how much is the generation skipping transfer tax 
in the past the gstt has been hefty ranging from 35 to 77 9 the current rate which has been in effect since 2014 is 40 however the tax cuts and jobs act dramatically lessened the estates that might be affected by it for 2022 the federal estate gift and gstt exemption is 12 06 million for each individual 12 92 million in 2023 and 24 12 million for married couples 25 84 million in 2023 more than doubling the pre tcja limit of 5 49 million for individuals 23some states also collect generation skipping transfer taxes generally the ones that impose their own estate taxes 10only the value of a person s estate that is in excess of the applicable exemption is subject to an estate tax at death or the gstt at that flat rate of 40 so only aggregate gifts and bequests to a skip person in excess of 12 06 million in 2022 12 92 million in 2023 would be subject to the 40 flat generation skipping transfer tax 3the gstt is assessed when the gift or property transfer is made gsts can occur before or after the death of the transferor while still alive the transferor can give the gift directly to the skip person but upon death the transferor s will may either stipulate that property is bequeathed to a skip person or it may call for the establishment of a trust from which distributions will be made form 709 is used to report both gst taxes and transfers whereby federal gift taxes are due 11gstt strategiesmost beneficiaries will avoid the gst tax because the estates they inherit will be worth less than the government provided estate tax credit the gstt exemption is very high as noted above however in cases where the tax could apply transferors can create dynasty trusts which are designed to avoid or minimize estate taxes with each generational transfer by parking assets in the trust and making specified distributions to each generation the corpus of the trust isn t subject to estate taxes with the transfer 