FAQ Friday: Dynasty Trust

On Friday, August 27th at 11 a.m. EST, Mr. Berger discusses what a Dynasty trust is, and why it's needed.

This is a trust that passes to children and then grandchildren and continues on to provide for your legacy. It is protected against creditors. When money transfers to a new generation, transfer tax is not needed.

The amount that can be transferred to your grandchildren is now the same as to your children. There is no step up in basis in this situation, however.

There is a rule against perpetual trusts. So you just account for each life and work on increasing income. Individual trusts are also an option.

---

Submit your question

Bring your questions about estate planning and administration to our weekly Facebook Live with Mr. Berger on Fridays at 11am EST. Leave your email if you’d like to receive a notification of our response.