Eric dies at age 96 and is survived by his third wife, Monique (age 22), and a granddaughter, Paula (age 50). Eric's will divides his $11 million estate between these two survivors. Both of these transfers are subject to the generation skipping transfer tax (GSTT).

Question

Quizplus · Accepted Answer

The generation-skipping transfer tax (GSTT) applies to transfers to individuals who are two or more generations younger than the donor. Monique, being Eric's wife, is not considered a generation-skipping beneficiary, so the transfer to her is not subject to GSTT. Only the transfer to Paula, the granddaughter, may be subject to GSTT.

Eric Dies at Age 96 and Is Survived by His