889 / What credits are allowed against the GST tax?

For decedents dying before 2005, if a GST (other than a direct skip) occurs at the same time as and as a result of the death of an individual, a credit against the GST tax imposed is allowed in an amount equal to the GST tax paid to any state in respect to any property included in the GST, but the amount cannot exceed 5 percent of the GST tax.¹ The amendments made by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA 2001) sunset after December 31, 2012 so that this provision is no longer applicable. Transfers made to estates of decedents, gifts, or GST transfers are treated as if the amendments were never enacted.² However, under 2010 TRA, the GST tax rate for 2010 was zero, 35 percent for 2011 and 2012 and 40 percent for 2013 and beyond. The GST exemption was $5.49 million in 2017, and was raised to $11.18 million in 2018, $11.4 million in 2019, $11.58 million in 2020, $11.7 million for 2021, $12.06 million for 2022, $12.92 million in 2023, $13.61 million in 2024 and $13.99 million in 2025 (projected) under the 2017 Tax Act.³

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1. IRC § 2604.

2. IRC §§ 2604(c), 2664, as added by EGTRRA 2001.

3. Rev. Proc. 2016-55, Pub. Law No. 115-97, Rev. Proc. 2018-18, Rev. Proc. 2018-57, Rev. Proc. 2019-44, Rev. Proc. 2020-45, Rev. Proc. 2021-45, Rev. Proc. 2022-38, Rev. Proc. 2023-34, Rev. Proc. 2024-40.