Generation-skipping transfer tax: Difference between revisions

Many individuals who might otherwise leave their entire estates outright to their children allocate their generation-skipping exemption to transfers to generation-skipping trusts for the benefit of their children and grandchildren. Such trusts will be funded with cash or property worth up to the available generation-skipping transfer tax exemption. If the term of such a trust is not limited, the trusts are often referred to as [[dynasty trust]]s.

 

 

*The trust will escape all transfer taxes when the children die and will pass tax-free to the grandchildren.