Avoiding a GSTT Asteroid
Probate and Property, March/April 1999, Volume 13, Number 2
By Robert L. Moshman
In the estate planning universe of today, only a small percentage (perhaps 1%) of estates are taxable and still fewer trigger the generation-skipping transfer tax (GSTT). Yet the GSTT is a deceptive and deadly tax with which to reckon. It strikes without warning. Furthermore, its calculations are so inhumanely convoluted that the GSTT can send estates into a black hole of confusion from which no lawyer can extract them--or so it seems. Fortunately, lawyers and clients can manage the GSTT by observing a few basic principles. This article attempts to seek out the truth about the GSTT and arm estate planning lawyers with a collection of simple, practical strategies to address the GSTT effectively.