Lucky Number 13: Clear Up 13 GST Tax Misconceptions

Estate planners have heard the list of complaints surrounding the Subtitle B, Chapter 13 of the IRC, also known as the generation-skipping transfer tax’s (GST) introduction into the Code—it is nonsense, too complicated, and frightening. The naysayers, however, are missing that the GST tax is rich and nuanced in its applications—but often misunderstood. Knowledge about gift and estate tax concepts can produce erroneous conclusions if applied to certain aspects of the GST. Instead, estate planners should get to know the GST tax a little better, become comfortable with some of its key provisions, and educate the families who may be affected by the tax.