St. Petersburg Dynasty Trust Attorney
People who think of creating a trust often first think of special needs trusts or life insurance trusts. However, there is another type of trust known as the dynasty trust. A dynasty trust ensures that any property you place into it will last for multiple generations, while also providing some tax relief. Below, our St. Petersburg dynasty trusts attorney outlines what these trusts are and how they work.
What is a Dynasty Trust?
A dynasty trust allows you to transfer property among different generations while also mitigating your tax liability such as those related to estates and gifts. If you use it for this reason, including a dynasty trust within your estate plan can work as an irrevocable trust. This means that after you have created the trust, you will no longer control the property within it. Instead, you will designate a trustee that will manage the property and distribute it to your heirs according to the instructions you have included in the trust.
Due to the fact that dynasty trusts are meant to provide for many generations, they also have very long durations. A dynasty trust can be in place for up to 360 years. Many other types of trusts in estate planning do not have these lengthy durations. For example, a charitable remainder trust can only be effective for 20 years. Your dynasty trust does not have to exist for 360 years. The duration of it will depend on the number of generations you would like to receive property.
How to Create a Dynasty Trust
A dynasty trust becomes effective once you have created it and placed property, such as real estate, cash, or securities into it. Dynasty trusts are testamentary, which means they are included within your last will and testament. You must appoint a trustee to manage the assets within the trust. You can also name an alternate trustee in case the original person is unavailable or unable to take on the task of managing the assets.
Dynasty Trusts and Tax Planning
When you are trying to protect assets for your family, it is essential that you consult the tax code. When you transfer assets from one generation to another, there are tax implications associated with the transfer. Our seasoned attorney can help you avoid gift taxes, estate taxes and other taxes associated with skipping generations. Many people come to Florida to retire and once here, decide to create many types of trusts, including a dynasty trust. A lawyer can also help with domicile planning, so the generous tax laws of the Sunshine State apply to your estate.
Our Dynasty Trust Attorney in St. Petersburg Can Advise On Your Case
A dynasty trust is a great way to provide for your loved ones, but it is important that yours is executed properly so future generations will have the protection you intended. David Toback is a St. Petersburg dynasty trust attorney who will ensure your trust is created properly so you and your loved ones are protected. Call us now at 813-252-7529 or contact us online to schedule a consultation with our experienced attorney.
