Does $4,871,250 go into the trust and then 55% is paid out for GST tax every time the trust makes a distribution of principle or income? 2)Does $2,747,563 go into the trust and the skip persons are not subject to any further GST tax? OR 3)Does $2,747,563 go into the trust, but GST tax keeps being paid, again and again, with every distribution of principle and income until the Rules Against Perpetuates ends the trust? Do I have a basic idea here, or am I totally clueless? Butterfly email@example.com All the tax is paid up front with the 706. Future distributions of capital are not taxed (except for any gains). If properly drawn no one pays any more FET or GST until last in Perpetuaties dies with it in their estate--skips all other generations. In other words, if you pay the top bracket tax (55%) up front no more 37 to 55% for future generations. Ed.
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