Which of the following statements is TRUE about transfer taxes in 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)

This question is about how transfer taxes use a single, inflation-adjusted exclusion amount to determine how much you can transfer without tax. In 2026, the generation-skipping tax exemption is set to be the same as the estate and gift tax applicable exclusion amount, and that figure has been increased by inflation to about 15 million dollars. So the statement that the generation skipping tax exemption is 15,000,000 aligns with the current framework where skip transfers are exempt up to the same unified exclusion.

The other choices rely on older or incorrect numbers. The estate tax exclusion has grown beyond 7.5 million due to inflation indexing, so saying it’s 7.5 million in 2026 isn’t accurate. The gift tax credit tracks the same unified exclusion, so it isn’t fixed at 7.5 million either. And the estate tax credit amount is tied to that same adjusted exclusion, not a separate fixed figure in isolation.