generation-skipping transfer tax
- A tax applied by federal authorities on large money transfers or inheritances directed to a grandchild or great-grandchild, designed to prevent tax avoidance procedures by skipping a generation. It applies to wealth transfers exceeding an exempt amount
- The affluent couple planned their estate carefully to account for the generation-skipping transfer tax.
- Being aware of the generation-skipping transfer tax, the wealthy family consulted a tax advisor before proceeding with the inheritance.
- In order to avoid the generation-skipping transfer tax, it was essential for them to plan inheritance below the threshold.
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