A generation-skipping trust (GST) can be a helpful estate planning tool that allows for ultra-high-net-worth individuals to transfer large sums of family funds directly to their grandchildren – skipping their direct children, and with it, allowing for reduced estate taxes, preserving family wealth over multiple generations.

A generation-skipping trust doesn’t necessarily mean the money is going to a grandchild. The law dictates that assets may be transferred to anyone who is at least 37 ½ years younger than the grantor and is not a spouse or ex-spouse. This strategy allows for the children of the grantor to avoid estate taxes that would normally be due by passing on the ability to receive these assets

In 2025, GSTs allow for transfers of up to $13.99M for single taxpayers or up to $27.98M for couples filing jointly. This tool allows ultra-high-net-worth families to take advantage of this unique and beneficial tool to preserve family wealth and reduce the amount of estate taxes due when transferring wealth to future generations.

Expert Guidance to Ensure Your Family’s Legacy Lives On for Generations

Altruist^™ has worked with many ultra-high-net-worth individuals, helping them implement generation-skipping trusts as part of their estate and wealth-transferring strategies. Look to Altruist^™  and our experienced trust managers who can discuss these kinds of strategies with you and determine if they’re right for your scenario and estate planning goals.