As a high-net worth individual or family, establishing a dynasty trust can offer a strategic way to preserve your family’s legacy for generations to come. The hallmark of a dynasty trust is its ability to eliminate or significantly reduce federal and state taxes owed on trust distributions during the grantor’s lifetime, after passing, and even when the trust eventually ends. This allows you to seamlessly pass down wealth to your children, grandchildren, great-grandchildren, and beyond.

Dynasty trusts are irrevocable trusts and offer incredible flexibility when it comes to distributing assets to your beneficiaries. The trustee can be given discretion to make distributions based on the trust beneficiaries’ unique needs and circumstances, rather than being bound by rigid rules. This allows the trust to adjust distributions over multiple generations to account for evolving financial situations, as well as economic conditions. Dynasty trusts can also protect assets from potential claims by creditors, divorcing spouses, and other financial threats.

The rule against perpetuities is a set of laws that can limit the duration of a dynasty trust. In some states, these laws mandate that all trust assets must be distributed within 21 years of the last surviving named beneficiary’s death. However, in Washington, where the trusts we managed are domiciled, the rule does not apply until 150 years after the trust’s effective date, potentially extending the length of time of the trust.

Altruist’s^™ trust management teams have extensive experience assisting clients with the development and management of elaborate and nuanced dynasty trusts. We will work closely with you and your attorney to develop a dynasty trust that provides financial stability for future generations and is in line your your wishes for your estate.