In Defense of Multi-generational TrustsIn Defense of Multi-generational Trusts
While multi-generational trusts have been used in the United States for many decades, they gained more notoriety when Congress passed the generation-skipping transfer (GST) tax in 1986.1 Wisely, Congress provided an exemption from the GST tax so that grandparents could pass a limited amount, either outright or in trust, to their grandchildren, great-grandchildren or other skip persons.2 Multi-generational
Daniel G. Worthington & Daniel D. Mielnicki
While multi-generational trusts have been used in the United States for many decades, they gained more notoriety when Congress passed the generation-skipping transfer (GST) tax in 1986.1 Wisely, Congress provided an exemption from the GST tax so that grandparents could pass a limited amount, either outright or in trust, to their grandchildren, great-grandchildren or other “skip persons.”2
Multi-generational trusts have been a popular planning vehicle for families because they provide tremendous planning flexibility. These trusts not only permit families to preserve wealth for several generations, but also they provide the family, through the trustees, the freedom to make choices about family gove...
Unlock All Access Premium Subscription
Get Trusts & Estates articles, digital editions, and an optional print subscription. Choose your subscription now and dive into expert insights today!
Already Subscribed?