What is a Generation Skipping Trust?
Many of our clients want to protect their grandchildren in addition to their children. There is a tool we can utilize called a "generation skipping trust". What is the purpose of this kind of trust? A generation skipping trust will protect your heirs from things like accidents, lawsuits and divorce. You can employ this measure for as many generations as you would like and they are better know as generation skipping transfer tax exempt trusts and they spread your wealth for many years to come. While this is a desirable result for many families, the heirs will need to keep certain tax and accounting records and file a trust tax return each year. This is a relatively inexpensive insurance mechanism that will still ensure that your assets will be perpetuated for many years. This is a complicated technique that isn't right for everyone. If you have significant wealth, a family business or a vacation home, this is a measure you should definitely consider. If you have questions about sophisticated estate planning in Pennsylvania, call David M. Frees at 610-933-8069 or email him directly at [email protected] to learn more.