GST Tax Calculation: A Deeper Level of Tax Precision

Today we’re enhancing Luminary’s tax engine and Estate Waterfall with GST-aware calculations. Building on the workflows you already use, our tax engine automatically draws down GST exemption and calculates GST tax for both lifetime gifts and transfers at death—providing a more complete, accurate picture of multi-generational outcomes without any extra effort from you.

The Value, and Friction, of Multi-Generational Planning

Generation-skipping transfer (GST) considerations surface constantly in sophisticated plans—whether it’s gifts to grandchildren or transfers into non-exempt or mixed trusts, GST tax planning can be extremely complex. Tracking exemption usage and tax impact across all entities and beneficiaries is time-consuming and easy to miscalculate when it lives in spreadsheets or fragmented notes. The cost isn’t just time; it’s the risk of missing opportunities to optimize taxes and beneficiary outcomes.

That’s why we’ve enhanced the Estate Waterfall to model GST tax directly in the flow of the plan. Instead of stitching together notes, overrides, and manual tallies, advisors can now rely on consistent and precise GST-aware math that reflects beneficiary generation levels, trust GST status, and transfer timing. The outcome is the same modeling experience you know—now with greater precision for multi-generational outcomes.

Built-in Precision Where It Counts

We’ve strengthened the Estate Waterfall to handle GST tax logic automatically as you model scenarios—tightening the loop between inputs and tax outcomes.

• Automatic calculations: Whether you’re modeling ongoing gifts or distributions at death, simply specify the GST tax status of distributing entities (exempt, non-exempt or mixed) and the recipient type (e.g., G3), and the waterfall will automatically draw down available GST exemption and assess applicable GST tax as part of the overall calculation.
  
• Built-in guardrails: If inputs conflict—for example, a G3 transfer to a GST-non exempt entity—the waterfall flags the issue so you can resolve it fast. If a recipient’s GST tax status isn’t set, we’ll prompt you to complete the missing detail.
  
• Interrelated taxes handled: The waterfall accounts for the interplay of gift, estate, and GST tax elements for transfers during life or at death, helping teams avoid double-counting or gaps.
  
  

Benefits for You and Your Clients

Our improved calculation engine results in a more complete, precise and transparent analysis experience, empowering users to stay focused on planning strategy while Luminary handles the heavy math in the background.

• Confidence in the numbers: Automatic, consistent GST tax calculation reduces manual data reconciliation and review cycles.
  
• Time back for strategy: Less spreadsheet maintenance means more time for recommendations, education, and high-impact conversations.
  
• Clearer client narratives: A single, GST-aware view of outcomes helps clients see the “why” behind trust funding choices, gifting plans and beneficiary outcomes across generations.
  
• Scalable quality: Junior team members get reliable calculations; senior strategists can concentrate on plan design and optimization.
  
  

GST tax calculations and insights give our customers the clarity and confidence they need to illustrate estate plans that protect, preserve, and maximize their clients’ legacies.
— David Barnard, CEO @ Luminary

See for Yourself

Want a tour? We’d love to show you how GST-aware calculations elevate your modeling and client deliverables. Schedule a demo to see Luminary in action and explore how our platform helps firms deliver more personalized, scalable, trust & estate services—backed by tax precision your whole team can trust.

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