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Simple English definitions for legal terms

generation-skipping transfer

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A quick definition of generation-skipping transfer:

Generation-skipping transfer: When someone gives money or property to their grandchildren or other people who are much younger than them, it's called a generation-skipping transfer. This used to be a way for rich people to avoid paying taxes, but now there is a special tax for these kinds of gifts. If you give more than a certain amount of money to someone who is 37 ½ years younger than you, you have to pay a tax of 40%. However, some people can still avoid this tax by setting up special trusts called dynasty trusts.

A more thorough explanation:

A generation-skipping transfer is a type of gift made through a trust to family members or others who are a generation younger than the person creating the trust. This type of transfer was used in the past to avoid estate and gift taxes that would normally apply to large gifts or bequests. However, the generation-skipping transfer tax was created to close this loophole and tax these types of transfers similarly to other large gifts and bequests.

For example, if a wealthy grandparent wanted to leave a large sum of money to their grandchild, they could create a trust and make a generation-skipping transfer to avoid paying estate and gift taxes. However, with the generation-skipping transfer tax, this type of transfer would be taxed similarly to other large gifts and bequests.

The generation-skipping transfer tax applies to transfers above the applicable exclusion amount, which is currently $12,060,000 in 2022. Any amount gifted above this exclusion amount to individuals who are 37 ½ years younger than the creator of the trust will be taxed at a rate of 40%. However, individuals can still create dynasty trusts, which may avoid all gift taxes and the generation-skipping tax when transferred to younger generations.

general verdict | generation-skipping transfer tax

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BulbasaurNoLikeCardio
10:13
I am worried a nose piercing would like mess with my cardio even though everyone says no
10:13
Oh shoot hm
10:13
Do you have Discord
но здравствуй да русский мой первый язык так что :)
10:13
Ахахахах ну давай, добавь меня бро
JumpySubsequentDolphin
10:13
@BulbasaurNoLikeCardio: I’m very confused how would that interfere
10:13
Ща кину свой ник
10:13
Ща кину свой ник
BulbasaurNoLikeCardio
10:14
@babycat: then it sounds like if you get them pierced itll just be a secrete to surprise your future boo with since thy wont be poking out of your shirt
10:14
@jackfrost11770: reynard1 на Дискорде
babycat
10:14
yeah but like is that worth it for me? prob not. I think I like them the way they are
BulbasaurNoLikeCardio
10:15
@JumpySubsequentDolphin: For nose piercing I am thinking the like middle of your nose with the ring kinda thing, think itll like restrict airflow
babycat
10:15
woah you got a word for discord in russian that’s crazy
спасибо 🫡
triplethread
10:15
@BulbasaurNoLikeCardio: My nose is pierced and I run like 10 miles a week im good haha
BulbasaurNoLikeCardio
10:16
@babycat: if you are happy with them they look perfect, and if they are as big as you say I am sure people will still be looking with or without the piercing so you will get attention either way
Dkk
10:16
Closest I get to Russian is Lazy Square's cartoons. Should watch them. All very short cus he is lazy. https://www.youtube.com/watch?v=sGBkneu30Aw
JumpySubsequentDolphin
10:16
@BulbasaurNoLikeCardio: ohhh you mean septum? I think septum is even less painful than a nostril piercing
warning my discord pfp is fun lol and also i haven't changed my username since high school because i didn't feel like it 😭
10:18
LMAO yeah you have a fun pfp
BulbasaurNoLikeCardio
10:20
Yes the septum, so they don't feel weird or mess with breathing/running at all even when flipped in? At limit
snow
10:23
its been a quiet morning so far
LSDFan
10:23
i have no hope for today
JumpySubsequentDolphin
10:24
idk about septums, i only have nostril pierced @bulb
triplethread
10:24
snow i think we will prob hear back from kent the week of dec 1st
10:24
Past 10am and ....nothing
JumpySubsequentDolphin
10:24
I think UCLA a wave today no?
babycat
10:24
🚑
What time have UCLA waves been at
Dkk
10:24
It's only 7:24 AM. We on the west coast control the time.
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