A GST is a legally binding trust agreement in which the assets are passed down to the grantor’s grandchildren. By passing over the grantor’s children, the assets avoid estate taxes that would apply had the grantor’s children inherited the assets.

Related Terms

  • Trustee

  • Testamentary Trust

  • Special Needs Trust

  • Revocable Trust

  • Qualified Terminable Interest Property (QTIP) Trust

  • Living Trust

  • Irrevocable Trust

  • Insurance Trust (ILIT)

  • Grantor

  • Credit Shelter Trust (CST)

  • Charitable Remainder Unitrust (CRUT)

  • Charitable Remainder Trust

  • Blind Trust

  • Asset Protection Trust (APT)