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FREQUENTLY ASKED QUESTIONS > GLOSSARY OF TERMS > GENERATION SKIPPING TAX ("GST")

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If an individual (Parent) has a living child (Child) at the time when the individual makes a gift, or at probate of the individual’s will assets are bequeathed to, the living issue of such child (i.e. to the Parent’s Grandchild or Great-grandchild, etc.) the asset transferred is subject to a special tax up to a 40% rate called the generation skipping tax. An individual can transfer up to a $5,000,000 (indexed for inflation) during his or her lifetime without having to pay any GST.