Create a dynasty trust

A dynasty trust is a trust generally created by a parent or grandparent that holds assets that will be available for the use by and income distribution to several generations of the family with ultimate outright distribution delayed for some relatively long period of time.

This type of trust serves two purposes. First, it allows one or more generations of a family to enjoy the benefit of assets without the ability to squander or lose those assets because of outright ownership. Second, the assets transferred into the trust may be taxed only once for gift and estate tax purposes.

The types of assets that are typically put into this type of trust are cash, securities and vacation homes.

The creation and funding of these types of trusts are complex matters with substantial tax limitations and consequences. Call us if you think this type of trust may suit your needs.