Definition of generation-skipping tax in US English:

generation-skipping tax

(also GST)


  • An estate tax imposed on beneficiaries who are two or more generations removed from the testator.

    ‘a married couple has a total generation-skipping tax exemption of transfers of up to $2,000,000’
    • ‘Estate, inheritance, gift and generation-skipping taxes are very different from income taxes, and very little about them is intuitive.’
    • ‘She advises clients on a variety of matters, including estate, gift and generation-skipping tax issues, trust and estate administration, and contested trust and tax matters.’
    • ‘Proper planning with an attorney who is experienced in estate planning will reduce or eliminate the generation-skipping tax in most instances.’
    • ‘The bill would provide for a phased-in repeal of estate, gift, and generation-skipping taxes.’
    • ‘Superficially, this Act appears to phase out the Federal estate and generation-skipping taxes progressively until they are fully eliminated in 2010.’
    • ‘We help clients administer estates through the probate process and during trust administration, while dealing with the related income, estate, gift, and generation-skipping taxes.’
    • ‘Therefore, unless a later Congress re-enacts these changes, the repeal of the estate and generation-skipping transfer taxes will last for only one year, the top marginal estate, gift, and generation-skipping tax rates would revert to 55% and the amount exempt from estate and generation-skipping transfer taxes would be $1,000,000.’
    • ‘This means, only one year after the estate and generation-skipping transfer taxes have been repealed, the estate tax and generation-skipping taxes, as they exist currently, would be reinstated.’
    • ‘Leveraging is the process by which each dollar of exclusion or exemption allocated to a transfer insulates some multiple of itself from the generation-skipping tax system.’
    • ‘In comparison, Canada is an estate-planning paradise because our tax laws do not include specific generation-skipping taxes.’
    • ‘This memorandum summarizes the highlights of the 2001 Tax Act concerning estate, gift and generation-skipping taxes but it does not purport to be an exhaustive summary of the 2001 Tax Act.’
    • ‘As long as money stays in the trust, it can pass from generation to generation without additional estate or generation-skipping taxes, allowing the trust to accumulate vast sums over time.’
    • ‘Also, if your father's grandchildren receive more than $1.5 million, an extra 48 percent generation-skipping tax may be owed as well.’
    • ‘Such a strategy avoids the generation-skipping tax and shelters any appreciation on the assets in the trust from further transfer tax.’
    • ‘The generation-skipping tax is a flat tax of 48%.’
    • ‘The amount that avoids generation-skipping taxes increases to $1.5 million in 2004, $2 million in 2006 and $3.5 million in 2009 before the tax is repealed entirely in 2010.’
    • ‘The generation-skipping tax or GST is a tax on assets that you pass on to your grandchildren at an effective 80% rate, once you have utilized your GST exemption.’
    • ‘This year, the amount that a parent can leave at death free of estate or generation-skipping taxes is $1.5 million.’
    • ‘Estate and generation-skipping taxes can grab roughly half of a parent's wealth as money moves to another generation.’
    • ‘Since the function of the generation-skipping tax is to deter gift and estate tax avoidance by the intermediate generation, the generation-skipping tax won't apply if these other taxes do apply.’