Many Maryland residents often consider leaving some sort of legacy behind after their deaths. For some, simply having children to carry on their name is enough of a legacy, but for others, they may want to take a different route that could benefit their families for generations to come. Interestingly, a person looking to go the latter route could create a dynasty trust.
This type of trust offers many benefits, and numerous individuals may not have even considered it an option. With it, parties can consolidate wealth and build upon that wealth over multiple generations. In fact, the trust could potentially go on indefinitely if the proper approach is taken in creating the set up. However, parties may wish to understand that such a trust is irrevocable, meaning it cannot be changed.
In order to take advantage of the benefits of a dynasty trust, careful consideration and planning will likely be needed. If successfully created and used, however, families could protect assets from creditors and work to avoid estate taxes. Individuals can take a look at how their families may be impacted far down the line and potentially feel as if they will still be providing for future generations.
Leaving a legacy is often appealing to many people, and utilizing estate planning to do so may be a prudent step. Because dynasty trusts can be tricky to create, Maryland residents may wish to gain assistance. Knowledgeable attorneys could help interested parties obtain more information on this type of trust and better understand whether using such a tool could work for their circumstances.
Source: wealthmanagement.com, “Demystifying Dynasty Trusts“, July 11, 2017
