Glossary Archive

A General Power of Appointment is a legal authority granted to a person (the "donee") to direct the distribution of property or assets held in a trust or estate, which allows the donee to appoint any person, including themselves, as the recipient of the property. This type of power is characterized by its broad scope,...

General Trust Powers General Trust Powers refer to the broad authorities granted to a trustee to manage, invest, and distribute the assets held within a trust. These powers are typically outlined in the trust document and are designed to enable the trustee to effectively fulfill their fiduciary duties, which include acting in the best interests...

General Warranty Deed A General Warranty Deed is a type of legal document used in real estate transactions that provides the highest level of protection to the buyer. It guarantees that the seller holds clear title to the property and has the right to sell it, while also ensuring that the property is free from...

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...