• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
< class="site-title" itemprop="headline">Flood & Masiuk LLC | Southampton Estate Planning Attorneys

Attorneys At Law

  • Home
  • Our Firm
    • About Our Firm
    • About The American Academy
    • Advantages of Working With Our Firm
    • Attorney and Staff Profiles
    • Speaker Connection
  • Estate Planning
    • Asset Protection and Business Planning
    • Estate and Gift Tax Figures
    • Estate Planning
    • Family-Owned Businesses & Farms
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Pet Planning
    • SECURE Act
    • Special Needs Planning Services
    • Trust Administration and Probate
  • Elder Law
    • Are You A Caregiver?
    • Coping With Alzheimer’s
    • Emergency Medicaid & Nursing Home Planning
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
    • Veteran’s Benefits
  • Resources
    • DocuBank
    • Elder Law Resources
      • Elder Law & Medicaid Definitions
      • Elder Law Reports
    • Estate Planning Resources
      • Estate Planning Checkup
      • Estate Planning Definitions
      • Estate Planning Needs Checklist
      • Estate Planning Reports
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top 10 Estate and Legacy Planning Techniques
    • Frequently Asked Questions
      • Frequently Asked Questions for Families Without an Estate Plan
      • Legacy Wealth Planning FAQ’s
      • LGBTQ Estate Planning FAQs
      • Trust Administration & Probate FAQs
    • LGBTQ Resources
    • Newsletters
    • Special Needs Resources
    • Trust Administration & Probate Resources
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
  • Reviews
    • Our Reviews
    • Review Us
  • Blog
  • Contact Us
Home / Estate Planning / What Is the Generation-Skipping Transfer Tax?

What Is the Generation-Skipping Transfer Tax?

May 15, 2015 by Joe Masiuk, Estate Planning Attorney

What Is the Generation-Skipping Transfer Tax?If you have been quite successful financially, you must be aware of federal transfer taxes when you are planning your estate. One of them is the generation-skipping transfer tax.

Before we look at this tax, we should explain the other taxes on asset transfers, because they are all unified.

The federal estate tax is the first transfer tax that we will cover. This tax is potentially applicable on postmortem asset transfers to anyone other than your spouse.

There is an unlimited marital deduction, and you can use this deduction to leave unlimited property to your spouse free of the estate tax, as long as your spouse is an American citizen.

The maximum rate of the estate tax is 40 percent, and the exclusion is $5.43 million in 2015. The exclusion is the amount that you can transfer tax-free, so most people are exempt from the tax.

Federal Gift Tax

There is also a federal gift tax, and it stops people from giving large gifts while they are living to sidestep the death tax. Because the gift tax and the estate tax are unified, the exclusion applies to lifetime gifting coupled with the value of your estate.

The 40 percent top rate applies to gift giving, and the marital deduction also extends to lifetime gifting.

Generation-Skipping Transfer Tax

Now that we have looked at the gift tax and the estate tax, we can provide a basic explanation of the generation-skipping transfer tax. This tax can be applicable on asset transfers to family members who are more than one generation younger than you are.

The generation-skipping transfer tax could also be applied on transfers to people who are not related to you who are at least 37.5 your junior. Once again, because these taxes are unified, the $5.43 million exclusion that we have in 2015 applies to the generation-skipping transfer tax as well.

Free Estate Tax Report

We have devoted considerable resources toward the creation of an electronic library. You can access the titles through this website, and these reports cover many different estate planning and elder law topics.

There is a report that takes an in-depth look at the federal estate tax and the other taxes that can be applicable on large asset transfers. This report is free, and it will provide you with a great deal of sound information.

To access your copy of the report, visit this page and follow the simple instructions: Free Estate Tax Report.

Take Action

Our firm can help if you would like to put an estate plan in place, whether you have transfer tax exposure or not. We offer free consultations, and you can send us a message through our contact page to set up an appointment: Bucks County PA Estate Planning Attorneys.

  • Author
  • Recent Posts
Joe Masiuk, Estate Planning Attorney
Joe Masiuk, Estate Planning Attorney
As a partner in the law firm of Flood & Masiuk, LLC, Joseph Masiuk is committed to, a practice which provides people of all ages and walks of life with thoughtful and comprehensive solutions in Estate Planning, which includes Elder Care, Medicaid and Special Needs Planning.
Joe Masiuk, Estate Planning Attorney
Latest posts by Joe Masiuk, Estate Planning Attorney (see all)
  • What Is the Difference Between a General and a Limited Power of Attorney? - May 24, 2015
  • What Is a QDOT Trust? - May 22, 2015
  • Do You Have to Impoverish Yourself to Qualify for Medicaid? - May 19, 2015

Filed Under: Estate Planning

About Joe Masiuk, Estate Planning Attorney

As a partner in the law firm of Flood & Masiuk, LLC, Joseph Masiuk is committed to, a practice which provides people of all ages and walks of life with thoughtful and comprehensive solutions in Estate Planning, which includes Elder Care, Medicaid and Special Needs Planning.

Primary Sidebar

Blog Subscription

Flood & Masiuk LLC | Southampton Estate Planning Attorneys

112 Lakeside Park
Southampton, PA 18966
Phone: (215) 322-6330
Fax: (215) 322-9199

MAP

map for Flood & Masiuk LLC office

Opening Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 5:00 PM

Footer

  • Disclaimer
  • Sitemap
  • Contact Us

© 2023 American Academy of Estate Planning Attorneys, Inc.

All Rights Reserved.
Attorney Advertisement

footer-logo
  • fb
  • twitter
  • linked-In