GST Tax May Apply to Certain Transfers from Irrevocable Trusts- December 14, 2006 Taxpayers who created certain irrevocable trusts prior to 1985 may want to reconsider passing those assets to their grandchildren. Last month the IRS convinced the US Tax Court to rule that these pre-1986 trusts cannot be used to pass wealth from the grandparent to grandchild without subjecting the transfer to the generation skipping transfer tax (GST tax) which is currently a 46% tax. This is only applicable to trusts that provide a grandparent to direct that the assets pass to the...http://www.colorado-estateplanning-attorney.com/2006/12/gst-tax-may-apply-to-certain-trans... |