04/27/2026
Estate taxes stand to drain your family’s wealth every time one generation passes its assets down to the next. So, can you skip a round of taxes if you skip a generation—for example, grandparents transferring wealth to their grandchildren?
Unfortunately, no. The Generation Skipping Transfer Tax (GSTT) places a lifetime limit on how much can be transferred to persons at least two generations below the transferor before the tax is triggered. However, effective January 1, 2026, the amount of this exemption will be permanently raised to $15 million per individual, to be indexed for inflation after 2026, aligning it with the lifetime gift and estate tax exclusion.
As with that more familiar exclusion, using the GSTT exemption strategically to protect as much wealth from taxation as possible is more complex the more assets you have to shield. But it can be done. At Bridge Law, our Trusts & Estates team understands how to build your estate plan for maximum tax efficiency. To schedule your consultation, contact us today.
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