Generation-Skipping Transfer Tax

Business, Legal & Accounting Glossary

Definition: Generation-Skipping Transfer Tax




What is the dictionary definition of Generation-Skipping Transfer Tax?

Dictionary Definition


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.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/generation-skipping-transfer-tax/
Modern Language Association (MLA):
Generation-Skipping Transfer Tax. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 23, 2021 https://payrollheaven.com/define/generation-skipping-transfer-tax/.
Chicago Manual of Style (CMS):
Generation-Skipping Transfer Tax. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/generation-skipping-transfer-tax/ (accessed: September 23, 2021).
American Psychological Association (APA):
Generation-Skipping Transfer Tax. PayrollHeaven.com. Retrieved September 23, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/generation-skipping-transfer-tax/

Definition Sources


Definitions for Generation-Skipping Transfer Tax are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 22nd April, 2020 | 0 Views.