Estate Planning · Haute Lawyer Network
What Is a Generation-Skipping Trust?
Last reviewed: June 2026
A generation-skipping trust (GST) is an irrevocable trust that passes assets to grandchildren or more remote descendants — skipping a generation of estate taxation.
Without a GST, assets transferred to children are included in their taxable estates when they die — subject to estate tax before passing to grandchildren. A GST eliminates this intermediate layer.
The federal GST tax exemption — $13.61 million per person in 2026 — can shelter transfers. The trust can provide income and principal to children during their lifetimes while assets ultimately pass to grandchildren free of estate tax in their hands.
Frequently Asked Questions
Who benefits during the children's lifetimes?
The trust typically provides income distributions and discretionary principal for health, education, maintenance, and support.
What is a dynasty trust?
A GST trust designed to last for multiple generations — potentially indefinitely in states that have eliminated the rule against perpetuities.
Do I need a large estate?
GST planning is most valuable for estates that exceed or are likely to exceed the estate tax exemption.
Can I be a beneficiary of my own GST trust?
Generally no — that would cause trust assets to be included in the grantor's estate.
What happens if a grandchild dies before the trust terminates?
The trust document specifies — typically passing the share to that grandchild's children or remaining grandchildren.
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