Dynasty trusts are one of the most popular estate planning tools today. Dynasty trusts offer many benefits for families to help protect family assets in Michigan from probate and other estate taxes.
Estate planning dynasty trust
A dynasty trust is a type of estate planning trust created by a family or individual to provide long-term tax, charitable and other benefits for their descendants. Dynasty trusts can be quite versatile and efficient tools for estate planning. They can create an irrevocable trust with many specific provisions while still providing discretion to the trustee on administering the trust. In addition, a dynasty trust can help keep your assets dispersed across several beneficial entities, reducing your chances of having any one entity take control of your wealth.
Are there advantages in using a dynasty trust?
Dynasty trusts have several advantages over other types of trusts:
- sheltered from federal income tax
- no generation-skipping transfer tax (GST) owed on estate taxes
- estate planning protections for beneficiaries
Additional benefits of dynasty trusts
A dynasty trust is a type of trust in which the beneficiaries are related individuals, typically siblings, children, grandchildren, and sometimes great-grandchildren. Dynasty trusts offer several benefits over other types of trusts:
- flexibility in how the trust can be structured and use of the trust income tax-free
- positive effect on estate planning and tax advantages when passing wealth down to heirs
- can last for many generations, allowing a family to pass down their assets
- ability to make changes to the trust during its life cycle
- access funds during emergencies
Establishing a dynasty trust
Dynasty trusts offer many benefits over traditional trusts, such as making changes to the trust during its life cycle, accessing funds during emergencies, and shielding heirs from estate taxes. If you are considering setting up a dynasty trust, some professionals can help you create the necessary legal documents to establish a dynasty trust.