Generation-Skipping Trust Amendment Template

What Is the Generation-Skipping Trust Amendment?

This amendment restructures existing trusts to incorporate comprehensive generation-skipping transfer tax planning. It allocates your available GST exemption to trust assets, establishes separate exempt and taxable shares when partial allocation is appropriate, and creates distribution provisions that minimize GST tax while preserving wealth for grandchildren and beyond. The template addresses inclusion ratio calculations, qualified severance elections, and dynasty trust provisions that extend benefits across multiple generations.

The amendment provides trustee authority for GST tax administration including filing required returns, managing separate share accounting, and making strategic distribution decisions. It incorporates protective provisions for skip person beneficiaries, coordinates with existing trust terms, and includes contingent amendment authority for future tax law changes. Use this when you have trusts that will benefit grandchildren but lack proper GST tax planning.

 

 

Is This Generation-Skipping Trust Amendment Right for You?

You need this agreement if you're:

• Building multi-generational wealth that will pass to grandchildren
• Managing trusts created without GST tax planning provisions
• Approaching federal exemption thresholds across multiple generations
• Seeking dynasty trust structures that eliminate transfer taxes indefinitely
• Coordinating estate planning with substantial trust assets
• Planning distributions that span children and grandchildren

You definitely need this agreement if:

• Your existing trusts will distribute to grandchildren without GST planning
• You're facing 40% GST tax on top of estate tax
• Trust assets exceed your children's generation and lack exemption allocation
• You haven't allocated your $13.61 million GST exemption
• Current trust terms would trigger unnecessary generation-skipping tax

 

Why Thousands Trust Legal GPS Templates

Save Money: Estate attorneys charge $2,500 to $6,000 for generation-skipping trust amendments. Our template costs $35.

Save Time: Download immediately and complete with your tax advisor in hours rather than weeks.

Look Professional: Attorney-quality drafting with proper GST tax terminology the IRS and courts recognize.

Keeps You Out of Court: Comprehensive exemption allocation provisions, inclusion ratio calculations, separate share accounting requirements, and IRS-compliant distribution structures prevent challenges and minimize audit risk.

 

 

 

Get Protected in 3 Simple Steps

Step 1: Secure Checkout

Complete your purchase through our encrypted payment system. Receive instant access to your template.

Step 2: Instant Download

Download your generation-skipping trust amendment immediately. Access the comprehensive how-to guide explaining exemption allocation strategies and distribution decisions.

Step 3: Fill In the Highlighted Fields

Complete the customizable sections with your tax advisor. Review with your estate planning attorney and execute with proper notarization.

 

Frequently Asked Questions

Can I use this template multiple times?

Yes. After purchase, you can use the template to amend multiple trusts or create updated amendments as circumstances change and additional GST planning becomes necessary.

Is this contract legally binding?

Yes. When properly completed and executed according to your original trust's amendment provisions, this creates an enforceable modification recognized by courts and the IRS for generation-skipping transfer tax purposes.

What is the generation-skipping transfer tax and when does it apply?

GST tax is a 40% federal tax imposed when wealth passes to grandchildren or more remote descendants, either through direct transfers or trust distributions. It applies in addition to estate tax, potentially consuming up to 64% of transferred wealth without proper planning.

How much GST exemption do I have available?

For 2024, each individual has $13.61 million of GST exemption, the same amount as the estate tax exemption. This amount is indexed for inflation annually. Current law reduces it to approximately $7 million in 2026 unless Congress acts.

Can I amend an irrevocable trust for GST planning?

Many irrevocable trusts include provisions authorizing amendments for tax planning purposes. Some states also permit court-approved or beneficiary-consented modifications to irrevocable trusts when tax law changes make amendments beneficial. The amendment includes provisions for various authority scenarios.

What happens if I don't allocate my GST exemption?

Without exemption allocation, trust distributions to grandchildren face 40% GST tax. A $5 million distribution triggers $2 million in tax. Proper allocation eliminates this tax entirely and allows wealth to pass through multiple generations without transfer tax.