taxable termination
- 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
- The lawyer explained to his client about the possibility of a taxable termination when transferring the family property to the grandson.
- To avoid a taxable termination from happening, the family decided to have the eldest son inherit the property.
- The estate's taxable termination resulted in a significant tax for the trustee to pay.
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