@madmanc20 wrote:
- Some CPAs/Estate Lawyers advise doing 709 even under annual gift exclusion when donee is GST Trusts for record keeping purposes. When 706 is filed many years from now after your passing, it leaves a proper GST allocation trail.
I agree with @Bsch4477 and the foregoing is good advice, particularly considering the following:
Certain transfers, particularly transfers to a trust, that are not subject to gift tax and are therefore not subject to the GST tax on Form 709 may be subject to the GST tax at a later date. This is true even if the transfer is less than the $15,000 annual exclusion. In this instance, you may want to apply a GST exemption amount to the transfer on this return or on a Notice of Allocation. However, you should be aware that a GST exemption may be automatically allocated to the gift if the trust that receives the gift is a “GST trust” (as defined under section 2632(c)).
