Dynasty Trust

Dynasty Trust

A Dynasty Trust is a long-term trust designed to preserve family wealth across multiple generations while minimizing estate taxes and protecting assets from creditors and divorce claims.

This type of trust allows the grantor to transfer assets into the trust, which can be managed and distributed according to specific guidelines set by the grantor. The trust can continue to exist for many generations, often perpetually, depending on state laws regarding the duration of trusts.

For example, if a wealthy family sets up a Dynasty Trust, the assets within the trust can provide income or distributions to beneficiaries for generations, ensuring that wealth is maintained within the family while also providing tax advantages and protection from outside claims.