Estate Planning

GSTT CALCULATION-

DIRECT SKIP AT DEATH

Nelson Goddard died and left his grandson $50,000 cash in his will. Under the terms of Nelson's will, this bequest is not reduced by any amount. Assume that Nelson used all of his $5.43 million exemption during his lifetime.

a. Calculate the generation-skipping transfer tax payable.

b. Would your answer be different if the grandson's bequest had to bear the burden of the GST tax on it?