What is a skip person for GST purposes?

A natural person assigned to a generation that is two or more levels below yours (grandchildren, great-grandchildren) or a trust where all interests are held by skip persons.

How does the GST exemption work?

Each person has a $13,610,000 (2024) GST exemption, separate from but equal to the gift/estate tax exemption. Allocating GST exemption to a generation-skipping trust shields all future growth from GST tax.

What is a dynasty trust?

A trust designed to pass wealth through multiple generations with minimal transfer taxes. By allocating full GST exemption at funding, the trust corpus can grow indefinitely without triggering GST. Perpetual trusts are allowed in select states.

Generation-Skipping Transfer (GST) Tax Calculator

Calculate potential GST tax on transfers to grandchildren or lower generations (skip persons). 2024 exemption: $13,610,000. Flat 40% rate on taxable GST transfers above exemption.

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$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate potential GST tax on transfers to grandchildren or lower generations (skip persons). 2024 exemption: $13,610,000. Flat 40% rate on taxable GST transfers above exemption. Use the gst tax result to inform your calculation.

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Generation-Skipping Transfer (GST) Tax Calculator

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Frequently Asked Questions

What is a skip person for GST purposes?

How does the GST exemption work?

What is a dynasty trust?