This part is known as the “Generation Skipping Transfer Tax Law.”
Generation Skipping Transfer TaxDefinitions
Section § 16700
This section is the title of the law focused on taxing certain transfers of wealth that skip a generation, such as gifts or inheritances given to grandchildren instead of children.
generation skipping transfer tax wealth transfer
Section § 16701
This section states that unless the situation obviously needs a different interpretation, the definitions in this chapter should be used to understand how the rest of the part is applied.
Except where the context otherwise requires, the definitions given in this chapter govern the construction of this part.
definitions interpretation construction
Section § 16702
A 'generation-skipping transfer' refers to certain transfers of property that are taxed under federal law. This includes situations where the original person giving the property either lived in California when the transfer happened or the property being transferred is located in California, whether it's real estate or personal property.
“Generation-skipping transfer” includes every transfer subject to the tax imposed under Chapter 13 of Subtitle B of the Internal Revenue Code of 1986, as amended, where the original transferor is a resident of the State of California at the date of original transfer, or the property transferred is real or personal property in California.
generation-skipping transfer property transfer Internal Revenue Code
Section § 16703
An "original transferor" is someone who gives away property through a grant, gift, trust, or will, triggering a federal generation skipping transfer tax, according to the Internal Revenue Code.
“Original transferor” means any grantor, donor, trustor or testator who by grant, gift, trust or will makes a transfer of real or personal property that results in a federal generation skipping transfer tax under applicable provisions of the Internal Revenue Code.
original transferor grantor donor
Section § 16704
This law defines what is meant by 'federal generation-skipping transfer tax.' It refers to a specific tax outlined in the Internal Revenue Code that applies when wealth or assets are passed down to a generation that is two or more levels below the person transferring the assets.
“Federal generation-skipping transfer tax” means the tax imposed by Chapter 13 of Subtitle B of the Internal Revenue Code of 1986, as amended.
generation-skipping transfer tax Internal Revenue Code wealth transfer
