What is a generation skipping trust and how does it work?

In Oklahoma, a generation skipping trust is a type of estate planning trust that allows an individual to pass their assets to their grandchildren or other heirs without having to pass those assets through their children first. This type of trust allows the assets to “skip” a generation and go directly to the next generation. A generation skipping trust is an irrevocable trust meaning that once the trust is established the trustor or creator cannot make any changes to it. Any assets such as real estate, investments, and cash that are transferred into the trust are protected from estate taxes, creditors, and other litigants. The trust can remain active for many years, as long as the terms of the trust are followed. The trustee of the trust has control over the assets and is responsible for managing and distributing those assets according to the terms of the trust and the trustor’s wishes. Trustees are legally obligated to act in the best interests of the trust beneficiaries, which could include making prudent investments or distributing assets for their education or overall wellbeing. Generation skipping trusts can provide an excellent way to pass on wealth to future generations and help ensure that those assets are protected from taxes, creditors, and other liabilities. An estate planning attorney in Oklahoma can help you determine if a generation skipping trust is the right option for your estate.

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What is a generation skipping trust and how does it work?

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