For generation skipping transfer purposes, which of the following is a skip person? A. Brother B....

For generation skipping transfer purposes, which of the following is a skip person? A. Brother B. Adopted daughter C. Great-granddaughter D. Son

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C. Great grand daughter

The generation-skipping tax (GST), also sometimes called the generation-skipping transfer tax, can be incurred when grandparents directly transfer money or property to their grandchildren without first leaving it to their parents.

The GST ( generation skipping tax)doesn't just apply to grandchildren. It also addresses gifts or transfers made to other family members and to unrelated individuals who are at least 37 1/2 years younger than the donor. All such beneficiaries are referred to as "skip persons."

The parent's generation is skipped to avoid an inheritance being subject to estate taxes twice—once when it moves from the grandparents to their children, then from those children to their children. The Internal Revenue Code (IRC) has therefore applied an additional tax to these inheritances since 1976—the GST—to compensate for the estate taxes that might otherwise have been avoided.

ekkarill92 answered 1 year ago

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