Skip to Content

We are a Veteran Owned Business, providing 20% discounts for Veterans, First Responders, Elementary and High School teachers. Please contact us to set up a phone or Zoom meeting. Taking care of you and your family, It's What We Do!

Dynasty Trusts

What is a Dynasty Trust?

In Estate Planning, a Dynasty Trust is an Irrevocable Trust incorporated into a Will or Revocable Living Trust designed never to end, but instead continue perpetually providing for descendants. A Dynasty Trust may also be included within other Irrevocable Trusts, such as Irrevocable Life Insurance Trusts and Disclaimer Trusts.

What is the Purpose of a Dynasty Trust?

A Dynasty Trust shelters the trust assets over generations from death taxes as well as the beneficiaries’ divorces and creditors. A Dynasty Trust can contain Special Needs Trust language, so a recipient is not excluded from needs-based government programs. If a beneficiary cannot be trusted to manage their money, a Dynasty Trust can be designed to protect the recipient from themselves. It is an excellent device to keep assets within the family. If developed and managed correctly, a Dynasty Trust may also be a significant tool to avoid state income taxes.

Example: Father’s Will divides his assets into shares down his bloodline which, at his death, is two equal shares one for Son and one for Daughter. At Father’s death Son is being sued. If drafted correctly, the Dynasty Trust shelters the inheritance from Son’s creditors. At Father’s death Daughter is divorcing. If written correctly, the Dynasty Trust shelters the inheritance from Daughter’s spouse.

Example: Using the facts from the prior example, Son dies soon after Father survived by his three children. The Dynasty Trust divides the remaining trust assets into three equal shares, one for each of Son’s children, and the Dynasty Trust continues.

Typical Estate Questions About Dynasty Trusts:

Here are some questions clients, beneficiaries, and Trustees ask:

What is the maximum amount of time a Dynasty Trust can be open?

Each state has rules dictating how long a Dynasty Trust may last. Several states, such as Pennsylvania and New Jersey have no time limit. Dynasty Trusts can last forever in these states.

Can I set an end date for a Dynasty Trust?

Yes, For example, you can say the Dynasty Trusts end at a specified date or the death of the last grandchild.

Do new children born or adopted by descendants get added automatically to a Dynasty Trust?

You can include or exclude anyone from a Dynasty Trust.

Does a Dynasty Trust have to include only family members?

No, you can include anyone. Though, as the term indicates, most people limit beneficiaries to their descendants.

Can a charity also be a beneficiary of a Dynasty Trust?

You can incorporate a charity into a Dynasty Trust. For example, you could say that each Beneficiary’s death, 10% of the trust’s assets pass to Penn State.

Reasonable Prices | Years of Experience | We Make Trusts and Estate Planning Easier

If you have any questions about Dynasty Trusts or any other estate planning topics, please contact us to schedule a free consultation. For more than two decades Klenk Law has focused only on Estate Law. We’ve seen it all, and this experience allows us to explain complex estate law and planning techniques clearly and concisely. We make it easy for you to understand Dynasty Trusts and Estate Planning so you can make the best decisions for yourself and your family.

What Our clients are saying

Klenk Law Logo
Stars

Mr. Klenk has been easy to work with. I am confident he has given me good advice whenever I have called upon him. He has shown good work ethic and depth of knowledge in preparation of estate, wills, and trusts that I have worked with him on.

Klenk Law Logo
Stars

Joe Peters

Always professional and very responsive. Everyone on the staff that I have worked with. I look forward to continuing our relationship.

Klenk Law Logo
Stars

Glenn P.

Peter Klenk ESQ is a thoughtful and capable attorney who we work with on estate planning issues. His firm recently provided us with new Wills, Power of Attorneys and our instructions regarding major health issues. These documents are important for estate and life planning. Peter and his team are masters in the complexities of Estate Law. We highly recommend Peter and his Associates to provide thoughtful advice and outstanding work on these complex issues of the law. Make sure your estate planning documents are up to date, and Peter can be relied on to do an excellent job. Well done Peter!

Klenk Law Logo
Stars

Bill

I met Peter soon after he started his practice in Philadelphia, PA. He and his team have always been there for me and my various inquiries throughout my life-changing events, corporate relocations. I have lived in various cities throughout the nation, I have never had a problem in contacting Peter or a member of his team. He and his office responds quickly and returns calls to me to fulfill my requests for information or to revise my estate needs while posing relevant thought-provoking questions that I need to consider to secure my future. One of Peter's best qualities is his ability to answer clients complicated questions in a simple way to ensure comprehension.

Klenk Law Logo
Stars

Linda F.

I'm totally satisfied with Klenk Law. Peter has a great legal mind with the personality of the guy next door.

Let us put our expertise to work for you.

Free consultation within 24 hours.