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Financial Planning, Wealth & Tax Advisory

Using the Federal Generation-Skipping Transfer Tax Exemption Now

The federal government follows a complex transfer tax system. Transfer taxes come in three separate forms; gift tax, estate tax, and generation-skipping transfer (GST) tax. The purpose of the GST tax is to ensure a transfer tax is imposed at each generation’s level. The GST tax acts as a supplemental tax by applying it in addition to either the estate tax or the gift tax.