generation-skipping trust Hear it!

generation-skipping trust Finance Definition

A trust that is created upon the person’s death. The income for the trust goes to the person’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.

generation-skipping trust Law Definition

n

A trust created for the purpose of carrying out a generation-skipping transfer.