There are many ways to protect your assets and pass them on to your children, but what if you want your wealth to last for even longer? A dynasty trust, when properly set up, can allow your assets to be passed down for generations. A Washtenaw County trusts attorney can tell you if this arrangement is a good fit for you and then they can help you establish and fund a dynasty trust of your own.
When Should I Use a Dynasty Trust?
A dynasty trust should be used if you want to pass on assets to more than one generation of beneficiaries. Many estate plans leave something behind for children of the deceased and grandchildren, but a dynasty trust can go even farther than that as long as it remains funded.
This type of trust is also irrevocable, which means two things. One, it is protected from creditors. This applies to the grantor’s creditors and any creditors of the trust’s beneficiaries. The second benefit is that it offers tremendous tax advantages, often allowing significant transfers of assets without anyone having to worry about a big tax bill.
The irrevocable nature of this arrangement does mean that it is beyond your control though. If you are comfortable putting power in the hands of a trustee and want to leave behind wealth for multiple generations, the dynasty trust could be your best option.
Who Can Benefit From a Dynasty Trust?
Each state has its own rules, but Michigan is one of the ones that places no time limit on a dynasty trust. This means that, if properly funded and cared for, this trust won’t just provide for your children and grandchildren. Your trust could last long enough to pass on assets to your great-grandchildren and even your great-great-grandchildren. It’s tough to find a better way to leave a significant legacy behind.
What Can I Put in a Dynasty Trust?
Just about any asset you can think of. You can fund this trust with cash, real estate, investments, and even personal property. If you want to make the most out of this arrangement’s tax benefits, assets like tax-free municipal bonds and stocks that don’t pay out dividends are great choices.
Should I Hire a Lawyer?
Yes, we do recommend hiring a lawyer. An experienced estate planning attorney can help you set up a dynasty trust, but more importantly they can tell you if this kind of arrangement is a good fit for you and your estate. We’ll help you sort through all of your options and find the best way to pass on your assets to your loved ones.
Meet With Our Estate Planning Attorneys
When you are ready to make an estate plan, don’t try to do it all by yourself. Contact Collis, Griffor & Hendra to schedule a consultation and learn more about the best way to protect and preserve your assets.
