What Is a Dynasty Trust?
A Dynasty Trust is an estate-planning tool designed to preserve wealth for multiple generations while minimizing estate, gift, and generation-skipping transfer (GST) taxes. Unlike traditional trusts that may end after a set period, a dynasty trust can last for decades—or even indefinitely in certain states—allowing families to pass assets down to grandchildren and great-grandchildren while maintaining control over distributions.
Dynasty trusts are often used to protect family wealth, provide for future generations, and reduce the impact of estate taxes. They can hold a variety of assets, including cash, investments, real estate, and business interests, and may be structured to provide flexibility as family circumstances evolve over time.
Key Considerations When Using a Dynasty Trust
While dynasty trusts offer powerful long-term benefits, there are important factors to consider:
- Irrevocability: Assets placed in the trust generally cannot be reclaimed by the grantor.
- State laws: Some states limit the duration of dynasty trusts; selecting a state with favorable laws is essential.
- Tax planning: Proper structuring is required to maximize estate and generation-skipping transfer tax advantages.
Working with experienced legal, tax, and trust professionals is critical to ensure a dynasty trust achieves its long-term goals for wealth preservation and family legacy.
Why Choose Nevada Trust Company® as Your Trust Services Provider?
Administering a dynasty trust requires long-term oversight, consistency, and a deep understanding of evolving trust and tax laws. Nevada Trust Company® provides experienced, independent trust administration designed to support multi-generational planning objectives. Our team works closely with your advisory team to help ensure the trust is administered in accordance with its terms while remaining adaptable to changing family and regulatory considerations.
For families seeking a stable, knowledgeable trustee to help preserve and transition wealth across generations, Nevada Trust Company® offers the experience and continuity needed to support lasting legacy planning
