GSTT Planning is possibly going to be a "listed" transaction

A recent IRS proposal to make all Generation Skipping Transfer Tax planning a "listed" transaction, meaning that it would have to be reported to the IRS.

Generation Skipping Taxes are taxes that generally can occur on transfers made from a person to their grandchildren and future generations. Each person has the ability to exempt up to $3,500,000 of their assets from the Generation Skipping Transfer Tax

If this does indeed go into effect it will require estate planners, including financial planners and accountants, to become very careful when planning for large estates.

I will still likely advise clients to take advantage of all the perfectly legitimate ways to reduce Generation Skipping Transfer Taxes. However, all estate planners need to be aware of these proposals and plan accordingly.