A lower-earning client of mine (family income of about $60,000) is inheriting a condo that just sold for $360,000 and a brokerage account with abo0ut $200,000 in stocks. The family is not particularly wealthy.
The client received instructions for their lawyer as follows:
Can you please call to make an appointment to come in to sign your respective documents to set up your GST Exempt Trusts? Once you have signed, I can obtain an Employer Identification Number (like an social security number) for your Trust. From there, I will email you all the documents you need to set up your GST Exempt Trust at your chosen bank. You can then deposit your distribution check into the account in the name of your trust.
You are trustee of your trust, and have full and sole access to your trust account. You can take as much as you need to from your trust account for your or your descendants' health, education and support. You will need to file annual tax returns for your GST Exempt Trust, so please let your accountant know of its setting up. I can also speak to your accountant if needed.
Please go easy on me as my experience with trusts is elementary (I'm actually taking an extensive online course right now)...
Why a GST? Isn't that for families with more than ~$12,000,000?
Is GST tax return preparation specifically challenging and filled with traps and pitfalls as compared to the run-of-the-mill revocable/non revocable trust?