Designed specifically to prevent skipping a generation’s worth of estate tax — a transfer straight to a grandchild has its own separate exemption and, once used up, its own flat tax rate.
How it works
Whatever a transfer to a skip person exceeds the remaining GST exemption is taxed at the flat top estate/gift tax rate — there’s no graduated bracket structure the way ordinary income tax has.
What this does not include
GST exemption allocation has its own complex rules, including automatic allocation to certain transfers and the ability to make (or not make) an affirmative allocation election — this calculator computes the tax on a given remaining exemption, not the allocation decision itself.
How to use this calculator
- Enter the transfer amount, remaining GST exemption, and the top tax rate.
Frequently asked questions
Does GST tax apply on top of estate or gift tax?
Yes — GST tax is a separate, additional tax layered on top of whatever estate or gift tax already applies to the same transfer.
Who counts as a “skip person”?
Generally someone two or more generations below the transferor — most commonly a grandchild, though certain unrelated individuals more than 37.5 years younger can also qualify.
Is the GST exemption the same as the estate tax exemption?
They’re set at the same dollar amount currently, but they’re separate exemptions tracked independently — using one doesn’t reduce the other.
