Reporting Generation Skipping Transfers on Form 706
Author: Klaralee R. Charlton
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2026 to receive credits. 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 layers on top of Estate Tax when transfers are made to much younger generations. As illustrated by the proliferation of private letter ruling requests, practitioners frequently misunderstand the importance of properly reporting generation skipping transfers and properly allocating the available exemption. This course will review the foundations of GST tax and explain when Schedule R for Form 706 must be completed. Examples of direct and indirect transfers will be reviewed along with taxable terminations and distributions.
Publication Date: July 2024
Topics Covered
- Overview of Estate & Generation Skipping Transfer Tax
- Direct and Indirect Transfers: Form 706 Schedule R for Direct Skips
- Taxable Distributions & Terminations: Form 706 Schedule R for Indirect Skips
- Allocating the GST Exemption
- Reverse QTIP Election
Learning Objectives
- Describe when GST tax applies in addition to estate tax
- Identify when to file Form 706, Schedule R to allocate the lifetime GST tax exemption
- Identify how to allocate the GST tax exemption to direct and indirect skips and calculate GST tax on a taxable distribution and termination
- Identify optimal asset allocation and planning techniques to minimize GST tax at the death of the taxpayer
- Identify the the basic exclusion amount for deaths occurring in 2024
Level
Intermediate
Instructional Method
Self-Study
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
