generation-skipping transfer tax
The generation-skipping transfer tax refers to a federal tax imposed on the transfer of wealth from individuals to skip persons, who are typically two or more generations lower than the individual making the transfer. This tax aims to ensure that wealth is taxed at each generational level, preventing individuals from avoiding estate and gift taxes by directly transferring wealth to grandchildren or great-grandchildren.
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Related Concepts (2)
Similar Concepts
- capital gains tax
- capital gains tax exemption
- capital gains tax on inheritance
- generation-skipping transfers
- gift tax
- inheritance tax
- intergenerational transfer
- intergenerational transfers
- intergenerational wealth transfer
- risk transfer
- tax exemption
- tax shifting
- transfer payments
- transfer pricing
- wealth transfer