What is a generation-skipping trust?

A generation-skipping trust is a type of trust in Washington that allows you to transfer wealth to future generations without the assets being subject to estate taxes at each level. This means that your assets can potentially pass through multiple generations of your family without having to pay taxes at each level. To make a generation-skipping trust, you must designate a trustee to manage the trust assets, and then determine who will benefit from the trust. You can choose beneficiaries such as your grandchildren or other descendants. The trust can also remain flexible, allowing you to update its terms if you choose. Once the trust is set up, your designated trustee can manage the assets. The trustee will make sure that the trust is managed according to your wishes, making investment decisions and distributions to the beneficiaries. Generation-skipping trusts can be a great way to pass on wealth to future generations without having to worry about paying taxes. However, it is important to talk to a qualified trust attorney to ensure that your trust is set up in the most beneficial way for your family.

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What is a generation-skipping trust?

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