Generation skipping transfer tax (GSTT) explained | Fidelity What is the generation-skipping transfer tax? The generation-skipping transfer tax is a Federal tax on transfers of assets or property to individuals (or to a trust for their benefit) that are more than one generation below the transferor
How the Generation-Skipping Transfer Tax Exemption Works - The Balance The generation-skipping tax is a special tax to cover direct transfers from grandparents to grandchildren It is a flat-rate tax currently set at 40% The generation-skipping tax also covers "skip people " These are gift recipients who are at least 37-1 2 years younger than the gift giver
What is the Generation-Skipping Transfer Tax? - TurboTax The Generation-Skipping Transfer Tax (GSTT) is a tax imposed on transfers that skip a generation, such as from parent to grandchild The GSTT is equal to the highest federal estate tax rate, currently 40%
Generation-skipping transfer tax - Wikipedia The U S generation-skipping transfer tax (a k a "GST tax") imposes a tax on both outright gifts and transfers in trust to or for the benefit of unrelated persons who are more than 37 5 years younger than the donor or to related persons more than one generation younger than the donor, such as grandchildren [1]
What Is the Generation-Skipping Transfer Tax? - Finance Strategists What Is the Generation-Skipping Transfer Tax? The Generation-Skipping Transfer Tax is a tax on all gifts or bequests that are made to people who are at least one generation apart It also applies to asset transfers made to people who are more than 37 5 years younger than the transferor, with some exceptions
How do the estate, gift, and generation-skipping transfer taxes work . . . The generation-skipping transfer tax is an additional tax on a transfer of property that skips a generation The United States has taxed the estates of decedents since the creation of the modern personal income tax in 1916 Gifts have been taxed since 1924