Better understanding the GST tax and exemption

Description

Abstract: The American Taxpayer Relief Act of 2012 (ATRA) permanently set the top gift, estate and generation-skipping transfer (GST) tax rates at 40%. And it kept the gift, estate and GST tax exemptions at an inflation-adjusted $5 million, which means a $5.25 million amount for 2013. But, while estate and gift tax planning tend to get the lion’s share of attention, GST tax planning can be essential for many affluent families. This article explains what factors trigger the GST tax and how to maximize the benefit of the GST tax exemption.