2024 GST Exemption
The 2024 GST Exemption is $13,610,000.
Effective 2024-01-01Source: 2024 Instructions for Form 709 (IRS)Verified 2026-08-29
Compared with 2023
| Item | 2023 | 2024 | Change |
|---|---|---|---|
| Lifetime GST exemption | $12,920,000 | $13,610,000 | +$690,000 (+5.3%) |
Who it applies to
Donors who make generation-skipping transfers (transfers to skip persons such as grandchildren) and must file IRS Form 709 to report those transfers or to allocate their lifetime GST exemption.
What changed this year, and why
The lifetime GST exemption for 2024 is $13,610,000, up from $12,920,000 in 2023. The exemption is indexed annually for inflation and applies to generation-skipping transfers reported on IRS Form 709.
Common questions
- What is the GST exemption used for?
- The lifetime GST exemption is a federal tax exemption that shields a certain amount of property transferred to a skip person (such as a grandchild) from the generation-skipping transfer tax. It is reported on IRS Form 709, Schedule D.
- Is the GST exemption portable between spouses?
- No. The lifetime GST exemption is the same for every donor regardless of marital status. Unlike the gift and estate tax exclusion, it cannot be shared or transferred between spouses.
Every amount on this page is a published figure rather than yours. The GST exemption headroom takes the number you enter and works it out against them, showing which published figure it used.
Which transfers the GST tax reaches
The generation-skipping transfer (GST) tax on Form 709 applies only to inter vivos direct skips. An inter vivos direct skip is a transfer made during the donor's lifetime that meets all three of the following requirements: it must be subject to the gift tax, it must be of an interest in property, and it must be made to a skip person. A transfer qualifies as subject to the gift tax only if it is required to be reported on Schedule A of Form 709 under the gift tax rules in the instructions, including the split gift rules. Certain transfers are therefore not subject to the GST tax at all - these include transfers to political organizations, transfers to certain exempt organizations, transfers that qualify for the medical or educational exclusions, transfers that are fully excluded under the annual exclusion, and most transfers made to a spouse. All three requirements must be satisfied before a gift is subject to the GST tax.
The GST tax you must report on Form 709 is that imposed only on inter vivos direct skips. An inter vivos direct skip is a transfer that is: • Subject to the gift tax, • Of an interest in property, and • Made to a skip person. All three requirements must be met before the gift is subject to the GST tax.
2024 Instructions for Form 709 (IRS)
The exemption allocates itself to direct skips unless you elect out
For inter vivos direct skips, a portion of the donor's unused GST exemption is automatically allocated to the transferred property unless the donor elects otherwise. To elect out of the automatic allocation of exemption, you must file Form 709 and attach a statement to it clearly describing the transaction and the extent to which the automatic allocation is not to apply. Reporting a direct skip on a timely filed Form 709 and paying the GST tax on the transfer will prevent an automatic allocation. The lifetime GST exemption is $13,610,000 for 2024.
In the case of inter vivos direct skips, a portion of the donor's unused exemption is automatically allocated to the transferred property unless the donor elects otherwise. To elect out of the automatic allocation of exemption, you must file Form 709 and attach a statement to it clearly describing the transaction and the extent to which the automatic allocation is not to apply. Reporting a direct skip on a timely filed Form 709 and paying the GST tax on the transfer will prevent an automatic allocation.
2024 Instructions for Form 709 (IRS)
Allocating the exemption is a one-way decision
Once you allocate GST exemption to a transfer, that decision cannot be undone. The donor can apply this exemption to inter vivos transfers on Form 709, and the executor can apply the exemption on Form 706 to transfers taking effect at death. Once made, the allocation is final. This means you should carefully consider how much of your $13,610,000 lifetime GST exemption to allocate to each transfer, as you cannot reallocate it later if circumstances change or if you determine a different allocation would have been more advantageous.
The donor can apply this exemption to inter vivos transfers (that is, transfers made during the donor's life) on Form 709. The executor can apply the exemption on Form 706 to transfers taking effect at death. An allocation is irrevocable.
2024 Instructions for Form 709 (IRS)
Allocating to a transfer not reported on this return
You may wish to allocate GST exemption to transfers not reported on the current Form 709 return, such as a late allocation. To allocate your exemption to such transfers, attach a statement to Form 709 and entitle it "Notice of Allocation." The notice must contain the following for each trust or other transfer: clear identification of the trust (including the trust's EIN if known), the year the transfer was reported on Form 709 if this is a late allocation, the value of the trust assets at the effective date of the allocation, the amount of GST exemption allocated to each gift (or a statement that you are allocating exemption by formula), and the inclusion ratio of the trust after the allocation. Total the exemption allocations and enter this total on line 6.
You may wish to allocate GST exemption to transfers not reported on this return, such as a late allocation. To allocate your exemption to such transfers, attach a statement to this Form 709 and entitle it “Notice of Allocation.” The notice must contain the following for each trust (or other transfer). • Clear identification of the trust, including the trust's EIN, if known. • If this is a late allocation, the year the transfer was reported on Form 709. • The value of the trust assets at the effective date of the allocation. • The amount of your GST exemption allocated to each gift (or a statement that you are allocating exemption by means of a formula such as “an amount necessary to produce an inclusion ratio of zero”). • The inclusion ratio of the trust after the allocation.
2024 Instructions for Form 709 (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
2024 Instructions for Form 709 (IRS)
- Lifetime GST exemption
Every donor is allowed a lifetime GST exemption. The amount of the exemption for 2024 is $13,610,000.