The GST tax laws prevent the estate tax savings in the example above by imposing a generation-skipping transfer
tax, in addition to the regular estate tax, when Sally leaves her taxable estate directly to her granddaughter Kim.
11) While the other two components of the transfer tax system, the estate tax and generation-skipping transfer
tax, will be repealed at the end of 2009 without further legislation, the gift tax will remain intact.
Transfer taxes include estate taxes, gift taxes, and generation-skipping transfer
taxes (Exhibit 1).
She also advises lawyers and other professionals on complex issues regarding estate, gift, and generation-skipping transfer
All generation-skipping transfers
are taxed at the "applicable rate" (a flat rate equal to the maximum federal estate tax rate in effect at the time of the generation-skipping transfer
) multiplied by the "inclusion ratio.
The trust's assets are held for successive generations of beneficiaries with no estate or generation-skipping transfer
tax, and the trust is now taxed in the normal fashion, free of the throwback rules.
10) In an effort to fulfill their responsibilities to allocate the GST exemption among various transfers, personal representatives should seek to minimize the overall tax burden that will be imposed on all generation-skipping transfers
The revised hardbound volume covers all aspects of wealth transfer taxation, including gift tax, estate tax, income taxation of fiduciaries and preparation of the decedent's final return, and generation-skipping transfer
This new edition covers changes in tax law such as: Section 2036(c)-estate freezes, the new generation-skipping transfer
tax, Section 2056(c)-non-citizen surviving spouses and Section 2057-ESOP and EWOC deductions.
Gifts can be excluded from the generation-skipping transfer
In that role, he had responsibility for all matters relating to estate, gift, and generation-skipping transfer
The notice also discusses how donors can elect out of automatic allocation of the generation-skipping transfer
(GST) tax exemption for direct skips in 2010 and clarifies when 2010 GST tax returns are due.