Legal structure
Dynasty Trust
An irrevocable trust intended to benefit multiple generations, often in states that have modified or repealed the rule against perpetuities.
Typical purpose
Multigenerational stewardship and transfer tax planning.
How it operates
A trustee administers assets for successive generations under long-horizon terms.
Who might use it
Families planning wealth stewardship across generations.
Assets commonly involved
- ◆Investment portfolios
- ◆Business interests
- ◆Real estate
- ◆Life insurance
Potential advantages
- ◆Long-term governance
- ◆Potential GST tax planning
Legal and tax limitations
- ◆Irrevocable
- ◆GST exemption allocation required
- ◆Long-term administration costs
Establishment & administration
- ◆Situs in suitable state
- ◆Trust protector provisions often used
Common mistakes
- ◆Rigid terms that can't adapt
- ◆Failing to allocate GST exemption
Questions to ask a professional
- ◆Which state's law should govern this arrangement, and why?
- ◆Who should serve as trustee and successor trustee?
- ◆How will the trust be taxed at the federal and state level?
- ◆What assets must be retitled, and who handles the transfers?
- ◆What ongoing records, filings, and reports will be required?
Educational information only. Trust law varies by state; consult qualified legal, tax, and financial professionals before acting.
Next step
Move from understanding to a properly reviewed plan.
Discuss a Dynasty Trust With TangierEducational information only. Not legal, tax, or investment advice.