Jan 1, 2011 12:00 PM

Why the “G2” proposal would be a step in the wrong direction

By Daniel G. Worthington & Daniel D. Mielnicki

While multi-generational trusts have been used in the United States for many decades, they gained more notoriety when Congress passed the generation-skipping transfer (GST) tax in 1986.¹ Wisely, Congress provided an exemption from the GST tax so that grandparents could pass a limited amount, either outright or in trust, to their grandchildren, great-grandchildren or other “skip persons.”²

Multi-generational trusts have been a popular planning vehicle for families because they provide tremendous planning flexibility. These trusts not only permit families to preserve wealth for several generations, but also they provide the family, through the trustees, the freedom to make choices about family governance, education and values that weren't practical when using the more arcane trust forms. Multi-generational trusts not only encourage business continuity, new capital creation and prudent investment, but also they cultivate charitable giving and a stronger sense of family and community responsibility in both participation and governance.³

Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

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Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

E-Newsletter Signup

2011 Trust Glossary

Click here to download the 2011 Trust Glossary

50 Years Ago This Month

Click here to read the issue.

50 years ago, in May 1962, we featured articles such as: "Future of Canadian Trusteeship" by Arthur H. Mingay", "Training Trust Employees" by Ian M. Marr, "What is a Trust Officer?" by Eric J. Brown, and "Selling Services" by Donald I. Webb.

Conrad Teitell's Guide to Tax Benefits For Charitable Gifts

Click here to view the most up to date guide (September 2011)

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