Q: I have a question about Generation Skipping Transfer tax.
If a dynasty trust has been created and all of the applicable GST exemption has already been allocated, what can a beneficiary do to increase this exemption for future generations? Could the beneficiaries pull out the corpus that isn't GST exempt and put it back into the trust using THEIR GST exemption?
A: You use a power of appointment to include a portion of the trust corpus in the skip-person's estate subjecting it to estate tax and using their lifetime exemption.
or you can create a current gift through a sub-trust and lock in the current lifetime exemption before it drops in 2025.
This stuff is really complicated. I'd suggest hiring a professional.
1 user found this answer helpful
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