Dynasty Trusts
A "Dynasty Trust" is merely an irrevocable trust that is designed to continue for the lives of children, grandchildren and even great-grandchildren. Because transfers to successor generations are subject to the “generation skipping transfer tax”, special care must be taken in drafting to avoid, or minimize the tax. Each taxpayer has a GST exemption that can be placed in a trust that will continue on for generations with no estate taxes imposed after the parents have died. When this tax is successfully avoided, then assets can accumulate for generations completely outside the estate and gift tax systems, thereby preserving family wealth for future generations.
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