Business, Legal & Accounting Glossary
A federal tax imposed on money placed in a generation-skipping trust. Currently, there is a $1 million exemption to the GSTT; that is, each person may leave $1 million in a generation-skipping trust free of this tax. The GSST is imposed when the middle-generation beneficiaries die and the property is transferred to the third-generation beneficiaries. Every dollar over $1 million is subject to the highest existing estate tax rate–currently 55%–at the time the GSTT tax is applied.
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This glossary post was last updated: 22nd April, 2020 | 0 Views.