Generation-skipping transfer or trust

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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 ?
Bezos 1996 Revocable Trust with 4.8 million shares, while the Bezos Family Trust and the Bezos Generation Skipping Trust held 2.9 million and 675,000, respectively.
John Baldwin, of NAI Earle Furman, represented the seller, Hawkins Generation Skipping Trust, in the sale of an 11.82-acre property at 2300 Greer Highway in Travelers Rest from Bravo Alpha LLC.
Generation Skipping 1) A transfer for the benefit of a Transfer Tax - person at least two generations Indirect Skip (4) below that of the donor from the donor's generation skipping trust. 2) A transfer for the benefit of a person at least two generations below that of the donor upon the termination of the donor's generation skipping trust.
Changes are allowed to a generation skipping trust under IRC section 2642(a) having an inclusion ratio of zero only if the inclusion ratio is not increased by the change [EPTL section 11-1.11(b)(1)].
If Agnes had chosen a generation skipping trust, the entire $850,000 would be passed on to Henry and Judith's children and grandchildren.
beneficiary and the IRS using the Notification of Distribution From a Generation Skipping Trust, Form 706GS(D-1), a sort of generation skipping K-1.
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