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HEET: Beneficiary - Generation Skipping Check Box

When entering General Info: Beneficiary Information, what does the check for Generation-skipping mean, and when should it be used?

 

I have an irrevocable, non-grantor Health and Education Trust that calls out "Any distributions to trust beneficiaries who are skip persons be excepted from the generation skipping transfer tax under section 2611(b)(1) of the Internal Revenue Code."

 

The current beneficiaries are two generations from the originator of the trust.  Because there is a non-skip person beneficiary (Charity), there is not a taxable termination to the trust for Generation-Skipping Tax purposes.

 

Should the Skip-Person check be put on these beneficiaries in this situation?

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2 Replies

HEET: Beneficiary - Generation Skipping Check Box

Duplicate

HEET: Beneficiary - Generation Skipping Check Box

@Anonymous_I am assuming your "duplicate" is to your response on HEET: Charitable Beneficiary or Charitable Donation? recommending that "Frankly, you should seek professional tax guidance for this scenario. "

 

I am spot checking my CPA because I have always had a few questions and he has not provided satisfactory answers.  So, I am asking the forum for additional thoughts.

 

Since the beneficiaries are skip-persons of the person who set up the trust, I would have selected the skip person box.  However, my CPE has never selected this option.

 

I have interpreted this that because it is a trust not intended for skip-person distributions, the CPA has not selected this.  However, the literature is vague, and I could also see selected the skip-person option.

 

I am curious to know if there is a clear determination or guidance on this selection.

 

I am also interested to know if anyone knows what this selection actually does besides move a checkmark.

 

I would appreciate thoughts and comments from the community.

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