The Elder and Disability Law Firm, APC
Dynasty Trust Can Be Effective For Wealth Preservation
If you are in possession of wealth that will logically remain intact across multiple generations even as family members benefit from these resources you are going to have to seek avenues that provide tax efficiency.
The estate tax sits poised to consume 35% of the taxable portion of your legacy as of this writing, but this figure is scheduled to rise to 55% next year. Paying such a high tax even once can have a very significant impact, but doing so over multiple generations can be devastating.
One possible solution would be to fund a dynasty trust for the benefit of succeeding generations. The tax advantages begin with the fact that you are reducing the taxable value of your estate when you place financial resources into the trust.
No one individual owns these resources, so family members can receive distributions out of the trust over multiple generations but the estate tax is not imposed.
Because of the fact that these trusts can exist into perpetuity in Delaware many people create dynasty trusts in this state. There are asset protection advantages that are realized through the creation of Delaware-based dynasty trusts as well.
The estate tax is a real and present threat, but solutions do exist if you tap into the right brand of professional expertise.
Should you be interested in discussing your own unique situation with an experienced professional, take action right now to set up an informative consultation with a seasoned, savvy Redlands CA estate planning lawyer who has a thorough understanding of wealth preservation techniques.