Contents
Graphic to show the effects of a sample lifetime generation-skipping gifts
Purpose
To show how each grandparent could use lifetime generation-skipping gifts to get a substantial portion of their estate to the grandchildren
Uses
When the parents of grandchildren do not need the inheritance from their parents, this technique helps to minimize taxes in transfer the wealth from the grandparents to the grandchildren.
Sales
By making the lifetime generation-skipping gifts, the gift taxes due on the gift also reduce the remaining estate, and estate taxes, of the grandparents. Also, the growth of the assets given will be removed from the grandparents estates.
Transitional Uses
This page is often used to show the advantage of making lifetime gifts -- by also showing the Generation-Skipping Bequests page.
Appeal
Families where the parents as well as the grandparents have an estate tax problem