For many, estate planning often seems like a limited process, with only a basic trust or will to protect assets. However, it’s critical to understand that this is far from the truth, and in reality, there are many options out there that can benefit you and your specialized needs. One option many are unaware of is dynasty trusts. As the name suggests, this can help care for generations of those in your family. If you’re unsure what a dynasty trust entails or why you should consider meeting with Tampa trust lawyers soon to create one, you’ll want to keep reading.
What Is a Dynasty Trust?
A dynasty trust is a form of irrevocable trust fund that, when established correctly, spans generations. In many instances, traditional inheritances are often completely depleted within one or two generations. However, establishing a dynasty trust allows you to protect your wealth for generations in Florida. These trusts differ from traditional ones in that traditional trusts usually expire after a certain time frame, whereas these can last for generations at a time.
The main benefit of establishing a dynasty trust in Florida is that it reduces the transfer tax that happens when wealth is passed from generation to generation. This allows the wealth held in these trusts to grow over time, meaning each generation can accumulate more wealth.
Why Should I Meet With a Lawyer Soon to Establish One?
The main reason you should consider meeting with a lawyer as soon as possible to establish a dynasty trust is because the terms of these trusts are changing in the new year. The maximum tax-free contribution will decrease drastically to 6.8 million dollars, effective January 1, 2026. As such, to reap the full benefits of this process, you should meet with a lawyer sooner rather than later to ensure you can contribute as much as possible.
As mentioned, these are irrevocable trusts, meaning you will be unable to alter the terms and conditions of the trust once it is created. You also lose control of the assets in the trust. As such, meeting with an attorney to ensure you establish this trust correctly and according to your wishes is critical to protecting your assets.
Finally, it’s also beneficial to meet with an experienced estate planning attorney to discuss who will serve as the trustee for this dynasty trust. While anyone can serve as the trustee, because these can last generations, it’s in your best interest to consider appointing a financial institution to this role.
Creating a trust fund can be incredibly overwhelming, but when you’re planning for future generations, ensuring you work with an experienced attorney is critical. At the Tampa Law Group, we understand how difficult these matters can be, which is why we will do everything in our power to help guide you through this process so you can receive the peace of mind that your assets and beneficiaries will be protected for years to come.
