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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An irrevocable trust can not only remove the trust assets from estate taxation, it can also protect assets from creditors and in divorce situations, maximize the transfer tax deferral by making the trust Generation Skipping Tax (GST) exempt, and provide assurance that the right people will receive assets at the right time with the right amount of supervision.
For example, in 2012 the law allows estate-, gift--and generation skipping transfer (GST) exemptions of $5.
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.
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.
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.
But the amount you can save in estate and generation skipping taxes more than offsets that.
On tonight's BBC1 Panorama programme he insists: "It's an extraordinary idea, abdication, generation skipping.
On P's Form 706, United States Estate (and Generation Skipping Transfer) Tax Return, the value of the remaining prize installments was discounted to account for Connecticut's restrictions on Lotto winnings: (1) all prizes in excess of $1 million were payable in 20 equal annual payments, which could not be accelerated and (2) winners were forbidden from assigning or transferring their right to future installments to third parties.
Congress included the proposal the AICPA helped develop to modify the generation skipping transfer tax in its bill to repeal estate taxes.

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