What is a generation-skipping trust?

A generation-skipping trust (GST) is a type of trust used in North Carolina to pass assets from one generation to the next without being subject to estate taxes. The trust can be used to provide children or grandchildren with assets that would otherwise be subject to estate taxes. GSTs can also be used to provide financial protection and security for your family across multiple generations. The trust allows you to ensure that the beneficiaries of the trust are taken care of in the event of your death. GSTs can also be used to minimize estate taxes, as any assets placed in the trust are not subject to estate taxes as long as they remain in the trust. GSTs can be set up with different conditions and stipulations. You can choose to provide for specific individuals or for general goals, such as education or even starting a business. You can also create a trust that provides for multiple generations, meaning that the trust assets will be available to not only your children, but also your grandchildren and great-grandchildren. In North Carolina, GSTs can be created to last for up to 150 years. They are also not subject to any state or federal estate taxes as long as they remain in the trust. This helps to ensure that the assets stay in the family and are not subject to taxation.

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What is a generation-skipping trust?

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