generation-skipping transfer tax

generation-skipping transfer tax definition - business

generation-skipping transfer tax

A federal tax designed to ensure that family property will be subject to taxation at least once each generation. For example, property given to a grandchild is subject to the generation-skipping transfer tax that is intended to result in a tax that is the same as if the property had been given first to a child and had been given subsequently to the grandchild.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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