generation-skipping trust

generation-skipping trust definition - finance
A trust that is created upon the personÂ’s death. The income for the trust goes to the personÂ’s children while they are alive. When the children die, the trust transfers to the grandchildren. Tax regulations have been tightened to limit the tax-free transfer to grandchildren to $1 million.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.