How Does a Generation Skipping Trust Work?
A. Instead of the beneficiary owning the assets, a trust for the beneficiary’s lifetime benefit will own them. The Lifetime Benefit Trust and its terms are set out in the trust of the deceased person who left the assets. The Lifetime Benefit Trust will have its own Federal Tax Identification Number, which will be used instead of the social security number of the beneficiary to report income earned by the trust assets. Title to the trust assets will be in the name of the trustee of the trust in his or her capacity as Trustee of the Lifetime Benefit Trust.
