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Generation Skipping Trusts In the natural order of things, parents tend to leave their assets to their children. The children, in turn, leave assets to their children. When this happens, assets may.

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Disadvantages of a generation-skipping trust For those with large estates, there aren't many disadvantages to a generation-skipping trust, but one is that the trust is irrevocable, which means it cannot be changed or canceled.

A GST trust can be a good way to keep assets out of the taxable estate of the beneficiary, while still allowing the assets to be used for their benefit during life.

A generation-skipping trust (GST) is a legally binding agreement in which assets are passed down to the grantor's grandchildren—or anyone at least 37½ years younger—bypassing the next generation of the grantor's children.

The generation-skipping tax kicks in when someone gifts assets to a "skip person," either during their lifetime or after death. A skip person is someone two or more generations younger than the transferor. Grandchildren and great-grandchildren are the most common skip persons.

In the past, generation-skipping trusts were common, especially among the wealthy. For example, a grandfather would set up a trust that distributed only income (no principal) to his children. The trust principal would be distributed later to his grandchildren and future generations.

Form 706-GS(T) is used by a trustee to figure and report the tax due from certain trust terminations that are subject to the generation-skipping transfer (GST) tax.

A generation skipping trust is a fiduciary arrangement that is used to pass down assets and property to a later generation. The trustor, also called the settlor or grantor, skips over their own children to pass the inheritance to their grandchildren. The trust skips a generation, thus earning its name.

Because a generation skipping trust is irrevocable, the trust cannot be broken, modified, revoked or dissolved like a revocable trust, which can be changed or amended any time.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232