Generation-skipping Tax

Generation-skipping Tax means:
an estate tax on generation-skipping trusts, which is triggered when there is termination of the benefits to the in-between generation or when there is a distribution of trust corpus to the ultimate beneficiary of the trust. The rate of this tax is equal to the maximum estate tax rate which is 55%. The tax is paid by the distributee in the case of a taxable distribution, by the trustee after a taxable termination, and by the transferor of a direct skip not from a trust. Former IRC (check if this IRC provision is current here) §§2603 and 2641.

U.S. and other Developed Countries International Tax Meaning

Tax imposed to prevent the avoidance of transfer tax (i.e. estate tax and gift tax) over successive generations.

See Tax Rate and Tax Rate.