Generation Skipping Tax
Learn about generation-skipping tax and how it impacts estate planning when transferring assets to grandchildren. Discover strategies to preserve family wealth.
What is the generation-skipping tax and when does it apply?
The generation-skipping tax (GST) is a federal tax that applies when assets are transferred to beneficiaries who are two or more generations younger than the transferor, such as from grandparents directly to grandchildren. This tax helps prevent families from avoiding estate taxes by skipping generations, and it applies to transfers exceeding the GST exemption amount.
