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If only a small portion is being left to the grandchildren then the generating skipping tax (GST) will not be incurred as the GST exemption amount in 2008 is $2,000,000. The GST exemption amount is the same as the estate exemption amount and will change over the next 3 years as the estate exemption amount changes.
See pages 1 and 25 - http://www.irs.gov/pub/irs-pdf/i706.pdf