You’ve decided it’s time to transition some of your wealth out of your estate and establish an irrevocable trust for your grandchildren. You’re going to fund the trust with the maximum amount of money you can without triggering the gift tax or the generation-skipping transfer tax (GST tax). You’re hopeful that the trust will grow over time, and you know you have the option of making annual exclusion gifts, thereby shifting more of your wealth to your grandchildren over time without paying additional gift and GST taxes. Still, you wish it were more, but you’re uncomfortable with sending Uncle Sam a check just for the privilege of sharing your wealth with your grandchildren (and perhaps their issue). You think to yourself, “If only things could be different…”
To continue reading this article by Commonwealth’s Trust Company’s Vice President of Trust Operations, Charlie Horn, please click here.