What document records my spouse's consent to gift splitting?

The instructions require an attached Notice of Consent signed by the consenting spouse. That notice also carries a signing date and a statement agreeing to treat gifts to third parties as made half by each spouse.

Form 709: federal gift and GST tax return

Form 709 is the federal gift tax return, also used for generation-skipping transfers, and its instructions cover reportable gifts, definitions, documents and filing.

What Form 709 covers

Form 709 reports gifts covered by the instructions and records allocations of the lifetime generation-skipping transfer (GST) exemption. The instructions organize reporting by calendar year, with reportable gifts for that period collected on a single return.^[1]^[2]

The completion sequence calls for each gift to appear in the appropriate part of Schedule A. Schedules B, C and D accompany the return where applicable, and the instructions call for the completed return to carry a signature and signing date.^[2]

Who the filing instructions cover

The instructions address U.S. citizens and residents, including donors whose gifts to one recipient other than a spouse exceed the stated $19,000 annual threshold, subject to the listed exceptions. Gifts of future interests can require Form 709 even when their value falls below that amount.^[2]

The instructions describe a no-filing category when all three conditions hold. The donor made no gifts to a spouse, gave no recipient more than $19,000, and made only gifts of present interests.^[2]

For charitable gifts alone, the no-filing rule depends on transferring the donor's entire interest to qualifying charities. A partial-interest transfer, or a transfer of part of the interest to someone else, falls outside that rule.^[2]

Definitions used in the instructions

A present interest gives the recipient immediate rights to use, possess and enjoy the property or its income. A future interest postpones those rights, and the annual exclusion does not apply to that category.^[2]

Fair market value measures the property at the time of the gift. The definition uses a willing buyer and willing seller, neither compelled to transact, with both reasonably informed about the relevant facts.^[2]

For GST classification, an individual recipient is a skip person when assigned at least two generations below the donor. The instructions also recognize arrangements with substantially the effect of a trust, even when they are not expressly established as trusts.^[2]

Transfers excluded from gift reporting

Qualifying educational and medical payments are excluded from the instructions' meaning of gifts and omitted from Schedule A. The educational exclusion requires payment directly to the qualifying institution for tuition, with books, supplies and accommodation outside its scope.^[2]

The medical exclusion requires payment to the care provider. Amounts reimbursed by the recipient's insurance do not qualify for that exclusion to the extent of the reimbursement.^[2]

Information and supporting documents

The return asks for information identifying the donor, each recipient and the transferred property. The disclosure instructions also request the relationship between donor and recipient and any value received by the donor in exchange.^[2]

Property descriptions depend on the asset involved. For example, the instructions request an insurer's name and policy number for life insurance, and the entity's EIN for an interest transferred in a closely held entity.^[2]

Supporting information explains how the reported value was determined. The instructions call for attaching appraisals used for real estate or other property, and request an explanation of both the basis and amount of any valuation discount.^[2]

For a transfer in trust, the disclosure information includes the trust's EIN and its terms or governing instrument. For subsequent transfers to that trust, the supplemental-document instructions permit a brief description of its terms or another copy of the instrument.^[2]

Connections to other forms

Form 712, Life Insurance Statement, is an attachment for each life insurance policy. Publication 551, Basis of Assets, is the reference named for further explanation of adjusted basis.^[2]

Form 706 connects to a surviving spouse's use of a deceased spouse's unused exclusion amount. Where the executor made the relevant election, the instructions request the first four pages of the filed Form 706 and related supporting attachments.^[2]

Filing timing and extensions

Form 709 follows an annual filing cycle, generally with filing in the calendar year following the gift. When the specified deadline falls on a weekend or legal holiday, the instructions move it to the following business day.^[2]

Form 4868 and Form 2350 extend the time to file the individual income tax return, and the extension also applies to Form 709 when the filer requests it for that return. Form 8892 is used to request an automatic extension of time to file Form 709 and to pay gift or GST tax.^[2]

Questions and answers

Does Form 709 permit a joint return with my spouse?

The instructions require separate individual returns for spouses. Gift splitting generally involves a return from each spouse, although the instructions provide two exceptions allowing only the donor spouse to file.^[2]

Does the form ask about digital assets?

Line 21 asks whether reported transfers include a digital asset or a financial interest in one. The instructions require a checked answer even when the answer is negative.^[2]

How do the instructions describe correcting a filed Form 709?

The correction procedure uses another Form 709 with the amended-return box checked. It includes a statement explaining the changes, supporting information and a copy of the original return.^[2]

Related glossary terms

Foreign gift: A foreign gift is a gift or bequest received from a foreign person or estate. Certain receipts may require a U.S. person to report them on Form 3520, Part IV.
Foreign trust: For federal tax purposes, a trust is foreign if it fails either the court test or the control test. The tests concern U.S. court oversight and decision control.