WHAT IS A GENERATION SKIPPING TRUST?
A Generation Skipping Trust is a Continuing Trust established for a child or other beneficiary which is intended to last for the beneficiary’s lifetime. Such a Trust would typically be established under an individual’s or couple’s Living Trust agreement. It should be noted that there is some confusing terminology as to Generation Skipping Trusts, or GST’s. The “Skipping” does not mean that the child for whom the trust is held does not benefit from the Trust. It is possible to give a child almost complete control and benefit from such a trust, but rather, the Skipping refers to the fact that the Trust will not be subject to estate tax at the child’s death. As discussed above, there are various reasons for establishing a Continuing Trust, which could include a trust lasting the beneficiary’s entire lifetime, to protect the beneficiary from himself or herself, and to reserve assets for specific use. However, even where parents feel completely comfortable with their children receiving thei
A Generation Skipping Trust is a Continuing Trust established for a child or other beneficiary which is intended to last for the beneficiary’s lifetime. Such a Trust would typically be established under an individual’s or couple’s Living Trust agreement. It should be noted that there is some confusing terminology as to Generation Skipping Trusts, or GST’s. The “Skipping” does not mean that the child for whom the trust is held does not benefit from the Trust. It is possible to give a child almost complete control and benefit from such a trust, but rather, the Skipping refers to the fact that the Trust will not be subject to estate tax at the child’s death. As discussed above, there are various reasons for establishing a Continuing Trust, which could include a trust lasting the beneficiary’s entire lifetime, to protect the beneficiary from himself or herself, and to reserve assets for specific use. However, even where parents feel completely comfortable with their children receiving thei
