A trust is a popular estate planning arrangement in which an individual’s assets are transferred into trust and managed by a trustee for the benefit of one or more beneficiaries (usually children). There are a few types of trusts, with one being a dynasty trust. Dynasty trusts safeguard assets and allow them to pass with protected for many generations. If you are considering your estate planning options, you should learn about the benefits of a dynasty trust and determine if it’s right for you.
What Are the Benefits?
As you try to decide if a dynasty trust is the best tool for your family, you should learn about the benefits. A major benefit may be the ability to post-pone or save money on estate taxes.
Another benefit is the amount of control that a perpetual trust offers the grantor. Your conditions for the beneficiaries to receive assets may still be in place decades after you set them. You may also prevent waste-down from assets being spent on a new spouse/partner or from your children having to split an inheritance in a divorce. So, if you state that your grandchildren graduate from college before collecting assets from the trust, that condition can remain in place for your great-grandchildren and beyond. This lets you have a say in how your assets are managed for years after your death.
Do You Want to Create a Dynasty Trust?
Your lawyer will sit down with you to discuss if a Dynasty trust is right for you. If it is, you can work together to put protections in place and set conditions for your benficiaries. If it’s not the right choice, your estate planning lawyer will go over other types of trusts that may work better for your family.
If you’re ready to discuss your estate planning options, contact our Minneapolis law office at 612-448-9653 to schedule a meeting with our caring, skilled lawyers.