Generation-skipping transfer or trust

(redirected from Generation-Skipping Trust)

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 ?
The new partner concluded that the trust did not qualify as a generation-skipping trust and that a 40% generation-skipping transfer (GST) tax applied to the distribution.
The increases for the lifetime gift tax exemption and the generation-skipping trust tax exemption are the same: up to $5.
The IRS issued a private letter ruling addressing the tax treatment of a generation-skipping trust created in 2010, when the estate tax was not in effect.
This generation-skipping trust would not be taxed in the estates of Henry's children.
Generation-skipping trust (GST) planning has become more common over the last 20 years, as successful business owners, executives and wealthy individuals have enjoyed economic success.
For couples, there's no better time than now to take advantage of both spouses' $5 million exclusion--instated with the Tax Act--to establish a generation-skipping trust fund.
If the parent of a grandchild-distributee died after the transfer by a grandparent to a generation-skipping trust but before the distribution from the trust to the grandchild and a reverse QTIP election had been made, the distribution was a taxable termination and the "step-up in generation" rule was not available.
Make Low Interest Rate AFR Loans to a Generation-Skipping Trust (or Children or Grandchildren) for Investment Opportunities
Chapter topics include dealing with clients, a review of fundamentals of drafting wills, the wealthy young adult contemplating marriage, young married couples with and without children, unmarried couples, gifts from grandparents, remarriage with children, migratory married couples, the married small business owner or investor, asset protection and retirement planning, the generation-skipping trust, charitable gifts, planning for incapacity, federal wealth transfer tax principles and planning strategies, and probate and an estate tax return.
First, where a client stands to inherit a substantial estate from a parent and already has a substantial estate of his own, a generation-skipping trust would be set up to receive the parent's property for the benefit of the client.
The Legacy Trust, for another example, offered by the Preservation Group, based in Carlsbad, CA, is a proprietary three-in-one trust, or a combination of a dynasty trust, an income trust, and a generation-skipping trust.
The first four chapters of the book (which, like most of the others, are previously published essays tailored slightly and ordered to present as coherent a progression as possible) articulate various patterns of dynastic decentering, analyzing in detail the emergence of non-family fiduciaries as dynastic managers; the characteristic relations of the founder's children, grandchildren, and more remote descendants to each other, to the fiduciaries, and to the dynasty as a whole; the specific role of the generation-skipping trust as the principal instrument for shaping relations within the dynasty; the usual arc of dynastic formation and dissolution (spanning about a century); and a host of other matters pertaining to the dynasty as an institution.