Similar to an Estate Tax, this is applied to financial gifts transferred down more than one generation. The recipients are commonly referred to as a "Skip Person," since the money they receive skipped one generation. The purpose of the tax is to prevent families from utilizing multi-generational gifting strategies in order to avoid estate taxes. There is usually an exemption, and all gifts below this amount will not be subject to the GSTT. As of 2022, the GSTT exemption is the same amount as the Estate Tax exemption. GSTT is assessed in addition to any applicable Estate Taxes.