[WSBAPT] GSTT and retained income

[John J. Sullivan]

I have clients in a similar situation. I used ten year GRATS. The second terminated last year. I had to file a second 709 to allocate GSTT exemption. I’d be glad to discuss. 

The technique moved about $20 million out of the couple’s gross estate at a much discounted use of gift and GSTT exemption. 

John J. Sullivan
425-451-2400

Sent from my iPhone

> On Mar 5, 2021, at 12:20 PM, susan at pepetersonlaw.com wrote:
> 
> 
> Listmates, I could use any and all thoughts about the following: HC has a valuable (at least $10 million) piece of commercial property in another state which is likely to continue to appreciate.  It is the main asset in his estate and also currently generates significant income that he needs to live on.  HC would like to place the property in a generation skipping trust for his grandson, with benefits to his daughter while she lives, but he also wants to retain the ability to receive the rental income from the property during his own lifetime.  An additional goal is that he would like to continue to be involved in the management of the commercial property—he views this as taking the burden of management off the rest of the family as they have no experience in the area and he doubts they are interested in doing so anyway.  Is this the best way to achieve his goal of preserving his exemption amount while continuing to have a steady income?  He also wants to name his grandson as the trustee and is confident that the grandson will be cooperative and “take care of him.”
>  
> Susan E. Spuller
> Attorney at Law
>  
> Law Office of Paulette Peterson, PLLC
> 710 Ericksen Ave NE, Suite 201
> Bainbridge Island, WA 98110
> 206.855.9293
> Fax: 206.678.0105
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