DYNASTY TRUSTS: A Great Family Legacy

Modern trust law in many States permits a trust to exist for many generations and provide benefits to your grandchildren and their descendants or other desired beneficiaries. This type of trust can provide many benefits not possible with a typical revocable trust not the least of which is avoidance of estate tax for each generation. The trust can  be designed to encourage  education or other chosen values that you desire to instill in your descendants. For example, the trust could provide for a special distribution amount as a reward when a trust beneficiary obtains a college degree, works for a charitable cause, gets married, enters a particular profession or achieves some other desirable goal. These types of incentive provisions can foster your goals to positively enhance the lives of your descendants. The trust can also provide protection in the event a beneficiary gets divorced, files bankruptcy, gets sued, has financial problems, suffers a disability or other catastrophe.

In my experience talking with clients about trusts, I know that the first reaction of most clients is to be fearful of being locked into a trust or leaving your children or grandchildren in a position of not being able to exert some control over the trust and unable to receive the benefits. Fortunately, there are many ways to setup the dynasty trust to allow flexibility and control. A trust should not be thought of as a restrictive arrangement. Rather, it should be viewed as a positive way to continue your influence to better the lives of your descendants for generations to come.  The Dynasty Trust can be a positive influence on your descendants that will enhance their lives and protect them from financial catastrophes.

For more information, please refer to the section on my website on Dynasty Trusts.   http://www.michaelmillonig.com/practice-areas/trusts/#Dynasty