Estate Tax Planning
Generation Skipping Transfer Tax
The generation skipping transfer tax (GST) is an often-overlooked tax imposed on transfer to a “skip person.” Generally, a skip person is any person that is two or more generational lines below the donor (e.g., grandchildren), assuming the middle generation is still living. These transfers can occur directly (i.e., direct gift to grandchildren) or placing items in a trust where the grandchildren are beneficiaries.
Fortunately, there are exclusion amounts that allow an individual to give freely without worrying about the GST. In addition to the exclusion amounts, there are also tools that allow one to plan for potential GST tax consequences.
The GST tax is a very complex tax that can have serious implications if not properly addressed in an estate plan; make sure you have a reputable Cambridge estate tax planning attorney by your side!
If you are worried about potential GST consequences, please contact a Cambridge estate tax planning attorney today at 781-674-2562.