generation skipping

generation skipping

adj., adv. referring to gifts made through trusts by a grandparent to a grandchild, skipping one's child (the grandchild's parent). Originally intended to avoid or defer federal gift or estate taxes if paid through a "generation skipping trust," it is now subject to a generation skipping tax, and if made directly without a trust, the gift is as taxable as any large gift. In other words, although generation skipping no longer works to avoid taxes, a grandparent can still give or leave gifts under $10,000 a year to a grandchild without a gift tax.

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These changes proposed to section 2704(b) would remove legitimate valuation discounts for estate, gift, and generation skipping taxes which businesses have used for the past two decades in order to prevent the IRS from overvaluing their businesses at death.
Note: the portability provisions do not apply to the generation skipping tax.
In addition, the generation skipping tax has been suspended for 2010, so gifts to grandchildren and beneficiaries entirely avoid the very egregious generation skipping tax.
His specializations include trust and estate planning, particularly generation skipping transfer taxes and business succession planning; income tax planning and consulting; stock option planning; cash flow and risk management planning; retirement planning; education planning and charitable giving.
EVEN ESTATE PLANNING professionals sometimes struggle with the generation skipping tax.
In addition, the bill rcunifies the gift, estate and Generation Skipping Transfer tax exemptions and makes the lifetime exemption portable between spouses, such that if it is not used by the first spouse to die, it would be available to the survivor.
The rights to Howard's works were purchased from the United States based company Alla Ray Morris Generation Skipping Exemption Trust for an undisclosed sum.
2000), provides references to important Federal estate, gift and generation skipping tax cases and rulings rendered after 1975.
Under IRC section 7491, in any court proceeding the IRS has the burden of proof with respect to any factual issue relevant to determining a taxpayer's liability for any income, self-employment, gift, estate and generation skipping transfer taxes if
EXHIBIT 1 DEFINITIONS TAX WHEN LEVIED Estate Tax Transfers upon death of decedent Gift Tax Transfers during lifetime of individual Generation Skipping 1) A transfer for the benefit of a Transfer Tax - person at least two generations Direct Skip (4) below that of the transferor.
On tonight's BBC1 Panorama programme he insists: "It's an extraordinary idea, abdication, generation skipping.
Care must be taken in preparing the Federal estate tax return, particularly with regard to the need to satisfy the exact requirements for making various elections, such as the "QTIP election," and for generation skipping tax purposes, the "reverse QTIP election.

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