A dynasty trust is an ideal estate planning option for the preservation of generational wealth. OC Wills & Trust Attorneys support the creation of dynasty trusts for clients in Irvine, Huntington Beach, and Orange County, California.
Estate planning allows different forms of arranging an estate for the effective transfer of wealth. A dynasty trusts attorney can advise you on the benefits of creating a dynasty trust for your estate and whether this option is the estate planning structure that best suits your legacy goals.
To learn more about creating a dynasty trust, call OC Wills & Trust Attorneys today to arrange a consultation with an Orange County dynasty trust attorney.
What Is a Dynasty Trust?
A dynasty trust is a type of irrevocable trust. It’s an ideal method of transferring ownership of generational wealth, as beneficiaries avoid paying taxes as long as assets remain in the trust.
Unlike other types of trusts, dynasty trusts are ideal for long-term wealth management. A dynasty trust helps family wealth to remain intact. While other types of trusts are created for the eventual disbursement of assets to the named beneficiaries, dynasty trusts can remain untouched for generations.
The potential duration of a dynasty trust depends on state law. In California, a dynasty trust can last for up to 90 years. This allows a trust to live beyond the lifespan of a benefactor’s primary beneficiaries.
Dynasty trusts ensure that your legacy benefits both your children and your grandchildren.
Benefits of Choosing a Dynasty Trust for Wealth Transfer
A dynasty trust brings both financial and personal benefits. By transferring assets into a dynasty trust, your beneficiaries avoid the burden of paying taxes on their inheritance. It also allows inheritors to avoid various taxes, including:
- Estate taxes
- Gift taxes
- Generational skipping taxes (GST)
Inheritance taxes can significantly cut into an estate of any size. The bigger your estate, the greater the financial impact inheritance taxes will have on the wealth left to your descendants. Dynasty trusts help ensure that your wealth remains intact, untouched by the government.
A dynasty trust also supports the continued growth of family wealth rather than its distribution. Other types of trusts can also help beneficiaries to avoid sizable taxes but are created to then be disbursed to separate individuals.
With a dynasty trust, your beneficiaries become the new holders of the trust, but the intention is for family wealth to remain intact. When one is set up correctly by an experienced attorney, the wealth it contains can be protected for generations.
A dynasty trust also guarantees that what happens to your wealth aligns with your intentions.
A legacy can be strengthened or shattered depending on the actions of your immediate beneficiaries. The creation of a dynasty trust helps to ensure that your wealth is preserved according to your wishes.
Disadvantages of Using Dynasty Trusts
If your primary estate planning goal is to ensure the preservation of generational wealth, a dynasty trust is an ideal format for arranging your assets. However, any form of estate planning has drawbacks as well as advantages.
The primary disadvantage of a dynasty trust is its lack of flexibility. A benefactor has a great amount of control over the terms of the trust. However, because it’s an irrevocable trust, these terms cannot be altered after its creation without court intervention.
Should family finances or financial goals change, it’s difficult to access the wealth protected by a dynasty trust. Once the trust goes into effect, the beneficiaries have little control over the assets beyond the terms set.
However, this lack of flexibility ultimately ensures that a dynasty trust’s assets are used wisely to protect family wealth for future generations.
Protect Your Legacy With the Help of a Dynasty Trusts Lawyer
The effective execution of a dynasty trust relies on the expertise of an experienced dynasty trust attorney. An attorney’s experience informs the structure and terms of your trust, ensuring that taxes aren’t an issue and that the trust’s terms adequately serve your goals for preserving generational wealth.
OC Wills & Trust Attorneys is an award-winning estate planning law firm that serves clients in Irvine, Huntington Beach, and Orange County, California. Our attorneys are experienced in all areas of estate planning, including creating dynasty trusts.
When you work with OC Wills & Trust Attorneys, you’ll be informed of the potential estate planning strategies that may be right for you, advised on the advantages and disadvantages of different types of trusts, and guided through the entire estate planning process by a team of experienced and trusted estate planning professionals.
Contact a Dynasty Trusts Attorney in Orange County Today
OC Wills & Trust Attorneys can help you protect your legacy through the creation of a dynasty trust. Our attorneys are available to answer any questions you might have and assist you in forming the trust that’s right for your estate. Contact us today to speak with an Orange County dynasty trust attorney.