A Generation-Skipping or “GST” trust can be a good way to keep assets out of the taxable estate of a beneficiary and yet still allow them to be used for the beneficiary’s benefit during life. Having this type of trust would essentially help one avoid paying estate taxation upon the death of that beneficiary. Read on to learn more about this type of trust and whether it might make sense for you.
People often believe that trusts are unchangeable documents written in stone. In fact, this is one of the big misunderstandings regarding Estate Planning. The only one way to change a trust is by going to court. The process isn’t as difficult as one may think. Irrevocable trusts often can be modified under the Uniform Trust Code or a state law decanting. Read on to find out more details on what it takes to alter a trust.
In the past, trusts were made with little room for adjustment by the beneficiaries. Nowadays, trusts can be drafted to be quite flexible because no one knows what the future holds. There are three main ways to change the outcome of a trust. The first is giving the trustee the power to distribute a portion of your assets, although this is limited, it gives them room to adjust. The second is using Trust Protectors which is giving someone the power to stop distribution to the beneficiaries. Lastly, modifying a trust by going to court. This article examines several ways you can add flexibility in detail which will help increase the usefulness of your trust.