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Chisholm Law Group, LLC

Schedule Your Consultation: 844-991-1392

Chisholm Law Group, LLC
Schedule Your Consultation

Protecting Your Legacy With Generation-Skipping Transfer Tax Planning

Last updated on August 1, 2025

Thinking about the future means planning not only for your children but also for the generations that follow. This includes planning around the generation-skipping transfer tax, or GSTT. The GSTT applies when you transfer assets to your grandchildren or others who are more than one generation below you. 

At Chisholm Law Group, LLC, we work to make your legacy last. Since 1986, our attorneys and lawyers have helped individuals, families and businesses make smart decisions about their estates. Our Bethesda tax attorneys draw from decades of experience to help you minimize the impact of the GSTT on your assets.

How Does The GSTT Apply?

The federal government established the GSTT to prevent wealthy individuals from circumventing the estate tax by passing assets to their grandchildren or other so-called skip persons. A skip person is typically a grandchild or anyone at least 37.5 years younger than you. The IRS applies this tax in addition to other estate or gift taxes. Some examples of when GSTT might apply include:

  • Making a direct gift to a grandchild
  • Distributing assets from a trust to a great-niece or nephew
  • Leaving property in your will to someone not in your direct line of descent

Current federal law allows a lifetime exemption for GSTT. The exemption is currently set at $13.99 million per individual, meaning gifts or bequests under this amount can avoid the tax.

Strategies For Minimizing GSTT

There are several ways to reduce the impact of GSTT and preserve more of your wealth for future generations. We help you consider strategies such as:

  • Creating dynasty trusts to keep assets in the family
  • Making lifetime gifts rather than posthumous gifts
  • Using annual exclusion gifts to transfer smaller amounts each year

Each option has benefits and trade-offs. We work closely with you to develop a plan that respects your wishes and minimizes tax burdens. Our goal is to help you provide for your family’s future while supporting the causes and people you care about most.

Discuss GSTT Guidance With A Maryland Tax Lawyer

Our team stands ready to help you make the best decisions for your legacy. To learn about minimizing the GSTT, please schedule a consultation by calling 844-991-1392 or by using our online contact form.