* Generation-skipping transfer tax has lapsed for 2010
* GST tax set to jump to 55 pct next year
* Need to make gifts directly to grandkids, not a trust
Wealthy U.S. families have the chance to make their grandchildren rich this year without paying hefty taxes, a rare opportunity overlooked in the estate tax shuffle.
A sweeping package of Bush Administration tax cuts expire this year but have not yet been replaced by a new policy. If Congress fails to take action soon, estate and generation skipping transfer (GST) taxes — both of which were eliminated this year — will jump to 55 percent in January with a $1 million exemption.
WEALTH MANAGER-Time running out to make U.S. grandkids rich | Reuters