I currently live in Sioux Falls and want to modify my current estate plan. I keep hearing about the "generation-skipping" transfer tax. What is this?

The generation-skipping transfer tax is an extra tax charged on transfers made to the donor’s grandchildren or later descendants that exceed the lifetime exemption.

This tax is also unified with the estate tax and gift tax schedules, with a maximum rate of 40% along with a lifetime exemption of $5.25 million in 2013. 

Scott Swier
Founding Member, Attorney At Law