Predeceased ancestor exception
Certified Financial Planner glossary · Certified Financial Planner
Definition
The rule moving a grandchild up a generation for GST purposes where the intervening parent has died.
Predeceased ancestor exception in plain English
Grandparents leave assets to a grandchild after that child's parent has already died, and someone frets about an automatic GST tax hit. The predeceased ancestor exception moves the grandchild up a generation for GST purposes when the intervening parent has died, so the transfer is often treated as if it skipped one fewer generation. Restate it cleanly: the rule moves a grandchild up a generation for GST purposes where the intervening parent has died. Watch for distractors that still apply skip-person treatment as if the parent were alive.
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