Which of the following statements correctly states the generation-skipping tax exemption for 2026?

• A. The generation skipping tax exemption is $15,000,000.
• B. The applicable exclusion amount for estate tax increased to $7,500,000.
• C. The applicable credit amount for gift taxes is $7,500,000.
• D. The applicable credit amount for estate taxes is $15,000,000.

Answer: (A)

The key idea is that the generation-skipping tax exemption is the amount you can transfer to a skip person (like a grandchild) without paying GST tax. This exemption is not a separate cash amount you pick; it follows the same pool as the estate and gift tax exclusions—the unified exclusion that shelters transfers from tax. That exclusion is indexed for inflation, and in 2026 the amount reached 15,000,000 per person. So transfers to skip persons up to 15 million are tax-free under GST, and amounts above that would be taxed. That’s why the statement stating 15,000,000 matches the 2026 GST exemption. The other options mix in different numbers and credits that don’t reflect the GST exemption amount itself, which is grounded in the applicable exclusion for estate and gift taxes.