Preparing for the Next Generation - Navigating the Generation Skipping Transfer (GST) Tax

This presentation provides essential planning strategies for navigating the Generation-Skipping Transfer tax, which applies when wealth transfers skip a generation to avoid estate taxes. The session explores practical techniques for optimizing GST exemption allocation ($13.99M in 2025), including timely filing considerations, creating proper subtrust structures, and utilizing tools like reverse QTIP elections when estate and GST exemptions differ. It also addresses planning pitfalls like Estate Tax Inclusion Periods (ETIP) with GRATs or QPRTs, offering alternatives such as IDGTs for better GST protection when transferring appreciating assets to grandchildren or more remote generations.

Learning Objectives:

1. Identify the basic elements of GST tax and which transfers qualify as generation-skipping.
2. Apply GST exemption allocation strategies to maximize wealth transfers.
3. Evaluate when to use specialized planning tools like reverse QTIP elections and when to avoid ETIP-triggering techniques (GRATs/QPRTs) based on client GST planning goals.