Learn how families can use dynasty trusts to provide for many generations.
A dynasty trust is a type of irrevocable trust explicitly created to pass wealth down from generation to generation without incurring unpleasant estate taxes. This type of trust is designed to avoid the generation-skipping transfer tax, allowing your family wealth to grow long-term and benefit multiple generations of heirs. The Millman Law Group can help you navigate every detail of your estate planning, including determining whether a dynasty trust is right for you. Why do families choose to use dynasty trusts? Families throughout Florida enjoy the following advantages – is this type of trust suitable for your family?
Preserve Wealth Through Multiple Generations
Dynasty trusts facilitate the continuation of family wealth, ensuring that it does more than benefit the children of a deceased parent. Instead, the wealth can be accumulated and passed down to benefit children, grandchildren, great-grandchildren, and more! The grantor’s legacy endures as the wealth benefits their descendants and supports their comfort and endeavors for countless decades.
Minimize Taxes
Your estate planning lawyer can construct dynasty trusts that, through strategic planning, can minimize your estate taxes that otherwise erode family wealth during generational transitions. The dynasty trust is structured to navigate the generation-skipping transfer tax and to safeguard the assets as they move through generational tiers.
Protect Assets
Assets held within a dynasty trust are typically protected from the beneficiaries’ creditors, which helps safeguard family wealth. Because of how dynasty trusts are constructed, the beneficiaries’ wealth will remain secure in situations like divorces or other legal challenges where people may typically go after prime assets.
Control Asset Distribution
The grantor of the dynasty trust dictates how, when, and to whom the assets are distributed. This guarantees that the trust follows the grantor’s wishes and establishes a framework to avoid the beneficiaries’ mismanagement of wealth. This kind of control is especially helpful if any of the beneficiaries lack financial management abilities, whether because of age or circumstance.
Create Stability and Continuity
Many families appreciate dynasty trusts because of the stability and continuity they provide families. The long-lasting nature of the dynasty trust means family members receive continuous, long-term financial support, which helps them maintain a standard of living across generations. Trusts can also contribute to maintaining a family business, ensuring that necessary funds and support are available.
If you want to enjoy any of these benefits, contact your Millman Law Group attorney for guidance on creating dynasty trusts.
Estate Planning Made Easy With Millman Law Group
Millman Law Group, PLLC is rare because it’s one of the only law firms that offer life planning in South Florida. From life care planning to the preparation of detailed estate plans, Millman Law Group has committed to serving Floridian elderly communities in Boca Raton, Palm Beach County, Ocean Ridge, Hillsboro Beach, and many other areas since 2018. Our dedicated team also specializes in special needs Trusts and catering to any age demographic because we know for certain it’s never too early to start preparing you and your family for your future. For the latest news in estate planning and elder care law, follow us on Facebook, Twitter, Linked In, and Pinterest. You can also contact us at 561-463-6480.