Glossary Archive

The Generation-Skipping Exemption is a provision in U.S. tax law that allows a certain amount of assets to be transferred from one generation to a generation further down the line without incurring federal estate or gift taxes. This exemption is particularly relevant in estate planning as it enables individuals to pass on wealth to their...

The Generation-Skipping Exemption Allocation refers to a tax provision that allows individuals to allocate a specific amount of their estate tax exemption to transfers made to beneficiaries who are two or more generations younger than themselves, typically grandchildren. This exemption is part of the federal estate and gift tax system designed to prevent the erosion...

The Generation-Skipping Transfer (GST) Tax Return is a tax form used to report transfers of property that skip generations, specifically from a grandparent to a grandchild, or from a more remote ancestor to a descendant. This tax is designed to prevent individuals from avoiding estate taxes by transferring assets directly to younger generations, thereby bypassing...

The Generation-Skipping Transfer Tax (GSTT) is a federal tax applied to transfers of assets that skip generations, specifically when assets are passed from a grandparent to a grandchild, bypassing the parents. The purpose of this tax is to prevent wealthy individuals from avoiding estate taxes by transferring large sums directly to grandchildren or other beneficiaries...

A Generation-Skipping Trust is an estate planning vehicle designed to transfer wealth to grandchildren or later generations while bypassing the immediate children of the grantor. This type of trust is often used to minimize or avoid estate taxes that would typically be levied when assets are passed from one generation to the next. In a...

A Generation-Skipping Trust Exclusion is a provision in the Internal Revenue Code that allows individuals to transfer assets to beneficiaries who are two or more generations younger without incurring the generation-skipping transfer (GST) tax. This exclusion is fundamentally designed to help families preserve wealth across generations while minimizing tax burdens. The Generation-Skipping Trust Exclusion applies...

A Gift in Contemplation of Death is a legal term referring to a type of gift made by a person who anticipates their imminent death. This concept is particularly significant in the context of estate planning and probate law. Such gifts, often referred to as "donatio mortis causa," are made with the understanding that the...

The Gift Tax is a federal tax imposed on the transfer of property or money from one individual to another without receiving something of equal value in return. This tax is applicable when the value of the gift exceeds a certain threshold, which is adjusted periodically for inflation. As of 2023, individuals can gift up...

The Gift Tax Annual Exclusion is a provision under federal tax law that allows individuals to give a certain amount of money or property to another person without incurring gift tax. The annual exclusion amount is set by the IRS and can change over time due to inflation adjustments. As of 2023, the exclusion is...

Good Faith Negotiation A Good Faith Negotiation refers to a process in which parties engage in discussions and bargaining with the intention of reaching a mutually beneficial agreement. This principle is grounded in the expectation that all participants will deal honestly and fairly, avoiding deceit or manipulation. The concept originated in contract law and is...