After the Deluge of Tax-Saving Transfers: How Do We Optimize Generation Skipping Trust (GST) Portfolios?
Overview
This article explores the questions and options that should be examined in designing an optimal investment program for a Generation Skipping Trust (GST). The GST is treated as a separate client from the donor to ensure the investment policy is appropriate for its specific needs.
Review questions include:
- What is the Trust’s Perspective on Risk and Return?
- What is in the Trust’s Portfolio?
- Are Swaps and Additional Contributions Anticipated?
- Does the Trust Need to Make Substantial Current Expenditures?
- New Medicare Taxes May Favor Current Distributions – and Affect Liquidity Needs
- What Kind of Liquidity Does the Trust Need?
- How Limited is the Trust’s Investment Opportunity Set?