Securing Your Legacy: Is a Dynasty Trust a Good Idea?
The word “dynasty” is all about family. In Dynasty, the dramatic television show from the 1980s, two families feuded over family and fortune. Ancient and modern political dynasties maintained power and control among leaders from one family. In estate planning, the word “dynasty” is used in connection with a trust created to keep money in the family. If you want to secure your legacy for generations to come, you may want to establish a dynasty trust.
What is a Dynasty Trust?
When a trust is established for the purpose of transferring wealth between generations, it may be called a dynasty trust. It may also be called a generation-skipping trust or a legacy trust. One of the main reasons for using this type of trust is to avoid paying gift taxes, estate taxes, and generation-skipping transfer taxes.
Dynasty trusts are long lasting. In fact, the Arizona probate code allows for trusts that continue up to 500 years. That’s a lot of generations!
Why would a Dynasty Trust be right for me?
This type of trust is used to transfer wealth, reduce taxes, and protect assets from creditors, ex-spouses, and others with alleged claims.
If you want your wealth to last for more than one generation, a dynasty trust might be a good way for you to achieve that goal.
If your estate property will be big enough for estate taxes to be due, then a dynasty trust might help. Assets transferred to a dynasty trust may be exempt from taxes because they are no longer in the trust maker’s taxable estate.
If you want your wealth to be protected from your beneficiaries’ creditors, talk to your attorney about setting up a dynasty trust.
Finally, if you want to transfer wealth to your family without paying gift or generation-skipping taxes, a dynasty trust may be just right.
How Would You Like to be Remembered?
A dynasty trust might be right for you if you want to leave a legacy that your family will enjoy for generations.
Find out more about your estate planning options by watching some of the free videos on our website, keystonelawfirm.com. For more information or to set up an appointment with a qualified Arizona estate planning attorney, give us a call at (480) 418-8448. Located in Chandler, we assist clients throughout Arizona including Ahwatukee, Gilbert, Sun Lakes, and Tempe.