generation-skipping trust

generation-skipping trust
A trust created to facilitate a generation-skipping transfer.

The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. . 2008.

generation-skipping trust
A trust designed to save on estate tax. The trust principal is preserved for the trust maker's grandchildren, with his or her children receiving only income from the trust. Because the children (the middle generation) never legally own the property, it isn't subject to estate tax at their death. (See also: generation-skipping transfer tax)
Category: Personal Finance & Retirement
Category: Wills, Trusts & Estates → Estate Tax

Nolo’s Plain-English Law Dictionary. . 2009.

generation-skipping trust
n. A trust created for the purpose of carrying out a generation-skipping transfer.

Webster's New World Law Dictionary. . 2000.

Look at other dictionaries:

  • generation–skipping trust — see trust Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • Generation-Skipping Trust — A type of legally binding trust agreement in which the contributed assets are passed down to the grantor s grandchildren, not the grantor s children. The generation to which the grantor s children belong skips the opportunity to receive the… …   Investment dictionary

  • generation-skipping trust — A trust established to transfer assets more than a single generation removed from the transferor. See deemed transferor generationskipping transfer tax …   Black's law dictionary

  • generation–skipping transfer — n: a transfer of property or of an interest in property that is to a person of a generation more than one generation below that of the transferor and that can be characterized as a taxable termination, a taxable distribution, or a direct skip see …   Law dictionary

  • 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 …   Law dictionary

  • Generation-skipping transfer tax — The U.S. Generation skipping transfer tax imposes a tax on both outright gifts and transfers in trust to or for the benefit of persons two or more generations younger than the donor, such as grandchildren. The generation skipping tax will be… …   Wikipedia

  • generation-skipping transfer tax — The 1986 Tax Reform Act 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… …   Black's law dictionary

  • generation-skipping transfer — Transfer of assets more than a single generation removed from the transferor (e.g., from grandfather to grandchild). See generationskipping transfer tax generation skipping trust …   Black's law dictionary

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