What is a generation-skipping trust?

A generation-skipping trust is a type of trust created in Virginia that allows assets to be passed down to grandchildren or future generations without being taxed. This type of trust is beneficial to those who want to take advantage of estate tax avoidance. Typically, when a person dies, their property and assets are then transferred to their children. From there, the assets and property can then be passed down to the next generation. This multigenerational cycle is subject to estate taxes, meaning that each generation pays taxes on the assets they receive. With a generation-skipping trust, taxes are only paid one time, when the trust is created. In Virginia, generation-skipping trusts are created to benefit grandchildren and beyond. The trust can be used to provide financial support to these beneficiaries, and ensure that the money is properly used. This trust can also protect the beneficiaries from creditors. A generation-skipping trust is different from other trusts in that it can provide a secure source of income that can be passed down throughout the generations. A trust like this can also serve as a way to protect assets from taxation. This type of trust is a great way to ensure that family assets are protected and secure.

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What is a generation-skipping trust?

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