Dynasty Trusts

What Are Dynasty Trusts?

A dynasty trust is a long-term trust used to pass family wealth to future generations. Dynasty trusts are not just for the wealthy, but provide protection for most families. With this type of trust, the assets can only go to the proper beneficiaries. The trust provides powerful protection against creditors, often preventing loss to a lawsuit against the beneficiary. Trust assets do not belong to the beneficiary, and cannot mix with the assets of a spouse or partner. In the unfortunate event of a breakup or divorce, the trust assets are not lost to a beneficiary’s spouse or partner. Perhaps most powerfully, at a beneficiary’s death the trust assets pass to the beneficiary’s children without estate tax, preserving the family’s legacy for generations.

simple and happy family

How Dynasty Trusts Work In California

Dynasty trust laws are different in each State. A dynasty trust in California is going to look and work different from one in any other State. A dynasty trust in California can last for more than 90 years and often has one trustee. A trust in other states, with different laws and practices, may last longer and require two or more trustees. Finding a skilled trust lawyer in your area makes it easier to set up a dynasty trust. Keyes Law Group, PC serves many communities in Santa Clara County, including Mountain View, Palo Alto, and Santa Clara. We can help you design dynasty trusts that work best for your family.

How Keyes Law Group, PC Can Help

A lawyer can recommend the best terms for the trust based on your concerns and circumstances. One dynasty trust can be very flexible for a beneficiary while another dynasty trust can establish strict controls and limits for a different beneficiary. This can be important where a beneficiary is immature or cannot control their spending habits. An experienced lawyer can also advise you on choosing the right trustee. A good trustee can often avoid conflict with a resistant or unmanageable beneficiary and maintain family relationships.

What is a dynasty trust?

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A dynasty trust is a tool to protect someone of a younger generation from loss

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to creditors, the federal government, as well as spouses.

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So it’s a specific tool that you would create.

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So oftentimes a parent creates a dynasty trust for a child or an aunt or an

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uncle creates one for a niece or a nephew.

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Instead of giving assets directly to that, directly to the beneficiary,

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directly to the child, you give the assets instead to the dynasty trust.

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The child can eventually, at a certain age if they want,

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become a trustee of that trust.

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So the child might exercise some control over investments or withdrawals,

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and the child is the only beneficiary.

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So the child is the one who can receive the assets.

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But during the child’s lifetime, as long as the money stays in that trust,

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creditors have a really hard time breaking in.

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It’s very difficult for a creditor to break into a trust that you designed and

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created for another person. Also,

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it provides protection against loss from divorce.

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So the money in that trust isn’t owned by the beneficiary,

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so it cannot mix with the beneficiary spouse, so it cannot be lost in a divorce.

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Less common is protection from estate tax.

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So money that you own at your death is going to be taxed by the federal

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government for estate taxes.

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If you have more money than the available than you can give away for free.

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But money that goes into a dynasty trust most times is not taxed when the child

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passes away. So you can think the money into dynasty trust might double,

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might triple in value,

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doesn’t mean anything to the government because you already paid the tax on it.

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Therefore, the child doesn’t have to because it’s a very specifically designed,

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tax driven trust.

CLIENT TESTIMONIALS

"I have had the pleasure of working with the Keyes Law Group these past months. To date, Mr. Keyes has been a great asset to our family; helping to plan a trust and the appropriate tax strategies for us and the next generation. What has worked very well for my wife and I is the time Mr. Keyes has devoted to not only hearing our financial planning concerns, but to also take the necessary time to explain and offer options for us to consider. We have worked with tax attorneys and financial consultants over the years. For us, a successful relationship is one of the key factors that we strive for. Working with the Keyes Law Group has been a very good fit for us as we work to get our financial affairs in order." -- RY

"I can’t say enough great things about Keyes Law Group! They are thorough, caring, and extremely efficient! I send everyone I know to them for Estate Planning! They took such great care of my family and they have earned my business forever! Look no further than Keyes Law Group if you want a seamless process and to cover all bases for your estate! They aren’t just Estate Attorneys; they are family!" -SL

"The patience with helping us achieve our goal and the patience in breaking down the legalese into simple language that we could understand was very beneficial. We felt we were very well taken care of." -GR

"We truly appreciate your thoughts, ideas and time. I very much value your expertise and look forward to more dialogue about best ways to move forward, build healthier relationships with our children and their children and to pass on our values to the degree we are able." -R.Y.

"I was able to have a honest dialog with such an understanding, compassionate, and caring human being. Thank you." -Y.H.

"I've had the opportunity to work with Elijah for several years now. I started during a challenging situation with my mother and he was terrific. I'd say he's very responsive, reliable and exceptionally fair. Also very empathetic. It's refreshing to engage with him and feel that I'm being well taken care of and my needs are being met. His staff is also lovely and overall super accommodating." -I.S.

"It is very important to research and choose wisely when looking for an estate planning attorney. Did you know that the California State Bar Board of Legal Specialization has a unique recognition for attorneys who go beyond the regular requirements to practice Estate Planning? Elijah Keyes has this designation; Certified Estate Planning Specialist. He is extremely well versed with this specific area of law and is a strong advocate for his clients in estate planning, including establishing living trusts, wealth planning and family transfers, dynasty trusts, conservatorships, special needs trusts, elder law medi-cal benefits and planning, trust administration and probate. Thank you Elijah, for being a trusted resource for us and for our clients!" -M.H.

"Keyes Law Group helped our family through a very difficult time with estate planning. He's honest, transparent and genuinely cares about his clients. His own personal experiences have shaped his approach in working with people - especially older folks who might be more mistrusting. He can finesse difficult conversations with ease and for that, I'm forever grateful. 100% recommend!" -Y.V.

"Elijah was very helpful with editing our family trust after my wife passed away. He answered all my question in a timely manner and if he did not know the answer he found out quickly. He would take time out of day to reassure me that he had everything under control. He took his time to explain why he worded the trust the way he did and that I understood what it meant. Will use him again when the trust needs to updated." -D.

What Are Dynasty Trusts?

How Dynasty Trusts Work In California

How Keyes Law Group, PC Can Help

What is a dynasty trust?

ADDITIONAL INFORMATION

CLIENT TESTIMONIALS

HOW CAN WE HELP YOU?