GSTT Exemption

The GSTT exemption refers to the Generation-Skipping Transfer Tax exemption, which allows individuals to transfer a certain amount of money or assets to beneficiaries who are at least two generations younger, such as grandchildren, without incurring a federal tax on that transfer. For 2023, this exemption is set at over $12 million per individual. It aims to prevent wealthy individuals from avoiding estate taxes by skipping generations in their wealth distribution. Essentially, it helps preserve wealth for future generations while managing tax implications.