Generation-skipping transfer or trust

(redirected from Generation Skipping Transfers)

Generation-skipping transfer or trust

A trust in which a principal amount is placed in a trust on the death of person A and is transferred to A's grandchildren when A's children die. The income from the trust goes to the children of person A while they survive.

Generation-Skipping Transfer or Trust

A trust into which assets are deposited and invested, but for different beneficiaries. That is, the assets of the trust are held on behalf of the grantor's grandchildren; they are divided among them when the grantor's children all die. On the other hand, income from the investment of those assets is distributed among the grantor's children. Generation-skipping trusts allow the grantor's assets to bypass estate taxes that the children would have to pay if the assets were directly transferred.
References in periodicals archive ?
For the uninformed or unwary the high rate of tax on generation skipping transfers insures hefty liabilities, interest and possible penalties.
GENERATION SKIPPING TRANSFER TAX--FILING REQUIREMENTS FOR THIS TAX YEAR
TRA 86 instituted a Generation Skipping Transfer Tax (GST Tax) upon transfers to or for the benefit of persons two or more generations below that of the grantor (referred to as skip persons).
Generation skipping transfer tax - filing requirements for this tax year
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