What is the dynasty’s trust?
The dynasty trusts a trust that lasts for several generations. It’s called a dynasty trust just because of that fact. it’s also known by other names some people call it the legacy trust. Sometimes it’s called the triple generation trust.
I call it the biggest legal loophole in the tax law because, in my opinion, that’s exactly what it is. It’s a marvelous way for you to leave your assets to your children’s grandchildren and great-grandchildren and avoid the in-laws that sometimes become the outlaws to give the children unbelievable creditor protection.
Where they cannot get on the owned and give your children a state tax protection as well. It’s your opportunity to reduce or to totally eliminate the voluntary, confiscatory and death tax in America.
The way I like to explain it is the opportunity that you have to enhance the inheritance going to your children. Most families have some form of trust the revocable living trust normally gives the assets the children at staggered ages perhaps 1/3 to 25 1/2 of 30 or the balance of 35.
What happens when the children get the money is that they often lose that money to divorce bankruptcy, lawsuits, automobile accidents. But you have a better way to leave your assets to your children to make sure the money continues for them.
You can eliminate those in-laws that become the outlaws you can have it maintained as a children’s sole and separate property. You can avoid creditors and give the children unbelievable creditor protection that they cannot get on their own.
What tax benefits are available?
You can also give them unbelievable tax protection and I’m talking about saving the estate tax because the estate tax also known as the death tax is a long generational alliance. If you leave your assets outright to your children what happens is those assets would be taxed a second time when your children die before they go down to the Grandchildren.
The exact same assets are taxed a third time with grandchildren dying goes down here, great-grandchildren. You have the opportunity of setting up a plan that eliminates these series of state taxes along generational lines.
Legacy Trust or Dynasty Trust
The way I like to explain this legacy trust or dynasty Trust is to imagine the opportunity you have to give your children money in a jar. They each can become the trustee of their own trust at the proper age usually clients like some aged between 30 and 40 and they can control the assets inside the cookie jar.
They can reach in and get the assets they can get the income principle. But by leaving these assets in a cookie jar you give them asset protection. So if they get sued the creditor cannot get inside the legacy trust.
The Bankruptcy Court cannot get inside the legacy trust. The in-law that becomes the outlaw cannot get inside the legacy trust and if you want you can restrict your children to pass on down to the grandchildren.
It’s entirely up to you in terms of how you build this legacy trust. You can set up a legacy trust a day while you’re alive or you can set up the legacy trust to be continued in your vocal bull living trust at your passing. The choice is yours, but the opportunity to give creditor protection.
Asset Protection for your children is a very exciting opportunity that we all need to consider an endless litigious society that we live in.
Last year over 20 million lawsuits were filed. Is your trust leaving your assets to your children outright or you lenient to them in an asset protection type of trust known as a legacy trust or a dynasty trust.
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