Healthcare Provider Update: Healthcare Provider for ConocoPhillips ConocoPhillips provides its employees with access to various healthcare plans through third-party providers, primarily offering services via large insurers such as Blue Cross Blue Shield and UnitedHealthcare. These plans typically include comprehensive medical, vision, and dental coverage tailored to meet the diverse needs of its workforce. Potential Healthcare Cost Increases in 2026 As the healthcare landscape evolves, ConocoPhillips employees can expect significant premium hikes in 2026, driven by a perfect storm of factors impacting the Affordable Care Act (ACA) marketplace. With anticipated increases exceeding 60% in some states and the potential expiration of federal premium subsidies, many employees could face out-of-pocket costs soaring by up to 75%, compounding the financial pressure. The ongoing upward trend in medical costs, coupled with employers' shifts in cost-sharing strategies, may further challenge employees as they navigate rising healthcare expenses. Planning ahead and understanding these dynamics is crucial for effective budgeting and healthcare management in the coming years. Click here to learn more
'Thoughtful multigenerational planning can help ConocoPhillips employees navigate GSTT considerations more effectively, making it an essential part of preparing families for long-term financial transitions.' -- Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.
'Carefully structuring multigenerational wealth transfers can help ConocoPhillips employees stay aligned with GSTT rules and should be considered when discussing long-term family planning priorities.' -- Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
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Key concepts behind the generation-skipping transfer tax (GSTT).
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Common exemptions and exclusions that may lessen transfer tax exposure.
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Planning methods that can help families pass wealth across generations.
Important Takeaways on How to Transfer Wealth Across Generations
The generation-skipping transfer tax (GSTT) is relevant for any ConocoPhillips employees transferring wealth to grandchildren or other individuals that skip over your children's generation.
Both GSTT and gift or estate taxes may apply when transferring assets to heirs more than one generation below the transferor.
Exemptions may lower transfer tax liability if planning is structured thoughtfully.
Federal gift and estate taxes—applicable to transfers during life or at death—are familiar to many ConocoPhillips employees. However, when assets move to people more than one generation below the transferor, such as a gift from a grandparent to a grandchild, the federal generation-skipping transfer tax (GSTT) may also apply.
Generation-Skipping Transfer Tax: What Is It?
Transfers to “skip persons,” those more than one generation below the transferor or more than 37½ years younger, are subject to the GSTT. This federal tax applies in addition to any federal gift or estate tax due and equals the highest federal gift and estate tax rate in effect—a flat rate of 40%—which is relevant for ConocoPhillips employees engaging in multigenerational planning.
The GSTT was introduced in 1976 to address concerns that affluent families could shift assets in ways that bypassed estate taxes at each generational level. 1
Lifetime Exemptions and Gift Tax Exclusions
Transfers made during life or at death to anyone other than a spouse or qualified charity may be subject to federal gift or estate tax. Key exclusions include several that may benefit ConocoPhillips employees:
Annual gift tax exemption: In 2026, individuals may give up to $19,000 per recipient without incurring federal estate or gift tax. Couples may combine exclusions for a total of $38,000 per beneficiary. 2 For example, a married couple with two children could give $76,000 total ($38,000 to each child) annually without gift tax.
Qualified transfers: Payments made directly to educational institutions for tuition or to medical providers for medical expenses are not considered taxable gifts. There is no dollar limit on these transfers. 1
Lifetime unified exclusion: Individuals may transfer up to $13.99 million (or $27.98 million per married couple) during life or at death without federal gift or estate tax. 2 Lifetime gifts reduce the remaining exclusion available at death.
Transfers exceeding these exclusions are taxed at the top federal estate and gift tax rate of 40%.
Exclusions & Exemptions from GSTT
The GSTT has rules similar to traditional gift tax laws, which can influence planning for ConocoPhillips families:
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- Grandparents may give up to $19,000 directly to a grandchild in 2026 without triggering gift tax or GSTT.
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- Each individual has a $13.99 million lifetime GSTT exemption ($27.98 million per couple), though this exemption is not independent from estate or gift tax rules.
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Transfers above exemption thresholds are subject to a 40% GSTT.
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GSTT applies only at the federal level, although some states may impose their own estate or inheritance taxes.
When Does the GSTT Start to Apply?
The GSTT applies to three types of taxable events, all of which may arise in multigenerational planning for ConocoPhillips families:
Direct skips: Transfers made directly to a skip person or to a trust for their exclusive benefit. The transferor or their estate pays the tax.
Taxable distributions: Distributions from a trust to a skip person. The beneficiary pays the tax.
Taxable terminations: Occur when a trust interest ends and only skip persons remain as beneficiaries. The trustee pays the tax.
GSTT Exemption Allocations
Transfers—outright or to a trust—may qualify for GSTT exemption as long as the exemption is properly allocated. Once allocated, all future growth on those trust assets is generally free from GSTT, a strategy ConocoPhillips families may want to use.
For example, if a person contributed $10 million to an irrevocable trust for grandchildren in 2024 and allocated the GSTT exemption, and the trust later grew to $20 million, future distributions would not incur GSTT. 1
Methods for Lowering GSTT
1. 529 Plan Contributions
Contributions to 529 college savings plans are treated as completed gifts, even though account owners can change the beneficiary. Grandparents may “superfund” a 529 plan with five years of annual exclusions at once—up to $95,000 per beneficiary in 2025 or $190,000 per beneficiary for a married couple filing jointly 3 —which may interest ConocoPhillips retirees.
2. Dynasty Trusts
Dynasty trusts are irrevocable trusts designed to last across multiple generations. Some states allow long-term or perpetual trusts, while others limit trust duration under the “rule against perpetuities.” These trusts can combine GSTT planning with long-term asset preservation features and, when fully exempt from GSTT, future distributions or terminations can occur without additional GSTT 4 —an appealing option for extended family planning.
Concluding Remarks
Although GSTT planning can be complex, exemptions and structured transfers may help ConocoPhillips employees reduce or eliminate federal taxes on wealth passed to grandchildren or other skip persons.
The Retirement Group can assist you with wealth transfer planning and retirement income strategies. Call our team at (800) 900-5867 for guidance.
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Sources:
1. Fidelity Investments. “Understanding the Generation-Skipping Transfer Tax.” Fidelity , 3 Oct. 2025, www.fidelity.com/viewpoints/wealth-management/insights/generation-skipping-transfer-tax .
2. Internal Revenue Service. “ IRS releases tax inflation adjustments for tax year 2027 .” IRS.gov , 9 Oct. 2025.
3. Bendig, Erin. “How This 529 ‘Superfund’ Strategy Can Transform Your Estate Plan.” Kiplinger , 12 Sept. 2025, www.kiplinger.com/personal-finance/this-super-529-strategy-can-help-you-jumpstart-college-savings .
4. Investopedia. ' What Is a Dynasty Trust? ' by Will Kenton. 31 March 2025.
How does the retirement process at ConocoPhillips provide guidance to employees in selecting the most beneficial form of payment? In what ways can employees utilize available resources to maximize their understanding of the pension options offered by ConocoPhillips?
The retirement process at ConocoPhillips provides employees with various resources to guide them in selecting the most beneficial form of pension payment. Employees can access the "How to Choose the Best Form of Payment" link on Your Benefits Resources™ (YBR) to learn more about their options and determine what works best for their financial situation(ConocoPhillips_Your_Ret…).
What steps must be completed by employees at ConocoPhillips to ensure they initiate their retirement process accurately and avoid any delays? How crucial is the timing of these steps in determining the Benefit Commencement Date (BCD)?
Employees at ConocoPhillips must initiate the retirement process by requesting their pension paperwork 60-90 days before their Benefit Commencement Date (BCD). Timing is crucial, as missing deadlines may delay the BCD and associated payments. Completing all steps on time ensures that the retirement process flows smoothly(ConocoPhillips_Your_Ret…).
Given the complexities associated with the lump-sum pension payment option at ConocoPhillips, what considerations should employees take into account before electing this choice? How does the current interest rate at the Benefit Commencement Date impact the lump-sum amount?
Before electing a lump-sum pension payment, ConocoPhillips employees should consider the current interest rate at their BCD, as it directly affects the lump-sum amount. A higher interest rate typically reduces the lump-sum payment, making timing and rate awareness critical(ConocoPhillips_Your_Ret…).
In what ways can ConocoPhillips employees ensure their Pension Election Authorization form is completed correctly to facilitate timely pension payments? What are the implications of not adhering to the required notarized consent for married participants?
Ensuring the correct completion of the Pension Election Authorization form is vital for timely pension payments. For married participants, notarized spousal consent is required, and failure to provide this could result in delays or issues with payment processing(ConocoPhillips_Your_Ret…).
How does choosing direct deposit for pension payments at ConocoPhillips streamline the retirement process for employees? What should employees know about setup and changes regarding direct deposit after initiating their pension benefits?
Choosing direct deposit for pension payments simplifies the process for employees at ConocoPhillips, as it enables automatic payments to their bank account. Employees can set up direct deposit during their retirement process or update it at a later time(ConocoPhillips_Your_Ret…).
For employees considering rolling over their lump-sum pension payment from ConocoPhillips, what procedures should they follow to ensure compliance with IRS regulations and to avoid tax penalties? How can effective planning influence the success of this rollover?
Employees electing to roll over their lump-sum pension payment must follow specific IRS regulations to avoid tax penalties. Effective planning, such as obtaining rollover paperwork and adhering to IRS rules, ensures compliance and smooth fund transfer(ConocoPhillips_Your_Ret…).
What resources does ConocoPhillips provide for employees to calculate and project their retirement income? How can these tools empower employees to make informed decisions regarding their future financial security?
ConocoPhillips provides employees with tools such as the "Project Retirement Income" feature on YBR, empowering them to calculate and project their retirement income. These resources help employees make informed decisions about their financial future(ConocoPhillips_Your_Ret…).
How do deadlines play a pivotal role in the benefits process for retiring employees at ConocoPhillips, and what specific dates must be adhered to in order to avoid payment delays? Can you provide examples of consequences resulting from missed deadlines?
Deadlines are critical in ConocoPhillips' retirement process, as missing them can delay pension payments. For example, requesting pension paperwork after the 15th of the month can delay the BCD by a month, affecting the pension payout date(ConocoPhillips_Your_Ret…).
What are the added advantages for employees at ConocoPhillips who actively seek assistance or information from the Benefits Center during their retirement planning? How can this proactive approach enhance their overall retirement experience?
Employees who seek assistance from the Benefits Center during their retirement planning benefit from personalized guidance. This proactive approach ensures that they fully understand their options and deadlines, enhancing their overall retirement experience(ConocoPhillips_Your_Ret…).
How can employees at ConocoPhillips contact the Benefits Center to receive personalized assistance in navigating their retirement options? What specific resources and support can they expect when reaching out for help?
ConocoPhillips employees can contact the Benefits Center by calling 800-622-5501 or accessing YBR online. The Benefits Center provides personalized assistance and guidance, helping employees navigate their pension options effectively(ConocoPhillips_Your_Ret…).
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