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Dynasty Trust: Safeguarding Your Legacy Across Generations

Loune-Djenia Askew, Esq.

Mar 22, 2024

Building wealth takes time, dedication, and sacrifice. While you strive to create a secure future for yourself and your loved ones, wouldn't you want to ensure your legacy continues to benefit future generations? This is where the concept of a dynasty trust comes into play.

What is a Dynasty Trust?

A dynasty trust, also known as a perpetual trust, is a specialized legal instrument designed to transfer wealth across multiple generations, potentially for centuries. It acts as a separate legal entity that holds your assets and distributes them according to your wishes over an extended period.

Distinguishing Features of a Dynasty Trust:

  • Long lifespan: Unlike traditional trusts that terminate after a set period or upon the beneficiary's death, dynasty trusts can last for generations, offering long-term wealth preservation.

  • Tax advantages: Properly structured dynasty trusts can help minimize the impact of estate taxes on future generations by removing assets from your taxable estate.

  • Flexibility: You can tailor the trust to your specific needs and preferences, including designating beneficiaries, outlining distribution criteria, and specifying the use of funds for specific purposes, like education or healthcare.

Things to Consider:

  • Cost: Establishing and maintaining a dynasty trust can be complex and costly, requiring legal and administrative fees.

  • Complexity: Structuring a dynasty trust effectively requires expertise and careful planning. Consulting with an experienced estate planning attorney is crucial to ensure compliance with legal regulations and achieve your desired outcomes.

  • Tax implications: While offering tax advantages, dynasty trusts are subject to complex tax rules and regulations. Consulting with a tax professional alongside your attorney is crucial.

For more information, contact our office at Askew & Associates, P.A. by calling 954-546-2699.

Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns.

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