1.4.1 Basic Quiz -- Generation-Skipping Transfer Tax Overview

In general, the Tax Code imposes a potential tax on large generation-skipping transfers.

True False

The term generation-skipping transfer includes a taxable distribution, a taxable termination or a direct skip.

True False

A taxable distribution occurs when there is a distribution from a trust to a skip person.

True False

In the case of a taxable distribution from a charitable remainder unitrust, the GSTT due shall be paid by the transferee.

True False

A taxable termination occurs when a trust loses its tax-exempt status.

True False

In the case of a taxable termination, the trustee must pay the GSTT due.

True False

A direct skip is an outright transfer from a transferor to a skip person.

True False

In the case of an outright direct skip gift, the transferor pays the GSTT due.

True False

A skip person is someone who is still a minor, which in many states is 17 and under.

True False

If a charitable remainder unitrust is set up for the grandchildren of the transferor, the income distributions would constitute taxable distributions.