Schedule R

Schedule R is used to compute the generation-skipping transfer tax (GST tax) that is payable by the estate. This tax applies only to direct skips occurring at death. Unlike the estate tax, which applies to the value of the entire estate (regardless to whom it is distributed), the GST tax applies only to values passing to certain individuals and trusts referred to as direct skips.

Even when there is no GST tax due, this form is required to show the allocation of the GSTT exemption. When GST tax is due, individuals must also fill out Schedule C of form 709 (the Gift Tax Return). Form 709 is due at the same time as the donor's income tax forms.

For Further Explanation

Generation-Skipping Transfer Tax

Synopsis of IRS Publication 448