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 ?
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.
Generally, a tax is imposed on generation-skipping transfers (GST) of property, which includes a taxable distribution, a taxable termination, and a direct skip.
Generation-skipping transfers (Q 951) include direct skips, taxable terminations, and taxable distributions.
Generation-skipping transfers (Q 1510) include direct skips, taxable terminations, and taxable distributions.
This chapter discusses the generation-skipping transfer tax and planning with generation-skipping transfers, including the use of generation-skipping trusts.
1 million in generation-skipping transfers (transfers to skip persons) without paying the GST tax.
The GST tax currently is not applicable to generation-skipping transfers made during 2010, so the following discussion is pertinent to gifts made in 2009.
Few existing recordkeeping systems at CPA firms are able to sort clients by age, net worth, number of dependents, annual gifts, gift tax returns, generation-skipping transfers, family foundations or other tax- or investment-related issues that might require a CPA firm to send a reminder.
The GST subjects generation-skipping transfers to an additional tax that approximates the gift or estate tax that would have been due had a generation not been skipped.
Primary among the new legislation are the changes to the transfer tax system, which will ease administration of the laws that govern estates, gifts and generation-skipping transfers (GST).
2503(e) and were not generation-skipping transfers.
2503(e) and will not be deemed generation-skipping transfers (GSTs) under Sec.