There are a few different types of trusts out there, but if you want to leave behind assets for multiple generations then there might be one particular arrangement that stands out. A dynasty trust can mean that your children and grandchildren aren’t your only beneficiaries. This can continue to provide for your loved ones, like your great-grandchildren and great-great-grandchildren, for years to come. A Bergen County trust lawyer can help you figure out if this is the right choice for you.
What Are the Benefits of a Dynasty Trust?
A dynasty trust can last for generations as long as it’s funded and cared for properly. You do have to surrender control over it to a trustee, but this actually helps protect any assets you put into the trust. This also helps you avoid some of the taxes that would have to be paid if you were to directly leave behind assets for a loved one. You cannot just hand someone millions of dollars and not expect a tax bill, but a dynasty trust can prevent some of your assets from being subjected to significant taxation when they pass on to your beneficiaries.
What Kinds of Assets Can I Put in This Trust?
A dynasty trust can be funded with just about any asset you can think of. You can leave behind any of the following for the next generations:
- Cash
- Real estate
- Investments of all kinds
- Valuable personal property
- Assets from a business
There are some types of assets that are better suited for this kind of trust though. Tax-free municipal bonds are an example of an asset that best takes advantage of the dynasty trust’s tax benefits.
How Long Can a Dynasty Trust Last in New Jersey?
New Jersey does not place a limit on how long a dynasty trust can last. One that is properly funded is sure to stick around for quite a while.
Does a Dynasty Trust Protect Assets From Creditors?
This is another benefit of the dynasty trust. Because it is irrevocable, it protects the assets inside from any creditors who want to go after the grantor’s assets. Since it’s also separate from the assets of the beneficiaries, that also means that this arrangement protects any assets inside of the trust from their creditors as well. This means that one person’s financial mistake cannot result in the trust being drained and nothing being left behind for future generations.
Should I Talk to an Estate Planning Attorney?
You shouldn’t try to establish a trust all by yourself. An estate planning attorney can make this process easier for you. They can also help you make sure that this is the best arrangement for you and your loved ones. We’ll help you sort through all of the available estate planning tools until we find exactly what works for you.
Contact Our Law Firm Today
If you’re ready to learn more about all of your estate planning options, contact our legal team and schedule a consultation. The experienced attorneys here at the Law Offices of Colin M. Quinn can help you no matter how large or small your estate is. We’re ready to help you find the best ways to safeguard your assets for the next generations.
