generation skipping

Are there any generation skipping concerns if an individual names a grandchild as the beneficiay for a Roth IRA?



Yes, the GST must be considered in this situation, although the exemption is unlimited in 2010 – unless Congress acts retroactively to restore the estate and GST tax.



Question- By naming Grandchild or child- does the IRA $$$$ in account escapes part of Estate and also estate tax?



No. The IRA continues to be included in the gross estate of the decedent IRA owner. Naming a grandchild as beneficiary will keep the assets out of the children’s estates, although the GST might come into play.



what is GST



See attached. Article was written a couple years ago. The estate tax and the GST are currently suspended and do not apply, but they are sure to be reinstated at some level by Congress, certainly no later than 1/1/2011 unless it is done retroactively to 1/1/2010.

http://www.life123.com/career-money/wealth-management/estate-taxes/gener



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