Key Considerations with Generation-Skipping Transfer Tax

On this episode, join Partners Erin Nicholls and Michael Clear as they discuss key considerations when addressing Generation-Skipping Transfer (GST) Tax. With a particular focus on interesting planning opportunities and things to look out for when addressing GST tax. Erin and Michael emphasize the importance of thinking strategically about GST tax and its effects on estate planning. For example, if gifts to a grandchild are in the form of qualified education or medical expenses paid directly to the educational organization or medical provider, the gifts may qualify for the “Med-Ed Exclusion” and not be subject to GST tax. Also, in addition to the more well-known gift tax annual exclusion, each person has a GST tax annual exclusion amount that they may allocate to gifts made to certain individuals, thereby potentially qualifying these gifts as free from gift and GST tax. Keep in mind that planning for GST tax can be complicated, so tune into this week’s episode for an overview of different ways to consider GST tax in estate planning.