Generation-skipping transfer (GST) tax adds a complex and often misunderstood layer to estate tax reporting when wealth transfers skip one or more generations. Errors in GST reporting—or failure to properly allocate the GST exemption—can result in unexpected and substantial tax liabilities for estates and beneficiaries. This practical, example-driven course equips tax and estate professionals with a clear framework for identifying, reporting, and planning for GST obligations on the federal estate tax return (Form 706).
Participants will examine when GST tax applies in addition to estate tax, how and when Schedule R must be completed, and the critical differences between direct skips, taxable terminations, and taxable distributions. The course also explores effective exemption allocation strategies, common practitioner mistakes highlighted by IRS rulings, and advanced coordination techniques—such as the Reverse QTIP election—to help minimize current and future GST tax exposure.
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2029 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Publication Date: July 2026
Designed For
This course is designed for professionals responsible for estate planning, estate administration, and transfer tax compliance.
Topics Covered
- Overview of estate tax and generation-skipping transfer tax interaction
- Identifying GST events and skip persons
- Reporting direct and indirect skips on Form 706, Schedule R
- Taxable distributions and taxable terminations
- Allocating the GST exemption to reduce long-term tax exposure
- Using the Reverse QTIP election in marital trust planning
- Common reporting errors and IRS focus areas
Learning Objectives
- Identify transactions that trigger generation-skipping transfer tax in addition to estate tax
- Determine when Form 706, Schedule R must be completed
- Differentiate between direct skips, taxable distributions, and taxable terminations
- Calculate GST tax liability for taxable distributions and terminations
- Apply GST exemption allocation strategies to minimize current and future transfer taxes
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
A general understanding of estate tax will be helpful before taking this course.
Advance Preparation
None
Instructor
Klaralee R. Charlton
Klaralee Charlton is a Partner at 3i Law in Denver, Colorado. She practices fiduciary tax, estate administration, and business transactional law. As part of her practice, she guides clients through the process of administering a loved one’s estate including the collection, valuation, management and transfer of assets including financial accounts, real estate, and business interests with a focus on minimizing estate and income tax liability. Klaralee also works closely with trustees of ongoing trusts to ensure compliance and prepares clients’ fiduciary income tax returns annually.
Klaralee has written and lectured on topics including estate and gift tax, fiduciary income tax reporting and U.S. regulations governing the valuation of small family businesses. She is an active member of the Colorado Bar Association, Tax Section and Adjunct Profession at the University of Denver, Graduate Tax Program.
She earned her J.D. in 2011 from the University of Utah, S.J. Quinney College of Law, her LL.M. in Tax Law from the University of Denver in 2013, and her B.A. in political science in 2009 from Bryn Mawr College. She is admitted to practice in both Colorado and Montana.