Generation-skipping transfer tax

from Maslon Estate Planning Glossary'

Generation skipping transfer tax:
 * A transfer tax imposed at a rate equal to the highest estate tax rate (currently 45%) on gifts or estate transfers where the transferred assets pass, or will pass, to recipients two or more generations below the donor, without being subject to the imposition of estate tax at the intervening generations. Each donor currently has a generation skipping transfer tax exemption of $3,500,000.

Links

 * google definitions
 * Generation Skipping Transfer Tax, Investopedia
 * The Generation-Skipping Transfer Tax: A Quick Guide, Mark E. Powell, ESQ., October 2009, Journal of Accountancy