IRS Generation-Skipping Transfer Tax Rules Ease Request Process

The IRS’s final rules detailing when taxpayers can get more time to use the generation-skipping transfer tax exemption streamlines the process of requesting that extension.

A 40% GST tax applies generally when taxpayers transfer wealth to grandchildren if the amount given totals more than $13.6 million, the 2024 exemption amount. Taxpayers can elect which gifts qualify for that exemption. These rules govern when they can change certain GST elections retroactively, known as granting relief.

The IRS received only five comments when the proposed regulations came out in 2008.

The rules released last week come amid increased interest in estate and ...