The current generation-skipping transfer tax has been a part of our system for over 30 years and yet it is still a topic that confounds many advisers. Each taxpayer may elect to allocate the GST exemption during life or at death or it may be automatically allocated if the taxpayer does not elect out of the complex automatic allocation rules. While most taxpayers are now exempted from GST tax (until the scheduled reversion in 2026), even the use of the increased GST exemption can be complicated.

Carol Harrington passed on some basics and practical tips, as well as some common misconceptions, that advisers should know about in the allocation of GST exemption.