The Generation-Skipping Transfer Tax: A Quick Guide

6 Pages Posted: 3 May 2010  

Mark Powell

Independent

Date Written: October 1, 2009

Abstract

Sooner or later, every estate planner comes face-to-face with the generation-skipping transfer tax. Many practitioners do not feel up to the challenge because this particular tax as a reputation as being treacherous as the sea. This article helps identify situations that subject clients to the GSTT.

***NOTE: One sentence in the discussion about life insurance trusts is misleading as it was finally edited. The first sentence of the second paragraph in the Life Insurance Trust Issues section should say that if a transfer to an ILIT qualifies for the annual gift tax exclusion, it MAY ALSO be exempt from GST if the trust is drafted the right way. As published, the sentence makes it sound like annual gift tax exclusion gifts automatically qualify for GST exclusion, but it is not automatic. The trust must be designed the right way for contributions to qualify for both exclusions.

Keywords: estate tax, generation-skipping transfer tax, GST, GSTT

Suggested Citation

Powell, Mark, The Generation-Skipping Transfer Tax: A Quick Guide (October 1, 2009). Available at SSRN: https://ssrn.com/abstract=1598487 or http://dx.doi.org/10.2139/ssrn.1598487

Mark Powell (Contact Author)

Independent ( email )

No Address Available

Paper statistics

Downloads
1,207
Rank
12,704
Abstract Views
6,526