Visit Us
1350 Euclid Ave., #280 Cleveland, OH 44115
The transfer of assets to one’s beneficiaries is of utmost importance when determining estate planning. The wide variety of trusts can be confusing at best and overwhelming at worst, creating a sense of dread at the thought of establishing a trust. Knowing whether to choose a dynasty trust, a type of irrevocable trust, or a revocable trust can be difficult, but with the help of an Ohio estate planning lawyer from Rhodium Law, LLC, you can ensure that you understand all of your legal and financial options. Request a free consultation with one of our knowledgeable lawyers at (216) 279-3611 to discuss creating an individualized estate plan.
Dynasty trusts are a type of irrevocable trust. Assets within an irrevocable trust are not subject to estate taxes, making them oftentimes preferable for maintaining assets when transferring them to beneficiaries. These trusts are irrevocable, meaning the assets within them cannot be removed. The creator of the trust transfers control of the assets to the trustee, giving up the ability to reacquire assets, but increasing tax benefits. This can be useful for wealthy individuals who wish to maintain assets for generations. A revocable trust allows the creator to remove assets when necessary, but has fewer tax benefits. This trust may be safer since it allows the trust creator to maintain control of assets, but because it has less risk, it can result in higher estate taxes. This may mean that your beneficiaries receive less of the benefits of the trust, but it gives the trust creator more control over the assets within. Both types of trusts are useful, but it can be hard to determine which is right for you.
Dynasty trusts are established to help maintain assets within a family for generations. They reduce taxation, allowing more of the assets to be received by the beneficiary. They also reduce the chances of changes being made to the trust. This allows the trust creator’s vision to be maintained for generations, keeping the assets within the trust for the beneficiary. Though there are benefits to a dynasty trust, it is not always the best choice for everyone.
Dynasty trusts are typically most useful for wealthy individuals who wish to pass down their assets to their progeny with as little tax reduction as possible. Those who should consider a dynasty trust may include:
Dynasty trusts, being quite complex and important for taxation, should not be entered into lightly. Those who are looking to establish a dynasty trust should consider speaking with an estate planning lawyer at Rhodium Law, LLC to weigh their options and make an educated decision.
Though dynasty trusts can be beneficial for some individuals, they are not necessarily universally useful. Those who do not have great wealth that they wish to maintain for their posterity would not greatly benefit from this type of trust. The risks associated with relinquishing control of assets to the trustee are often not worth the tax benefits that dynasty trusts hold. Unless one holds a large amount of wealth and wishes for those assets to be maintained within their family, a dynasty trust may not be more beneficial than a revocable trust. With the help of an experienced Ohio estate planning lawyer, individuals, and families can make the decision to choose a revocable or dynasty trust depending on their own set of circumstances.
The goal of a dynasty trust is to protect your assets for generations. It allows beneficiaries to receive more assets within the trust and keeps the trust from being revoked or changed, maintaining the creator’s original design and goals. There are a number of means through which dynasty trusts protect and maintain assets:
By reducing taxation, dynasty trusts can allow more of your assets to be passed to beneficiaries. This keeps more of the assets within the family, maintaining the familial wealth. These trusts’ irrevocable nature allows them to be maintained for years, without fear of assets being removed from the trust or changed. This protects them from tampering and allows for assets to be passed down from generation to generation.
A dynasty trust should be established after much thought and consideration, not as a rash, spur-of-the-moment decision. The decision should not be taken lightly since it can determine what assets your beneficiaries will receive from the trust and require the relinquishing of the assets’ control from you to your trustee. Before beginning the process, one should hold enough wealth to necessitate the protection and transference of assets to future generations. A dynasty trust is meant to maintain wealth within a family for generations, creating a “dynasty” of sorts. To avoid confusion and make informed decisions about trusts and estate planning, consider talking with an estate planning lawyer. This will help to make clearer the pros and cons of each type of trust, improve tax-efficiency, and ensure your legal, financial, and personal preferences are protected.
Passing down assets to future generations is important and should be taken seriously. Trusts can help facilitate this process, but the many different types of trusts can be confusing. A dynasty trust, which is a type of irrevocable trust, may be the right choice for you.
If you are considering establishing such a trust, consider connecting with an Ohio estate planning lawyer. The maintenance and transference of your assets can establish your financial legacy and should be done with great care. Our knowledgeable estate team would appreciate the opportunity to help make estate planning a smooth and easy process for you. Call Rhodium Law at (216) 699-8145 to schedule a free consultation meeting with an estate planning lawyer.
