Generation-skipping transfer or trust

(redirected from Dynasty Trust)

Generation-skipping transfer or trust

A trust in which a principal amount is placed in a trust on the death of person A and is transferred to A's grandchildren when A's children die. The income from the trust goes to the children of person A while they survive.

Generation-Skipping Transfer or Trust

A trust into which assets are deposited and invested, but for different beneficiaries. That is, the assets of the trust are held on behalf of the grantor's grandchildren; they are divided among them when the grantor's children all die. On the other hand, income from the investment of those assets is distributed among the grantor's children. Generation-skipping trusts allow the grantor's assets to bypass estate taxes that the children would have to pay if the assets were directly transferred.
References in periodicals archive ?
A dynasty trust is often referred to as a "family bank" trust, a legacy trust, or a generation-skipping trust because it can be used to achieve many different goals.
The dynasty trust legislation was followed by adoption of New Hampshire's first Trust Code in 2004.
OTC: LANW), the leader in video interpretation services, announced today its Chairman of the Board Larry Sturtz has gifted 300,000 of his shares in Language Access into a family Dynasty Trust so future generations of his family can take advantage of its success.
New Hampshire directed trust advised by New Hampshire LLC and managed by New York resident George is a New York State resident and the beneficiary of his deceased father's irrevocable dynasty trust.
Inclusion of charities as beneficiaries in a generation-skipping dynasty trust.
It's also common to transfer life insurance policies to a dynasty trust.
STRATEGY #1: Dynasty Trust Planning A "dynasty trust" is an irrevocable trust designed to last for as long as possible under the state perpetuity laws.
Further, the grantor can also benefit by using a family limited partnership or dynasty trust (or both) in combination with an IDIT.
If a New Yorker properly creates a dynasty trust for others (such as descendants), whether during life or via a will; ff such trust is governed by South Dakota or Delaware law and properly located in either of those states; and ff none of the trustees of the trust are in New York and none of the trust's assets are in New York either, the trust itself can avoid all New York income taxes on its taxable income (including capital gains).
Other Travelers Life & Annuity estate planning products available on WebStory include supplemental income, family income trust, lifetime exemption trust, credit shelter maximizer and family dynasty trust.