Question

True or False:

The generation skipping transfer tax will be levied in addition to the gift tax if a grandparent gives property worth $5,000,000 to a grandchild while the parents of the grandchild are still alive​?

Answer 1

solution :

yes true

The generation skipping transfer tax will be levied in addition to the gift tax if a grandparent gives property worth $5,000,000 to a grandchild while the parents of the grandchild are still alive​:

generation skipping transfer tax:

The U.S. generation-skipping transfer tax imposes a tax on both outright gifts and transfers in trust to or for the benefit of unrelated persons who are more than 37.5 years younger than the donor or to related persons more than one generation younger than the donor, such as grandchildren.