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lozanna [386]
3 years ago
8

With $5,100,000 Paul's will creates a trust with the following provisions: life estate to Jacob (Paul's son) and remainder to An

astasia (Paul's granddaughter and Jacob's daughter). Jacob dies when the value of the trust is $7,650,000.
Required:
When does the generation-skipping transfer result?
Business
1 answer:
mezya [45]3 years ago
7 0

Answer:

The generation-skipping transfer results in the lifetime of Anastasia (Paul's granddaughter and Jacob's daughter).

Explanation:

a) Data:

Value of the Generation-skipping Trust created by Paul = $5,100,000

Value of the Generation-skipping Trust when Jacob dies = $7,650,000

b) Paul's generation-skipping trust (GST) is a type of legally binding trust agreement in which the contributed assets worth $5,100,000 in this instance are passed down to Paul's grandchildren and Jacob's children (Anastasia) when they are worth $7,650,000.  This "skipping" skips the next generation, that is, Paul's children (Jacob).

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