taxable termination

Definition of "taxable termination"
  1. A situation where a transfer of property that is held in trust and subjected to a generation-skipping transfer tax occurs. This situation typically arises when a person's interest in the property ends, like at the time of a parent's death. Following this, no interest in the property is held by an individual who isn't a skip person, and a distribution of the property can be made to a skip person
How to use "taxable termination" in a sentence
  1. The lawyer explained to his client about the possibility of a taxable termination when transferring the family property to the grandson.
  2. To avoid a taxable termination from happening, the family decided to have the eldest son inherit the property.
  3. The estate's taxable termination resulted in a significant tax for the trustee to pay.

Provide Feedback
Browse Our Legal Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z