"Some trusts may be entitled to a refund."<br />Ryan Brown, media spokesperson for the Department of Revenue, said the office is reviewing the decision.<br />Minnesota resident<br />The case concerns four generation-skipping trusts
established by Reid and Ann MacDonald in 2009 when Reid MacDonald was a domiciliary of Minnesota that were funded with stock in Faribault Foods Inc., a Minnesota S corporation.
While all the branches [of Mellon conglomerate] operate independently, they've almost universally employed smart tricks that minimize taxes, including generation-skipping trusts
and making charitable contributions in stock.
"It may work through a number of channels including the inheritance of wealth and property, and may be aided by durable social institutions such as generation-skipping trusts
, residential segregation, and other demographic processes.
. The portability exemption that's now permanent for the estate tax does not apply to generation-skipping transfer taxes.
In addition to establishing generation-skipping trusts
, spouses can take full advantage of the Tax Act by coupling the new exclusion with gift splitting.
"While life insurance trusts are popular, I don't know that uncertainty or inability to allocate generation-skipping trusts
would prevent a sale."
 Other trust types include: generation-skipping trusts
, marital trusts, personal residence trusts, charitable remainder unitrusts, grantor retained annuity trusts, and 529 educational trusts.
This chapter discusses the generation-skipping transfer tax and planning with generation-skipping transfers, including the use of generation-skipping trusts
In addition, it was concerned that allowing existing trusts to default or "opt" into these new definitions of income would adversely affect their tax status as qualified terminable interest property trusts qualifying for the estate tax deduction, charitable remainder unitrusts, qualified S corporation trusts, grandfathered generation-skipping trusts
or intentionally defective grantor trusts.
Currently, no-tax or low--gift tax techniques are popular, including grantor retained annuity trusts (GRAT), charitable lead annuity trusts (CLAT), special needs trusts, and generation-skipping trusts
. A grantor can create a trust - living or testamentary - that transfers an income or remainder interest in property to second-generation beneficiaries (usually grandchildren).
For example, he points out that tax avoidance devices, like generation-skipping trusts
, in which income goes to one generation and capital to the next at some far-distant-future time, brings about a situation in which you can't really say at any given moment to whom the money belongs: you can say only that it belongs to "the family."