The dynasty trust: wealth that lasts generations.

By Tresp, Day & Associates · October 28, 2021

Without planning, family wealth runs a gauntlet at every generation: potential estate tax at each death, and exposure to each heir’s creditors and divorces in between. A dynasty trust is built to carry wealth through those hazards intact, for as long as the law allows.

How it works

You transfer assets into an irrevocable trust designed to last for generations. The trust, not the individual beneficiaries, owns the assets, distributing income or principal to descendants according to your instructions. Because no generation owns the assets outright, they aren’t pulled into each heir’s taxable estate or exposed to each heir’s creditors.

The two big benefits

Multi-generational tax efficiency: By using your generation-skipping transfer (GST) tax exemption, a properly structured dynasty trust can pass wealth to grandchildren and beyond without estate or GST tax at each generation. Ongoing creditor protection: Assets stay shielded from the lawsuits, divorces, and creditors of every beneficiary along the way.

Who it’s for

Families with wealth beyond their own lifetime needs, focused on providing for, and protecting, future generations. A dynasty trust pairs naturally with broader estate and asset-protection planning. Tresp, Day & Associates designs dynasty trusts as part of coordinated legacy plans.