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 $6 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, such as grandchildren. Monique, being Eric's wife, is not considered a generation-skipping transfer, so her inheritance is not subject to GSTT.

Eric Dies at Age 96 and Is Survived by His