what triggers the generation skipping transfer tax 
the generation skipping transfer tax is triggered when a person gifts another person an asset but skips a generation in doing so for example when a person gifts a home to their grandchild and skips their child who pays the generation skipping transfer tax the generation skipping transfer tax is paid by either the grantor or the skipped beneficiary the grantor pays the direct generation skipping tax while an indirect generation skipping tax is paid by the skipped beneficiary the former is the most common scenario 