You’re not new to being a grandparent, but being a great-grandparent is a first for you. You decided to have kids relatively young, and you’ve been blessed with three children and seven grandchildren. Now, your oldest grandchild is pregnant. With the newest generation of your family on the way, you start thinking about how you can protect your legacy. You feel like you’re in good health for a person your age, but you know that no one lives forever. You’ve accrued much wealth over the years with your spouse, and now you’re wondering if a will is enough to provide for your children and your grandchildren, great-grandchildren, and beyond.
You already have your will and trust but aren’t sure if that is enough to transfer wealth across generations. A dynasty trust could be the best way to provide for your family even when you’ve passed. At Cary Estate Planning, we can help you with every step of the estate planning process. Our experienced lawyers can help you set up a dynasty trust so you can distribute your assets for a lifetime. Call us today to schedule your free consultation.
A dynasty trust is a legal tool that allows you to pass your wealth for several generations beyond your passing. This type of trust is beneficial for distributing large amounts of money to your family without paying various kinds of estate taxes on it. Dynasty trusts are different from wills because, in a will, you only get to choose a few beneficiaries to receive all of your assets. You can distribute your dynasty trust assets to several people spanning generations. When creating your dynasty trust, you, the grantor, must explain the trust’s terms. This means you must define how your wealth will be distributed among your beneficiaries. A dynasty trust lawyer can help you with this process and answer any of your questions. In North Carolina, a dynasty trust can last forever as long as the trustee can sell the trust property.
You may already have a will and a few trusts in place, so you don’t feel the need to create a dynasty trust. However, you and your family could face the consequences if you fail to create an asset protection plan. For example, if you divide your wealth among your three children, they don’t have a legal obligation to give any money to their kids or grandchildren. Creating a dynasty trust will ensure that future generations receive the best care possible while avoiding a generation skipping transfer tax. Your dynasty trust will protect them if they face financial hardship. Additionally, creditors can go after your assets if you don’t create a dynasty trust. Under a dynasty trust, creditors can’t touch your assets because it’s not considered a part of your estate. Talk to a dynasty lawyer to learn more about the advantages of creating a dynasty trust.
Before 2007 in North Carolina, you couldn’t create a dynasty trust due to the state’s rule against perpetuities (RAP). States that uphold a RAP prohibit you from making a trust that lasts longer than the beneficiaries listed in the trust plus 21 years. However, legislation was passed in North Carolina, stating that perpetual trusts, such as dynasty trusts, are allowed as long as the trustee can sell the trust’s property.
The team at Cary Estate Planning understands how important it is for you to protect your family. That’s why we want to ensure that your current family members and future generations are financially stable even after you’ve passed. We can achieve that by creating a dynasty trust. If you’re considering a dynasty and have questions, call Cary Estate Planning. Contact us to schedule your free consultation.
When can I create a dynasty trust?
You can create a dynasty trust whenever you want. If you’re thinking about creating one, you should call a dynasty trust lawyer as soon as possible. You should get the process started before you’re unable to do so.
Can I change or modify my dynasty trust?
A dynasty trust is an irrevocable trust, which means that once it’s finalized, neither you nor your trustees can change it. Due to this, you must seek help from a lawyer. They’ll help you create a dynasty trust that you’ll be happy with and will be the most beneficial to your family.
What do I do if I’m not getting my dynasty trust distributions?
If you are a beneficiary of a dynasty trust, you’re entitled to your distribution as defined in the trust. Therefore, the trustee must give you your distributions. You should contact a lawyer to discuss your legal options if you’re not receiving your fair share.