax on real estate, selling costs or attorney's fees for defending title, with the related line 7 item numbers.

Alternate valuation applies to all terminations in the same trust that happened at the same time as, and because of, an individual's death. It is allowed only if it lowers both the total value and the net GST tax, it can't be revoked, and it can still be made on a late return filed no later than 1 year after the due date, including extensions. Property distributed or disposed of within 6 months after the termination is valued on that date; property still in the trust is valued 6 months after the termination.

### Inclusion ratio and the GST tax on line 28

The trustee figures the inclusion ratio for every termination. It equals 1 minus the applicable fraction. The numerator of that fraction is the GST exemption allocated to the trust. The denominator is the value of the property transferred to the trust, less any federal estate tax or state death tax actually recovered from the trust for that property and any charitable deduction under section 2055 or 2522. Round the applicable fraction to at least the nearest one-thousandth.

The settlor allocates exemption on Form 709, or the executor does it on the settlor's Form 706, and allocations can't be revoked. The trustee gets these figures from the settlor or the executor. Exemption not allocated by the due date of the settlor's estate tax return is allocated automatically under section 2632. The instructions list the exemption by year of transfer, from $1 million for transfers through 1998 to $13,610,000 for 2024 and $13,990,000 for 2025; later years are in Rev. Proc. 2024-40 and the revenue procedures that follow it. A portability (DSUE) election made by a deceased spouse's executor does not add to the GST exemption.

Which value goes in the denominator depends on how the property came in. For a lifetime gift it is generally the gift tax value, provided the exemption was allocated on a timely filed gift tax return or deemed allocated under section 2632(b)(1); a late allocation uses the value when the allocation is filed. A transfer at death generally uses the estate tax value. When property is added to an existing trust, the fraction is refigured with the new exemption and the new value on top of what was already in the trust. Charitable lead annuity trusts and transfers subject to an estate tax inclusion period have their own rules in the instructions.

Line 26 takes the maximum federal estate tax rate in effect when the transfer occurred: 40% after December 31, 2012, with lower or zero rates listed for 2003 through 2012. Line 27 is the inclusion ratio times that rate, and line 28 is the taxable amount on line 24 times line 27.

A hypothetical shows how the lines connect. A trust was funded at death with property worth $4,000,000, the executor allocated $1,000,000 of GST exemption to it, and no tax or charitable deduction was taken from the trust. The applicable fraction is 0.250 and the inclusion ratio is 0.750. In 2026 the life interest ends and $3,200,000 passes to the grandchildren. After $50,000 of Part III expenses and no Part II expenses, line 24 is $3,150,000. Line 27 is 0.750 times 40%, or 30%, and line 28 is $945,000.

### Paying the tax on line 9

The instructions list four ways to pay a line 9 balance. EFTPS and a same-day wire from the trust's bank are electronic. A check is made payable to "United States Treasury" with the trust's TIN and "Form 706-GS(T)" written on it. Cash can be paid at participating retail stores (IRS.gov/PayCash). The balance is due by the April 15 due date even when Form 7004 extends the filing date.

### Late filing, low values and supplemental returns

Section 6651 imposes penalties for late filing and late payment unless there is reasonable cause. Section 6662 adds a 20% penalty for an underpayment caused by negligence, disregard of rules, or a valuation understatement. A substantial valuation understatement means a reported value of 65% or less of the actual value; a gross one means 40% or less. No penalty is assessed when the underpayment from a valuation understatement is $5,000 or less. Interest is charged on unpaid tax from the due date, and on section 6651 additions from the due date of the return (including extensions) until paid.

To change a return already filed, file another Form 706-GS(T) with "Supplemental Information" written across the top of page 1, a statement of what changed with support, and a copy of the original return, and send it to the Florence, KY address above. If the IRS has already told you the return was selected for examination, give the information to the office conducting the examination.

### Checks before mailing the return

- Each Schedule A covers terminations with one inclusion ratio, is numbered, and its line 28 matches the amount on page 1, line 6a.

- Line 29 explains how each inclusion ratio was figured, and lines 11 to 13 and line 30 are filled in wherever a "Yes" or the line 5 box calls for them.

- The explanation of the column (e) values and copies of any appraisals are attached.

- If alternate valuation is elected, the line 6 box is checked on every applicable Schedule A.

- Any Form 7004 payment is on line 8, and the trustee or authorized representative has signed and dated the return.

### Related forms

- Form 7004 requests the automatic extension; form code 02 identifies Form 706-GST.

- Form 706-GS(D-1) is the other return named on Part II, line 3, when you check whether property was added since the last filing.

- [Form 8821](/us/form-8821/) lets the trust authorize someone to receive its tax information; for a trust, the trustee's name, title and address and the trust's name and EIN go on line 1, and a trustee with authority to bind the trust signs.

### Where to get the official Form 706-GS(T) PDF

The IRS publishes the [Form 706-GS(T), Rev. December 2025](https://www.irs.gov/pub/irs-pdf/f706gst.pdf) as a fillable PDF of six pages: page 1, Part IV on page 2, and Schedule A on pages 3 to 6. The [Instructions for Form 706-GS(T), Rev. December 2025](https://www.irs.gov/pub/irs-pdf/i706gst.pdf) are a separate nine-page file. The form also carries the name Form 706-GST. Its Privacy Act and Paperwork Reduction Act notice is in the Instructions for Form 706, not in the 706-GS(T) instructions. Older revisions are on the IRS "All Form 706-GS(T) revisions" page.

### Questions about Form 706-GS(T)

#### Does a trust need an EIN before filing Form 706-GS(T)?

Every trust filing the return must have a TIN, and a trust without one should apply for it. If the TIN has not been received by the due date, write "Applied for" on line 1b.

#### Can Form 706-GS(T) be filed electronically?

Neither the instructions nor the IRS "Filing Estate and Gift Tax Returns" page describes an electronic option for Form 706-GS(T). Both give mailing addresses only: Kansas City for the original return and Florence, Kentucky for a supplemental one.

#### Is the GST exemption amount for 2026 on the form?

The table in the December 2025 instructions stops at $13,990,000 for 2025. For later years the instructions send you to Rev. Proc. 2024-40 as modified and supplemented by later revenue procedures.

### Official sources

- Internal Revenue Service, [Form 706-GS(T), Generation-Skipping Transfer Tax Return for Terminations, Rev. December 2025](https://www.irs.gov/pub/irs-pdf/f706gst.pdf)

- Internal Revenue Service, [Instructions for Form 706-GS(T), Rev. December 2025](https://www.irs.gov/pub/irs-pdf/i706gst.pdf)

- Internal Revenue Service, [About Form 706-GS(T)](https://www.irs.gov/forms-pubs/about-form-706-gs-t)

- Internal Revenue Service, [Filing Estate and Gift Tax Returns](https://www.irs.gov/businesses/small-businesses-self-employed/filing-estate-and-gift-tax-returns)

- Internal Revenue Service, [Form 7004, Rev. December 2025](https://www.irs.gov/pub/irs-pdf/f7004.pdf)

- Internal Revenue Service, [Instructions for Form 7004, Rev. December 2025](https://www.irs.gov/pub/irs-pdf/i7004.pdf)

- Internal Revenue Service, [Instructions for Form 8821, Rev. September 2021](https://www.irs.gov/pub/irs-pdf/i8821.pdf)