Summary:

As the name suggests, a dynasty trust allows individuals with significant wealth to provide for multiple generations of descendants. Typically, a dynasty trust is (a) structured to last the maximum term permitted by law (in perpetuity in some states) allowing trust assets to remain un-depleted by transfer taxes for the entire term of the trust, (b) irrevocable and includes a spendthrift provision which protects trust assets from spendthrift beneficiaries, ex-spouses, and unforeseen creditors and lawsuits, and (c) funded with amounts that take full advantage of the grantor’s transfer tax exemptions. The result: the depletion of trust assets is minimized, asset growth potential is maximized, and principal is preserved to benefit future heirs.

What Is A Dynasty Trust?