Sch R Generation-Skipping Transfer Tax

TREASURY/IRS AND OMB USE ONLY DRAFT
SCHEDULE R
(Form 706)

Version A, Cycle 5

Generation-Skipping Transfer Tax

(August 2025)
Department of the Treasury
Internal Revenue Service

OMB No. 1545-0015

Attach to Form 706.
Go to www.irs.gov/Form706 for instructions and the latest information.

Decedent’s social security number

Decedent’s name as it appears on Form 706

The generation-skipping transfer (GST) tax is imposed on taxable transfers of interests in property located outside the United States as well as
property located inside the United States. See instructions.
Note: To avoid application of the deemed allocation rules, Form 706 and Schedule R (Form 706) should be filed to allocate the GST exemption
to trusts that may later have taxable terminations or distributions under section 2612 even if the form is not required to be filed to report estate
or GST tax.

Part I

GST Exemption Reconciliation (Section 2631) and Special QTIP Election (Section 2652(a)(3))

1

Maximum allowable GST exemption

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2

Total GST exemption allocated by the decedent against decedent’s lifetime transfers

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3

Total GST exemption allocated by the executor, using Form 709, against decedent’s lifetime transfers .

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4

GST exemption allocated on Part II, line 7 .

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GST exemption allocated on Part III, line 7 .

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Total GST exemption allocated on Schedule(s) R-1 (Form 706), Part II, line 7 .

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7

Total GST exemption allocated to inter vivos transfers and direct skips. Add lines 2, 3, 4, 5, and 6

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8

GST exemption available to allocate to trusts and section 2032A interests. Subtract line 7 from line 1

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9

List the allocation of GST exemption to trusts (as defined for GST tax purposes):

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A

B

Name of trust

Trust’s
EIN (if any)

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C

GST exemption allocated
on lines 2–6 above
(see instructions)

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D

10

Total additional GST exemption allocated. Add all amounts in column D.
May not exceed line 8, above . . . . . . . . . . . . . .

11

GST exemption available to allocate to section 2032A interests received by individual beneficiaries.
Subtract line 10 from line 8. You must attach special-use allocation statement. See instructions . . .

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 706.

E

Additional GST
exemption allocated
(see instructions)

Trust’s inclusion
ratio (optional)
(see instructions)

10

Cat. No. 94772F

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Schedule R (Form 706) (8-2025) Created 3/20/25

DRAFT — DO NOT FILE

DRAFT — DO NOT FILE

Note: To make a section 2652(a)(3) (special QTIP) election, list qualifying property in Part I, line 9, below. See instructions for details.

TREASURY/IRS AND OMB USE ONLY DRAFT

Version A, Cycle 5
Page 2

Schedule R (Form 706) (8-2025)

Part II
1

Direct Skips Where the Property Interests Transferred Bear the GST Tax on the Direct Skips

Enter the direct skips where property interests transferred are to bear the GST tax on the transfers.
(i)
Name of skip person

(ii)
Description of property interest transferred

(iii)
Estate tax value

DRAFT — DO NOT FILE

DRAFT — DO NOT FILE

2 Total estate tax values of all property interests. Add all amounts in column (iii) . . . . . . . .
3 Estate taxes, state death taxes, and other charges borne by the property interests listed above . .
4 GST taxes borne by the property interests listed above but imposed on direct skips other than those
shown on this Part II. See instructions . . . . . . . . . . . . . . . . . . . . .
5 Total fixed taxes and other charges. Add lines 3 and 4
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6 Total tentative maximum direct skips. Subtract line 5 from line 2 . . . . . . . . . . . .
7 GST exemption allocated. See instructions . . . . . . . . . . . . . . . . . . .
8 Subtract line 7 from line 6 . . . . . . . . . . . . . . . . . . . . . . . . .
9 GST tax due. Divide line 8 by 3.5 . . . . . . . . . . . . . . . . . . . . . . .
10 Enter the amount from Part III, line 9 . . . . . . . . . . . . . . . . . . . . .
11 Total GST taxes payable by the estate. Add lines 9 and 10. Enter here and on Form 706, Part II,
line 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Schedule R (Form 706) (8-2025)

TREASURY/IRS AND OMB USE ONLY DRAFT

Version A, Cycle 5
Page 3

Schedule R (Form 706) (8-2025)

Part III
1

Direct Skips Where the Property Interests Transferred Do Not Bear the GST Tax on the Direct Skips

Enter the direct skips where property interests transferred do not bear the GST tax on the transfers.
(i)
Name of skip person

(ii)
Description of property interest transferred

(iii)
Estate tax value

DRAFT — DO NOT FILE

DRAFT — DO NOT FILE

2 Total estate tax values of all property interests. Add all amounts in column (iii) . . . . . . . .
3 Estate taxes, state death taxes, and other charges borne by the property interests listed above . .
4 GST taxes borne by the property interests listed above but imposed on direct skips other than those
shown on this Part III. See instructions . . . . . . . . . . . . . . . . . . . . .
5 Total fixed taxes and other charges. Add lines 3 and 4
. . . . . . . . . . . . . . . .
6 Total tentative maximum direct skips. Subtract line 5 from line 2 . . . . . . . . . . . .
7 GST exemption allocated. See instructions . . . . . . . . . . . . . . . . . . .
8 Subtract line 7 from line 6 . . . . . . . . . . . . . . . . . . . . . . . . .
9 GST tax due. Multiply line 8 by 40% (0.40). Enter here and on Part II, line 10 . . . . . . . .

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Schedule R (Form 706) (8-2025)