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Dynasty Trust Provisions

What is it?

A dynasty trust is designed to last for multiple generations—potentially forever in states that have abolished the rule against perpetuities. Rather than distributing assets outright to each generation, the trust continues, providing benefits to descendants while keeping assets protected from estate taxes, creditors, and divorces at each generational level.

Why is it important?

Family Fortunes documents how wealthy families maintain wealth for generations: they don't give money away—they keep it in protected structures that benefit family members. A properly structured dynasty trust can provide for your children, grandchildren, great-grandchildren, and beyond, while estate taxes are paid only once (when you fund the trust) rather than at each generation.

Example Language

This Trust shall continue for the maximum period permitted by applicable law. At no time shall any beneficiary have the power to withdraw trust principal or to direct its distribution in a manner that would cause inclusion in such beneficiary's taxable estate. Each generation shall have the benefit of trust assets without the burden of estate tax inclusion.