Question

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

Answer 1

Answer:

After the death of Jacob's

Explanation:

Based on the information given we were told that Paul's transfer the life estate to Jacob which means that if Jacob dies when the amount of the trust was $7,650,000 the GENERATION-SKIPPING TRANSFER OF PROPERTY that will occur due to the legal Transfer of the property or inheritance will result after Jacob's death to the beneficiary which are the grandchildren for the sole aim of making sure that the life estate tax are paid and to ensure that the life estate taxes are not paid twice which is why GENERATION-SKIPPING TRUST was created in order to reduce estate taxes.

Therefore the GENERATION-SKIPPING TRANSFER OF PROPERTY will result after the death of Jacob's