In 2019, Barry creates an irrevocable trust for the benefit of his children and grandchildren with $400,000 of assets. Barry allocates $400,000 of his GST Exemption to this trust when filing Form 709. If the trust appreciates to $1,000,000 in 2022, and a distribution of trust income is made to one grandchild, what are the GST implications of this situation?

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Reasons for Estate Planning

Planning is a process that helps decide in advance about future activities and operations. Planning helps to draft the procedures by identifying, analyzing, and designing how to work, when to work, by whom should be done, and what has to be done. It is the primary step followed by a person, business organizations, institutions, companies, etc.