Thursday, August 23, 2018
The Generation Skipping Transfer Tax (GSTT) imposes a tax on property transfers among generations of a family and is intended to prevent tax reduction when a senior generation “skips” over transfers to their children in favor of grandchildren.
The tax is one of the most complex elements of trust and estate planning, involving skip and “non-skip” persons, generation assignments, and determining which transfers are taxable and which are not. Planning has been further complicated with revisions of the federal estate and gift tax regime, including expiration of the GSTT safe harbor.
Understanding and planning for this tax is an essential part of planning for client estates, including those less than $5 million.
This program provides a framework for understanding and planning with the GSTT, including testamentary and inter vivos exemption planning, and compliance trips and traps.
Part 1 topics include:
- Framework of how the Generation Skipping Transfer Tax works
- GSTT vocabulary – skip and non-skip persons, taxable events, generation assignments
- Inclusion ratios sand effective minimum tax
- Exemption planning for maximum tax and financial benefit
- Relationship of GST regime to new estate and gift tax law
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