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IRS.gov Website
Publication 950
taxmap/pubs/p950-003.htm#en_us_publink100099471

Generation-Skipping Transfer Tax(p4)

rule
The GST tax may apply to gifts during your life or transfers occurring at your death, called bequests, made to skip persons. A skip person is a person who belongs to a generation that is two or more generations below the generation of the donor. For instance, your grandchild will generally be a skip person to you or your spouse.
The GST tax is figured on the amount of the gift or bequest transferred to a skip person, after subtracting any GST exemption allocated to the gift or bequest at the maximum gift and estate tax rates. Each individual has a GST exemption equal to the basic exclusion amount, as indexed for inflation, for the year involved.
GSTs have three forms: direct skip, taxable distribution, and taxable termination.
taxmap/pubs/p950-003.htm#en_us_publink100099472

More information.(p5)

rule
If you think you will have a gift or bequest on which GST tax must be paid, see Form 709, Form 706, Form 706-NA, and the forms' instructions for more information. You can get publications and forms from the IRS website, www.irs.gov. You (or your estate) may want to speak with a qualified tax professional to receive help with GST questions.