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Generation Skipping Trust Form

Generation Skipping Trust Form

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Instructions and help about generation skipping trust forms

So if you're a grandparent who wants to leave assets to your grandchildren I'm afraid there's something you should know and that is even after you set up your living trust and plan to maximize your estate tax exemption you might have a whole other tax to worry about this tax is called the generation-skipping transfer tax, and it is imposed on transfers that skip a generation how can that be you ask well here's where things get quite complicated but without delving too deeply into this area of the law I'll just point out one problem with transfers across generations, and it's possible solution you see the estate tax is a tax that is imposed on each and every generation that means if your child's estate has already left relatively large your child is already going to use up his or her own estate tax exemption with his or her own assets if a grandparent gives their child even more assets in this situation then another round of tax will be owed on those assets as they pass from your child

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