However, the GST subjects such 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.
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.
2503(e) and were not generation-skipping transfers
1 million in generation-skipping transfers
(transfers to skip persons) without paying the GST tax.
The value of the transfer listed on Schedule A, Part 2, column H, should be entered on Schedule C, Computation of Generation-Skipping Transfer
Tax, Part 1, Generation-Skipping Transfers
, in column B (split gifts made by the donor's spouse are listed in the lower portion of Schedule C, Part 1).
The current transfer tax system consists of a set of complex laws that apply to estates, gifts, and generation-skipping transfers
2503(e) and will not be deemed generation-skipping transfers
(GSTs) under Sec.
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
303(d), special rules for generation-skipping transfers
, is outside of the scope of this article, because it differs from the fundamental purpose of Sec.
In order to allocate the GSTT exemption to generation-skipping transfers
in trust, the donor must calculate an inclusion ratio.
The final regulations are generally effective for generation-skipping transfers
made after Dec.
0 million exemption, together with a 35% tax rate, applies to estates of those dying in 2011 and 2012, as well as to gifts and generation-skipping transfers
made in those years.