2022 Trust Forum Presentations

WHAT DO PEOPLE CONFUSE ABOUT THE GST?

2. “I want the money to be for my children, not skip them so the money is for my grandchildren.”

a. It’s not the money that skips the generation (children), just the tax. b. - Child is trustee - Child takes what is needed for HEMS - Child has power to appoint to his/her children at death P C

No tax

GC

5

THE KEY TO THE GST – THE INCLUSION RATIO • Every trust has an inclusion ratio (“IR”). • IR dictates how much GST is due when there is a generation-skipping tax event. • In a perfect world, the IR=O or IR=1.

6