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Bad Trusts – Lots of old trusts are not optimally drafted, some have mistakes, many were created when planning styles were different (e.g. distribute assets at say age 30 outright instead of keeping in long term trusts), they may not have allocated GST exemption, and so on.
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"Looking to the long term, trust and reliability have been essential ingredients in productive relationships between the president and Congress," said Phil Schiliro, who served as director of legislative affairs under Obama.
When this is coupled with a long term trust (dynasty trust) wealth can compound outside your estate forever.
Though it may cause short term tension, it will cause long term trust.
This will promote long term trust in the scheme, which is necessary for sustainability of such schemes.
Families in which generations are already at odds over trust investments should take note: New York and Pennsylvania — the home bases of many long- term trusts — may soon allow existing trusts to convert to unitrusts.
The prevailing view among scholars is that enactment of the generation skipping transfer (GST) tax in 1986 prompted the movement to abolish the Rule by conferring a salient tax advantage on long-term trusts.
Long-term trusts pose special challenges.
Another challenge of long-term trusts that isn't discussed in the movie, but is implicit, relates to choosing the initial trustees, and a method for selecting successors who can take over when they are no longer willing or able to serve.
Nurture a long-term, trusting relationship.
Brownstein did not share Oyer's and other panelists' long-term trust in market forces.
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