The Married Person Generation Skipping Tax (GST) RLT provides the benefits of a Married Person QTIP Trust and additional features.

It is a Sole-Grantor trust designed for a married individual wishing to make distributions of principal to “skip” persons.

A transfer to a skip person means that no transfer tax was levied on the death of the first generation person; therefore, an additional (GST) tax is levied on such transfers.

A generation who should have paid transfer tax was “skipped” by the original transferor so an additional tax (GST) to the transferors estate will be levied.

The generation skipping tax is an additional tax (additional to estate tax). on assets transferred to skip persons.

The grantor/transferor is allowed a $1,000,000 exclusion from GST taxes – as indexed.

A GST Trust is for the grantor who wishes to provide a means of support to his spouse and/or children but wants the outright distributions to ultimately go to his grandchildren (or even great-grandchildren and beyond).

All the principal that would go to the skip persons may be used for the lifetime benefit of the grantor’s children and/or spouse.