Estate Planning & Probate Lawyer, Fort Lauderdale, FL

Fort Lauderdale Generation-Skipping Transfer Lawyer

Specializing in wealth transfers & estate planning in South Florida

You’ve worked hard to get everything you’ve got. It only makes sense that you want the fruits of your labor to benefit your loved ones, but estate taxes can put a wrench in these plans – potentially assessing a 40 percent tax rate on end-of-life transfers.

Fortunately, there are ways to get around federal estate taxes using estate planning tools like generation-skipping trusts. These innovative financial structures skip the next generation (your children) and transfer assets directly to the one after that (your grandchildren); thus, your assets are only taxed once, instead of twice. Find out if a generation skipping trust is right for your estate plan. Contact Fort Lauderdale estate and probate attorney Geoff Levy for a confidential free consultation.

How does a generation-skipping trust work?

Florida has no estate or inheritance taxes, making it an attractive state for maximizing wealth transfer across generations. However, it's important to remember that federal taxes may still apply. Protecting your loved ones and your legacy – even in Florida – requires planning to avoid serious taxes and a potentially expensive probate process.

In a generation-skipping trust, or GST, you establish a legally structured trust and transfer qualifying assets into it. You then name your grandchildren or other loved ones as beneficiaries, outlining specific terms for how and when they receive the funds. You can appoint a trustee to manage the trust and ensure your wishes are followed.

Two types of GSTs in Florida

There are two general types of GSTs:

  • GST with Income for Children. In this plan, you set up a trust funded with assets under your GST exemption (a multi-million-dollar amount adjusted annually for inflation). Your child receives income from the trust during their lifetime and after their passing, the remaining assets go directly to your grandchildren.
  • Direct Generation Skip. You directly gift assets under the GST exemption amount to your grandchildren or you can fund a trust specifically for their benefit. This approach completely bypasses your children's estate, minimizing the overall tax burden.

When to use a GST

Generation-skipping trusts are worth considering if you have a substantial estate and want to protect your family's long-term financial well-being. Depending on the size of your estate, this “skip” could save millions in taxes. There are many scenarios in which you should consider a generation-skipping transfer. A GST could help you:

  • Avoid federal gift and/or estate taxes
  • Protect assets from estranged children
  • Ensure financial stability for young grandchildren and future generations
  • Provide security for loved ones with special needs
  • Transfer business ownership to a grandchild when children are not interested
  • Accomplish charitable goals

Protecting your legacy begins with a call to us

GSTs provide peace of mind for wealthy Floridians with large estates, offering significant tax savings when crafted with precision. The Levy Firm PLLC in Fort Lauderdale, known for its personable service and impeccable, tailored legal documents, ensures your legacy is preserved and your wishes are honored. If you are planning your estate or need to get started, contact us for a confidential free consultation. We can explain how the law applies to your situation as well as your GST options.

Free Consultation. Contact Us Today.
Se Habla Español
Free Consultation. Contact Us Today.

If protecting your legacy and the financial security of your loved ones is a concern of yours, it’s a concern of ours. Let’s talk. Our law firm provides legal services in English and Spanish. Free consultations for new clients.

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