What a Dynasty Trust Entails for Asset Protection

A dynasty trust is similar to other types of trusts, but it also has its own unique qualities.
 
For example, a basic asset protection trust typically allows clients to preserve and protect assets for themselves with the remainder interest going to their children. However, a dynasty trust is designed to preserve wealth and protect assets for a longer period of time.

Another key difference between a basic asset protection trust and a dynasty trust is how beneficiaries can access funds in the trust. A basic asset protection trust allows the beneficiaries to access the income earned as well as the principal.
 
However, with a dynasty asset protection trust, future generations can usually access the income that is earned by the trust, but not the corpus. The principal amount stays intact in order to continue to generate income for many generations.
 
A dynasty trust is designed to last for many generations. In fact, some jurisdictions allow dynasty trusts to last a thousand years.

A Dynasty Trust Also Offers Several Benefits to Investors

Smart investors can often avoid or minimize estate taxes by limiting the number of transfers that are made to subsequent jurisdictions. By retaining assets in a dynasty trust and executing well-defined transfers to each generation of the family, the investor can keep the wealth of the trust from being subjected to estate taxes for each generation that passes.

Like other types of trusts, the grantor retains the power to control how the funds will be used and distributed in the future. This allows the investor to ensure that funds are used in accordance to his or her own values. The investor can also make changes during his or her lifetime as situations change.

Nagel Law provides assistance to individuals who want to protect their wealth and assets. Every financial situation is different, and an experienced attorney at Nagel Law can provide helpful information to clients regarding the optimal investment plan.