Estate & Trusts calculator
Could this transfer use GST exemption or create generation-skipping tax?
Screen a transfer for unused GST exemption, inclusion ratio, and possible federal generation-skipping tax exposure.
Before you calculate
Could this transfer use GST exemption or create generation-skipping tax?
Generation-skipping transfer tax can apply to a direct transfer, a trust distribution, or the end of a trust interest when value moves to a skip person. This calculator uses the entered exemption allocation to show an inclusion ratio and tentative 2026 exposure without assuming that an annual exclusion or automatic allocation applies.
Before you act on the number
Use the result to identify which assumption needs verification, then bring that question to the professional helping you make the decision.
Transparent method
Identify the event as a direct skip, taxable distribution, or taxable termination because the taxpayer and return can differ.
Subtract only an annual-exclusion amount affirmatively confirmed by counsel, then divide allocated GST exemption by transfer value to derive the inclusion ratio.
Multiply the taxable event amount by the inclusion ratio and the 2026 maximum 40% rate, then show remaining exemption after prior use and the entered allocation.
Common questions
The federal generation-skipping transfer tax exemption is $15 million for 2026, separate from the act of allocating it on the proper return.
In simplified form it is one minus the applicable fraction created by allocated GST exemption divided by transfer value. A fully exempt trust generally has an inclusion ratio of zero.
The applicable rate is the maximum federal estate-tax rate multiplied by the inclusion ratio. The maximum rate is 40% in 2026.
No. The GST annual exclusion has special rules, and many trust gifts do not qualify even when a gift-tax annual exclusion may be available.
Sources
Want the fine print? See sources, methods, and limits.