Dynasty trusts in estate planning have one sole purpose and that’s to benefit future generations. In fact, you can leave assets to your grandchildren, their grandchildren and other future generations. You have total control into how it plays out, such as how much you wish to leave those future generations.
These powerful estate planning and financial tools work as a shield against creditors and they’re fine solutions for those worried about estate taxes. Many clients will pair a dynasty trust with their life insurance policies so that the tax burden isn’t overwhelming for their heirs; the insurance policy covers the taxes. As much as we want to provide every opportunity and benefit for our future family members, life can be challenging: divorces, bankruptcies, remarriages, and business losses – the list is endless. A dynasty trust eliminates those worries since creditors are blocked and these trusts are usually shielded in divorce proceedings.
- ￼What Do I Do If I Received a Crummey Notice? - September 29, 2022
- The Intersection of Asset Protection Planning and Estate Planning – Part I - September 20, 2022
- If an Estate Owes Federal Gift and Estate Taxes, How Do I Pay Them? - September 15, 2022