When may the generation-skipping transfer tax apply?
The generation-skipping transfer tax may apply either when an individual contributes to an account for someone who is more than one generation younger than the contributor, such as a grandchild, or when the account owner changes the beneficiary to a new beneficiary who is more than one generation younger than the previous beneficiary. Consult your tax and financial advisers. Contributions that qualify for the annual gift tax exclusion are not subject to generation-skipping transfer tax. Generation-skipping transfer tax will be payable only on the amount by which contributions in excess of the annual exclusion amount exceed the contributor s lifetime generation-skipping transfer tax exemption ($3,500,000 for 2009). Consequently, this tax is unlikely to apply to many contributors. Where it applies, however, the generation-skipping transfer tax is imposed at the maximum federal estate tax rate.
The generation-skipping transfer tax may apply either when an individual contributes to an account for someone who is more than one generation younger than the contributor, such as a grandchild, or when the account owner changes the beneficiary to a new beneficiary who is more than one generation younger than the previous beneficiary. Consult your tax and financial advisers.
The generation-skipping transfer tax may apply either when an individual contributes to an account for someone who is more than one generation younger than the contributor, such as a grandchild, or when the account owner changes the beneficiary to a new beneficiary who is more than one generation younger than the previous beneficiary. Note: For transfers in 2010, there is no generation-skipping transfer tax. Please consult your tax and financial advisers for further information.
The generation-skipping transfer tax may apply either when an individual contributes to an account for someone who is more than one generation younger than the contributor, such as a grandchild, or when the account owner changes the beneficiary to a new beneficiary who is more than one generation younger than the previous beneficiary.
