Dynasty Trust Lawyers
What Is a Dynasty Trust?
A dynasty trust is a legal arrangement meant to protect assets estate taxes, creditors, and spouses of beneficiaries. It is an element of an estate plan that, when used properly, can make it far easier for your children, or other beneficiaries, to hold onto their inheritance.
It is also meant to ensure that a person’s estate is passed down through many successive generations. An ordinary will, which simply gives property to a beneficiary (usually a child of the testator), does not guarantee that the estate will be made available to future generations – the beneficiary might simply spend the money, or sell the property, taking it out of the family forever.
Once a dynasty trust is created, it cannot be revoked under any circumstances. As with many irrevocable trusts, some flexibility is given up in favor of security.
How Long Can a Dynasty Trust Last?
Generally, a dynasty trust can last forever. Because it’s inaccessible to creditors and other outsiders, a dynasty trust is designed to last a long time. However, in most cases, the legal protection against creditors does not last forever. But, it usually last for a very long time. For example, in Alaska, a dynasty trust can last for 1,000 years, as long as the assets remain with the beneficiaries of the trust. In many other states, dynasty trusts can last for several hundred years.
So, as a practical matter, a dynasty trust can last forever, considering that most people aren’t making plans hundreds of years in advance.
How Can an Estate Planning Attorney Help?
If you think that a dynasty trust is something that might benefit your family, you may want to incorporate one into your existing estate plan. Obviously, before setting one up, you should speak with an estate planning lawyer, who can advise you of your options.
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Last Modified: 08-16-2011 03:42 PM PDT
