Generation Skipping Tax does not apply for spouse regardless of age.

Generation Skipping tax came to mind in thinking about the $474 million that Anna Nicole Smith stands to gain from her husband who was about 63 years older than her upon their marriage. Generally in Florida as well as all other states if someone gives a large amount of property (in excess of $1.5 million in 2005) to a person who is more than 37.5 years younger than them and it does not qualify for an exception such as a predeceased parent exception when giving property to a grandchild who parent has previously died then a generation skipping tax will be owed equal to the highest estate tax rate. If that were to apply there would be $474 million subject to a tax of about 48% tax.

She will not be subject to tax of nearly $240 million dollars for generation skipping tax though because for generation skipping tax purposes a wife is always considered in the same generation as the spouse. There is also an unlimited marital deduction from estate and gift tax during a marriage and at death for monies which are received by a spouse. This money would therefore not be received until her passing and then only if she owns it and does not transfer it to another spouse.