Don’t overlook generation-skipping transfer tax

Description

Abstract: In 2010, Congress raised the generation-skipping transfer (GST) tax exemption to $5 million through 2012. This provides a significant planning opportunity for those wishing to share their wealth with their grandchildren or other future generations. This article explains what a GST is and gives a brief history of the GST tax. It shows how to leverage the exemption and allocate it where it will do the most good. A sidebar offers an example of the GST tax exemption at work.