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Bill
Bill, Enrolled Agent
Category: Tax
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Experience:  EA, CEBS - 35 years experience providing financial advice
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If I have a gross estate of 3.6 million dollars (max ...

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If I have a gross estate of 3.6 million dollars (max unified credit is available), and a small portion of the assets are left to grandchildren, will I have a Generation Skipping Tax? If so how much is that tax?
Submitted: 8 years ago.
Category: Tax
Expert:  Bill replied 8 years ago.

If only a small portion is being left to the grandchildren then the generating skipping tax (GST) will not be incurred as the GST exemption amount in 2008 is $2,000,000. The GST exemption amount is the same as the estate exemption amount and will change over the next 3 years as the estate exemption amount changes.

http://www.janmorrisonlaw.com/lawyer-attorney-1271011.html

See pages 1 and 25 - http://www.irs.gov/pub/irs-pdf/i706.pdf

 

 

 

Customer: replied 8 years ago.
Reply to Bill's Post: so the gst exemption is separate from the estate
exemption meaning the estate exemption does not have to be allocated to the gst.
Customer: replied 8 years ago.
so...the gst exemption amount is separte from the
estate ememption amount and the estate exemption
amount does not have to be allocated to the gst?
Expert:  Bill replied 8 years ago.
Yes, that is correct. The estate exemption amount for determining federal estate taxes does not have to be allocated to the GST exemption amount (even though they happen to be the same dollar equivalent amounts). If there is a GST then this amount is in addition to the federal estate taxes that may be due.
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