2022 Trust Forum Presentations

HOW THE GST “FIXES” THE PROBLEM

Rich Family

Poor Family

Estate Tax

Estate Tax

GST

Estate Tax

Estate Tax

GST

Rich and poor pay tax at each generational level…

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WHAT DO PEOPLE CONFUSE ABOUT THE GST? 1. The Unified credit and the generation-skipping tax exemption – both $12,060,000.

a. The unified credit avoids tax when the parent dies and assets pass to a trust for child.

tax avoided by united credit

$12,060,000 unified credit $12,060,00 GST exemption

P C

b. The GST exemption avoids tax when the child dies and the assets pass to grandchildren. $12,060,000 unified credit $12,060,00 GST exemption P

C

No tax

GC

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