What is a dynasty trust?

A dynasty trust is a type of irrevocable trust that is designed to pass wealth from generation to generation without being subject to estate taxes. This type of trust can be used to preserve and protect family wealth for many generations.

One of the key benefits of a dynasty trust is that it allows assets to be held in trust for an extended period of time, typically up to several generations. This means that the assets in the trust can continue to grow and accumulate wealth over time, benefiting multiple generations of the same family.

Additionally, assets held in a dynasty trust are generally protected from creditors, lawsuits, and divorces of the beneficiaries. This can help to ensure that the wealth remains intact and is passed down to future generations as intended.

Dynasty trusts are typically set up with specific provisions and guidelines to ensure that the assets are managed and distributed in accordance with the wishes of the grantor. It is important to work with a qualified estate planning attorney to create a dynasty trust that aligns with your goals and objectives for passing wealth to future generations.