With record-high exemptions, the Generation-Skipping Transfer (GST) tax is often an afterthought, especially because this tax can be avoided or significantly deferred through dynasty trust planning. However, many older trusts, which were created before the enactment of the GST tax or with a much lower GST tax exemption, are now reaching the point of termination or division at the death of a first-generation beneficiary. These outcomes can create challenges in analyzing the application or grandfathering of the deferred or avoided GST tax.

This presentation will discuss common issues and blind spots that can occur when assisting trustees or beneficiaries with GST tax issues relating to older trusts.

Learning Objectives:

• Identify key parties to a trust that affect the Generation-Skipping Transfer (GST) tax at a basic and intermediate level


• Recognize common GST tax events that are applicable to a trust and reporting requirements for these GST tax events


• List factors affecting exemption or reduction of GST tax within a trust


• Evaluate the effect of certain transactions, transfers, and tax reporting events on the GST tax within a trust


• List strategies for mitigating GST tax in trusts that are not fully exempt from this tax