Legal Dictionary
Main Entry:
generation–skipping transferFunction:
noun : a transfer of property or of an interest in property that is to a person of a generation more than one generation below that of the transferor and that can be characterized as a taxable termination, a taxable distribution, or a direct skip —see also
DIRECT SKIP generation-skipping trust at
TRUST,
SKIP PERSON,
TAXABLE DISTRIBUTION,
TAXABLE TERMINATION NOTE: A transfer from a grandparent to a grandchild qualifies as a generation-skipping transfer, as does a transfer of a life estate to a child with a remainder in the grandchild. Such transfers are subject to a generation-skipping transfer tax.
