Reporting Generation Skipping Transfers on Form 706
Date: Friday, July 24, 2026
Instructor: Klaralee R. Charlton
| Begin Time: |
11:00am Pacific Time
12:00pm Mountain Time
1:00pm Central Time
2:00pm Eastern Time |
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
|
NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Generation-skipping transfer (GST) tax adds a complex and often misunderstood layer to estate tax reporting when wealth transfers skip one or more generations. Errors in GST reporting—or failure to properly allocate the GST exemption—can result in unexpected and substantial tax liabilities for estates and beneficiaries. This practical, example-driven course equips tax and estate professionals with a clear framework for identifying, reporting, and planning for GST obligations on the federal estate tax return (Form 706).
Participants will examine when GST tax applies in addition to estate tax, how and when Schedule R must be completed, and the critical differences between direct skips, taxable terminations, and taxable distributions. The course also explores effective exemption allocation strategies, common practitioner mistakes highlighted by IRS rulings, and advanced coordination techniques—such as the Reverse QTIP election—to help minimize current and future GST tax exposure.
Who Should Attend
This course is designed for professionals responsible for estate planning, estate administration, and transfer tax compliance.
Topics Covered
- Overview of estate tax and generation-skipping transfer tax interaction
- Identifying GST events and skip persons
- Reporting direct and indirect skips on Form 706, Schedule R
- Taxable distributions and taxable terminations
- Allocating the GST exemption to reduce long-term tax exposure
- Using the Reverse QTIP election in marital trust planning
- Common reporting errors and IRS focus areas
Learning Objectives
- Identify transactions that trigger generation-skipping transfer tax in addition to estate tax
- Determine when Form 706, Schedule R must be completed
- Differentiate between direct skips, taxable distributions, and taxable terminations
- Calculate GST tax liability for taxable distributions and terminations
- Apply GST exemption allocation strategies to minimize current and future transfer taxes
Level
Intermediate
Instructional Method
Group: Internet-based
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
A general understanding of estate tax will be helpful before taking this course.
Advance Preparation
None
