For those interested in generational wealth:
In the case of traditional types of trusts, assets are typically exposed to estate taxes. By setting up a GST trust, you get to avoid taxes that are normally assessed if your children were to inherit your assets. However, it should be noted that Congress enacted a generation-skipping (GST) tax to close this loophole that families discovered. Any distributions from a GST trust is subject to the 40 percent GST tax in addition to the general 40 percent gift and estate tax. Luckily, the current threshold is at $11.7 million. Unless you’re ultra-wealthy, your estate won’t owe any taxes.
Love those GST's with a 11.7 million threshold.