Generation-skipping Transfer Tax

What is Generation-skipping Transfer Tax?

A definition of generation-skipping transfer tax is: The 1986 Tax Reform Act, in the United States, imposes a generation-skipping transfer tax on (1) transfers under trusts (or similar arrangements) having beneficiaries in more than one generation below that of the transferor, and (2) direct transfers to beneficiaries more than one generation below that of the transferor. More details on the Encyclopedia. The tax is imposed (with certain exemptions) on the occurrence of any one of three taxable events: a taxable termination, a taxable distribution (including distributions of income) and a direct skip, that is, an outright transfer to or for the benefit of a person at least two generations below that of the transferor. More details on the Encyclopedia. I. More details on the Encyclopedia.R. More details on the Encyclopedia.C. More details on the Encyclopedia. §§ 2601 et seq.[1]

Resources

Notes

1. “Generation-skipping Transfer Tax” in the White America Dictionary (New York, Los Angeles, London, New Delhy, Hong Kong, 1989)

See Also

• Generation-skipping trust