A dynasty trust is an irrevocable trust designed to eliminate the following taxes -- gift, estate and generation-skipping taxes -- for generations of the grantor's family , a "dynasty".
Depending on state law, the trust can last for a time certain or forever.
This trust is established by the grantor during his or her lifetime for the benefit of family members -- children, grandchildren or other blood relatives.
The trust's purpose is to extend the grantor's benefits from his or her estate to many generations of family thereafter and allows the grantor, after death, to maintain family traditions important to him or her.
For example, the grantor can assist with the education of a grandchild, help a nephew manage his inheritance, or provide family support for a child, while preserving the family's wealth in the trust.
The dynasty trust can be funded up to the generation skipping transfer tax exemption amount of the grantor, which is currently $5.125 million.
If you would like more information about dynasty trusts, please contact the attorneys of Santaella Legal Group, APC.