Delaware Tax Trap

Unless falling under an exception, exclusion or special rule, a generation-skipping transfer tax is imposed by IRC §2601 whenever property is transferred through or around one younger generation (such as the generation of the transferor's…

In many cases—but not all—the generation skipping transfer tax will be more expensive than either the estate or gift tax. Thus, estate planners need a mechanism by which the cheaper tax may be selected at the appropriate time and based on…