Content Overview
- Summary
- When Must I File A Gift Tax Return?
- What Is The Unified Credit For Gift And Estate Taxes?
- If I Make Taxable Gifts, Will I Have To Pay Tax?
- What Is In My Gross Estate?
- What Is The Gift Tax?
- Which Gifts Are Taxable? (The Annual Gift Tax Exclusion and more)
- Can I Take An Income-Tax Deduction For Gifts I Make?
- Does The Person I Give A Gift To Have To Pay Taxes?
- What Is The Generation-Skipping Transfer Tax (GSTT)?
- What Is The Estate Tax?
- What Is My Taxable Estate?
- Will My Estate Have To File An Estate Tax Return?
- Will My Heirs Have To Pay Tax On Their Inheritance?
Gift, Estate, and Generation-Skipping Transfer Taxes
What Is The Generation-Skipping Transfer Tax (GSTT)?
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The generation-skipping transfer tax is a federal tax that may be imposed on gifts you make to people who are two generations below you, such as to grandchildren. However, as with gift taxes, there is an annual exclusion per gift recipient per year and there are exclusions for medical and educational expenses you pay.
Any GSTT you pay is also considered a gift, and may therefore be subject to gift tax as well! Plus, if you die within three years of paying the GSTT tax, the gift tax that you paid on account of the GSTT tax will be included in your estate and then possibly subject to estate taxes as well!
There may also be state estate and gift taxes due.
For information, see: http://www.irs.gov/uac/Form-706,-United-States-Estate-(and-Generation-Skipping-Transfer)-Tax-Return
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