Get Form C-107, Tax Tables For Succession And Transfer Taxes. Form C-107, Tax Tables For Succession And

What Triggers the Generation-Skipping Transfer Tax? The generation-skipping transfer tax is triggered when a person gifts another person an asset but skips a generation in doing so. For example, when a person gifts a home to their grandchild and skips their child.

Connecticut Inheritance Tax There is no inheritance tax in Connecticut. However, another state's inheritance tax may apply to you if your grantor lived in a state that has an inheritance tax. In Kentucky, for instance, the inheritance tax applies to all in-state property, even if the inheritor lives in another state.

The federal estate tax applies to the transfer of property at death. The gift tax applies to transfers made while a person is living. The generation-skipping transfer tax is an additional tax on a transfer of property that skips a generation. The United States has taxed the estates of decedents since 1916.

What is the generation-skipping transfer tax? The Connecticut generation-skipping transfer tax (GST) absorbs the allowable federal credit for GST tax. This is the lesser of the creditable state GST tax or 5% (. 05) of the Gross GST tax for federal purposes.

The tax is currently calculated at a flat rate of 40% (equal to the estate and gift tax rate) on transfers above the lifetime GST tax exemption amount ($12.92 million per individual in 2023). The exemption amount will grow each year based on inflation through 2025.