Generation-skipping trust

{
  "id": "MLC-T-LAW-002301",
  "term": "Generation-skipping trust",
  "field": "Law",
  "definition": "A legal arrangement that transfers assets to a beneficiary at least two generations younger than the grantor, such as a grandchild. This trust structure bypasses the intermediate generation (the grantor's children) for estate tax purposes. The Internal Revenue Service imposes a specific generation-skipping transfer tax on distributions or terminations from the trust that exceed the lifetime exemption amount.",
  "url": "https://mlchart.com/terminology/law/generation-skipping-trust/"
}