Dynasty Trusts and the GST Tax
GST tax mechanics, the inclusion ratio, exemption allocation and ETIP, and building a perpetual, tax-efficient dynasty trust.
What this guide covers
- The GST tax (flat 40%) reaches direct skips, taxable terminations, and taxable distributions.
- A zero inclusion ratio (full exemption allocation) makes a trust permanently GST-exempt; avoid partial ratios by segregating trusts.
- The ETIP rule delays GST allocation during inclusion periods — a drawback for GRATs.
- Dynasty trusts pair the GST exemption with perpetuities-friendly situs and flexible administrative powers.
The full guide includes the detailed analysis, worked examples, statutory citations, and related resources below.
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Educational reference, not legal advice. Prepared for licensed professionals as general reference; not legal advice and no attorney-client relationship is created. Law varies by state and changes over time — verify transfer-tax figures and statutory citations against current primary authority. This resource was last updated 2026-07-31. Estateur is not a law firm.