DGAA bLAWg

The Dynasty Trust: A New Method of Creating an Inheritance

Web Admin - Thursday, March 20, 2014

illinois trusts estate planning attorneyDynasty trusts are a new type of trust that can be used to minimize the burden of certain taxes that the government levies on inheritance by holding the inheritance in a trust for many generations. These trusts have become more popular in recent years as states have begun to relax or abolish a legal doctrine known as the rule against perpetuities. The rule is a complex legal doctrine that limited the length of trusts and other legal instruments to only lasting a certain period of time, usually about two or three generations, depending on a variety of factors. Now that the rule is being relaxed, it has made dynasty trusts a more viable option.

What is a Dynasty Trust?

Simply put, a dynasty trust is a trust that holds assets from which future generations will benefit. This has important tax consequences because assets placed into a dynasty trust are subject to the federal estate/gift tax only once. This means that the assets can flow down to further generations without future estate taxes. For instance, if a person left $10,000,000 to their child without using a trust, this would exceed the gift/estate tax exemption, so it would be subject to the tax. Then, if that inheritance appreciated in value and the child passed it on to a grandchild, it would be subject to another round of taxes. If, instead of simply passing the money down in the first place, the person had placed it into a dynasty trust, then the original $10,000,000 would be taxed at that point, but it the appreciated amount would not be subject to another estate tax when it went to the grandchild.

Another benefit of the dynasty trust is that it can help reduce the effects of the generation skipping transfer tax (GST). The GST exists because people used to leave money directly to their grandchildren in an effort to avoid the double estate tax of the previous example. The GST can take as much as 55 percent of the money passed down to grandchildren in excess of $1,000,000. If the dynasty trust is created using that $1,000,000 dollar exemption, then it can sizably reduce the burden of transfer taxes on future generations.

This means that the dynasty trust can be a very useful estate planning tool for people with large families, or those who have enough assets that the estate tax and GST are serious concerns. Additionally, dynasty trusts are also useful for people who would like to have some say as to how their money is spent after their deaths because dynasty trusts can sometimes be used to control such things.

If you believe that your estate planning could benefit from the use of a dynasty trust, contact a Long Grove estate planning attorney today. Our firm helps handle tax planning issues for clients across the northwest suburbs, including towns like Riverwoods, Barrington, and Kenilworth.

About the Author: Attorney Jay Andrew is founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.


Recent Posts


Tags

Inverness elder law lawyer whistleblower protections Palatine workers compensation lawyer Arlington Heights insurance attorney sexual harassment Inverness probate lawyer Illinois defective products attorney employment attorney pedestrian accident Illinois insurance attorney Crystal Lake bike accident lawyer back injuries personal injury lawyer condo association medical marijuana college kids Arlington Heights estate planning attorney Jay Andrew fiduciary rule delay unauthorized overtime drug crime holiday statistics Inverness DUI lawyer Illinois wills and trusts attorneys unpaid assessment DUI IRA benefits Crystal Lake car accident attorney income distribution deducation Buffalo Grove injury lawyer estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers Rolling Meadows DUI lawyer BAIID traffic laws Arlington Heights TBI attorney Rolling Meadows accident lawyer nursing home negligence Deer Park DUI lawyer traumatic brain injuries Palatine probate lawyer operating agreements Barrington medical malpractice lawyers Food and Drug Administration's Food Safety Modernization Act Illinois will lawyer life insurance claims work unions criminal record Rolling Meadows probate lawyer Landlord Tenant Ordinance Illinois registered agent Illinois elder law attorney pet bites drunk driving traffic tickets Chicago traffic lawyer Des Plaines claims law firm probate process employment contract spinal cord injuries GM ignition switches Buffalo Grove corporate attorney Arlington Heights wills and trusts attorneys Schaumburg social media after death Schaumburg estate attorney Illinois estate planning law firm truck collisions Illinois tax attorney ken apicella Illinois personal injury Crystal Lake personal injury attorney Schaumburg employment law attorneys probate claims medication errors internet federal regulations for LLCs employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys Buffalo Grove traffic lawyers pizza emoji rollover car crashes homestead rights Liquor Control Act Arlington Heights trucking lawyer breach of contract Illinois probate lawyer accidental death benefits medical malpractice DUI attorney Illinois real estate Barrington estate planning lawyer fiduciary rule Home Remodeling Repair Act commercial real estate medical research Illinois rollover accident lawyers job lawyers Buffalo Grove real estate attorney underinsured motorist jet ski accidents real estate attorney dog bites IRS Chicago employment lawyer Arlington Heights medical malpractice lawyer digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers employee misclassification Rolling Meadows estate planning attorney healthcare claims Buffalo Grove personal injury attorney living trust benefits Rolling Meadows insurance dispute lawyers, insurance dispute tax attorney Illinois insurance claim dispute lawyer product liability corporate law compensatory time Chicago insurance claim attorneys Illinois pedestrian accident attorney Long Grove real estate lawyer Buffalo Grove traffic attorney personal injury attorney employee rights uninsured motorist Des Plaines drug crimes lawyer blood alcohol content natural gas construction accidents financial advisors Schaumburg personal injury lawyers first degree murder Palatine personal injury lawyer Illinois insurance lawyer estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, traffic violations defense Chicago will attorney Des Plaines personal injury attorney Illinois bicycle safety wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace Schaumburg criminal law attorney personal injury law firm civil rights violation license reinstatement comp time Employment Discrimination Law Crystal Lake employment lawyer Palatine trusts lawyer traffic accidents Schaumburg traffic lawyer insurance claim in terrorem provision Arlington Heights tax lawyer medical malpractice compensation digital assets Buffalo Grove probate lawyer Rolling Meadows litigation lawyer Illinois workplace discrimination attorney special needs trust traffic crimes Schaumburg Attorney estate planning for college students Illinois Transfer on Death Instrument Buffalo Grove employment lawyer Illinois traffic accident lawyer insurance denials Whistleblower Claims Illinois Workers’ Compensation Commission traffic violations bad faith insurance claims institutional trustee insurance adjusters Illinois wills and trusts Des Plaines advance healthcare directive Illinois employment attorneys preventable medical errors natural gas explosion Illinois Smoke Detector Act subcontractor trucking accidents insurance negligence Arlington Heights Attorney Schaumburg criminal attorney Arlington Heights employment attorney Super Mario insurance denial appeals suspended license Arlington Heights traffic attorney Palatine traffic accidents marijuana crimes attorney criminal Illinois lawyer Barrington criminal defense lawyer Rolling Meadows traffic law firm Crystal Lake accident attorney drugs Deer Park medical malpractice attorney DUI penalities Illinois personal injury attorney consent to a search Illinois LLC creation startup company employment law living trust Illinois Trust Code commercial leasing Des Plaines insurance attorney Deer Park personal injury lawyer mass shooting manufacturing Illinois employment lawyer wage theft Crystal Lake injury attorney Illinois medical malpractice case sole proprietorship Illinois insurance claim dispute lawyers dynasty trusts Buffalo Grove car accident lawyer civil litigation attorney Crystal Lake tax lawyer Illinois medical malpractice lawyers Palatine civil litigation lawyer Illinois injury lawyer insurance claim dispute attorney Illinois employee rights attorney. privacy life insurance Rolling Meadows traffic attorney IRA trust transfer Crystal Lake business law attorneys agent Class A misdemeanor insurance agents Buffalo Grove criminal defense lawyer TBI Illinois estate planning attorney Illinois workplace lawyer pregnant women workplace sexual harassment Des Plaines real estate lawyer Illinois corporate lawyer Barrington employment law firm Illinois civil litigation lawyer South Barrington real estate attorney insurance disputes murder charges slip and fall surgical mistakes Schaumburg elder law lawyer pedestrian injuries, pedestrian fatality Schaumburg corporate attorney Barrington real estate lawyer Arlington Heights personal injury lawyer Rolling Meadows insurance attorney BAC car crash injuries Fourth of July driving Inverness real estate attorney Illinois employment law attorney Palatine estate planning lawyer POA Inverness real estate lawyer license medical malpractice claims car accidents car accident lawyers Inverness injury lawyer Illinois workers compensation attorney Detainer Actions involuntary manslaughter Illinois collections attorney defective products insurance agent negligence insurance dispute attorney Barrington criminal lawyer wrongful death Illinois red light cameras fault based insurance Barrington attorney Palatine insurance lawyer elder abuse Rolling Meadows insurance lawyer Des Plaines personal injury lawyers life insurance lawyer Barrington personal injury lawyer pain and suffering Arlington Heights personal injury attorney Arlington Heights wills and trusts lawyer Inverness corporate attorney Illinois jet ski accident lawyer Crystal Lake car accident lawyer car crash Rolling Meadows personal injury lawyer Arlington Heights wills and trusts lawyers Rolling Meadows car accident lawyers hands free device Schaumburg estate planning attorney Illinois car accident attorney Mt Prospect Attorney sexual images Schaumburg wrongful death attorney IRELA Barrington employment law attorney Schaumburg real estate lawyer Chicago estate planning lawyer living wills overtime violations Thanksgiving Barrington Traffic Lawyer criminal defense Schaumburg probate attorney vacation home fines Buffalo Grove insurance claim dispute lawyers trust payments federal crimes Crystal Lake traffic lawyer independent contractor Long Grove estate planning boating under the influence Chicago lawyer life insurance policy Illinois traffic attorneys real estate closing crossover accidents Schaumburg construction accident lawyer medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers Arlington Heights injury attorney Illinois pet lawyer insurance claim dispute pet law comparative negligence workers comp guardianship attorney disability benefits Kenilworth estate planning attorneys estate planning trusts Schaumburg personal injury attorney digital evidence severance agreements slip and fall accidents investment property Illinois small business Crystal Lake medical malpractice attorneys bike accident overtime pay Kenilworth estate planning attorney license revocation Schaumburg car accident attorney Rolling Meadows tax attorney Illinois insurance claim attorney Chicago corporate attorney expungement Crystal Lake insurance lawyer Deer Park traffic lawyer probate claims process brain injury trench injuries Chicago insurance law firm license suspension controlled substance Des Plaines collections attorney wills real estate leasing boating accidents landlord Long Grove real estate attorney Illinois traffic laws revenge porn Rolling Meadows insurance dispute lawyers Crystal lake insurance dispute attorney Schaumburg employment attorney Inverness accident lawyer Mount Prospect wills and trusts lawyers Des Plaines real estate attorney texting and driving home inspection lawyer Des Plaines medical malpractice attorney Illinois Sales Representative Act Illinois boating accident lawyer car crashes Illinois employment law Des Plaines DUI attorney insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys Illinois insurance disputes motorcycle accident lawyer Crystal Lake estate planning lawyer Arlington Heights criminal lawyer Rolling Meadows boating crash lawyer Crystal Lake civil litigation lawyer Forcible Entry filing a medical malpractice claim Palatine criminal defense lawyer Rolling Meadows medical malpractice lawyers drug possession Chicago trucking accident attorney bicycle accidents Illinois mortgages Crystal Lake law firm Illinois trucking safety Affordable Care Act PTSD Crystal Lake medical malpractice lawyer cell phone Illinois real estate lawyer Rolling Meadows personal injury attorney Long Grove estate planning attorneys employee discrimination LLCs drug crimes lawyer residential real estate car accident DGAA texting while driving modern family estate planning Illinois job attorney employees boating DUI probate Illinois Probate Act of 1975 llinois Real Estate Lawyers Association estate tax rent to own real estate contracts Inverness insurance attorney underage DUI pay when paid contract Kenilworth estate planning lawyer Illinois Wage Payment and Collection Act probate lawyer landlord tenant law capital gains tax Chicago biking tips Arlington Heights wills and trusts attorney Palatine Attorney Des Plaines civil attorney motorcycle accident jet ski Attorney Ken Apicella attorney fees drug crimes Rolling Meadows employment law attorney installment contracts Rolling Meadows Illinois living will golf accidents foreclosed rental property blended families Palatine civil attorney commercial leases Schaumburg drug defense lawyer personal injury claim real estate lawyer Illinois traffic attorney trusts insurance claim denial taxes Barrington personal injury attorney gift taxes Deer Park employment law attorney Illinois trusts attorney Deer Park criminal attorney Rolling Meadows criminal attorney insurance claim denials Illinois employment laws Illinois workers compensation lawyer Exclusions gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys traumatic brain injury hit and run accident distracted driving accidents preventing accidents Illinois insurance dispute lawyers Des Plaines personal injury lawyer Palatine construction attorney BUI Inverness traffic law firm Crystal Lake will lawyer Rolling Meadows Attorney rumble strips Arlington Heights car crash attorneys workers compensation benefits Deer Park accident attorney CAM rest breaks Barrington civil litigation attorney appealing an insurance claim construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation Mount Prospect real estate lawyer Rolling Meadows employment attorney cell phone accidents Palatine employment law lawyer Illinois business law atorneys murder defense irrevocable trust caretaker rights business litigation Rolling Meadows drug defense attorney Illinois medical malpractice claim Rolling Meadows business lawyer eluding a police officer anesthesia errors Palatine law firm DUI defense traffic offenses unfunded trust Palatine injury attorney Illinois construction accident attorney Illinois employment law attorneys real estate contract Crystal Lake personal injury lawyer Federal Food Drug and Cosmetic Act trucking accident lawyers Crystal Lake employment attorney wills and trusts trauma after an accident personal injury accidents power of attorney Schaumburg medical malpractice lawyer wrongful termination Schaumburg civil litigation attorney underfunded trust digital media accounts, estate planning, Arlington Heights estate planning attorney, clemency Illinois attorney real estate health insurance dispute Palatine traffic lawyer dram shop law Arlington Heights lawyer meal breaks problem employees Palatine employment lawyer Barrington employment attorney Deer Park real estate law firm Crystal Lake pet attorney Arlington Heights Traffic Lawyer Colin H. Gilbert Palatine corporate law attorneys Deer Park traffic accident attorney Crystal Lake employment law attorney employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, drunk driving statistics Rolling Meadows Traffic Lawyer Fair Labor Standards Act Crystal Lake traffic attorney Buffalo Grove medical malpractice lawyers icy parking lots auto accidents Illinois criminal defense attorney minimum wage Illinois employment law firm mortgage Illinois insurance claims lawyers paid sick leave Des Plaines tax law firm Palatine corporate attorney employment lawyer Des Plaines criminal attorney right to work DNR Rolling Meadows marijuana attorney Rolling Meadows real estate attorney marijuana Self-Directed IRA Accounts liability Des Plaines injury law firm field sobriety test foreclosure Illinois personal injury lawyer FSLA Barrington injury attorney digital information Palatine punch death personal injury caregiver Rolling Meadows employment law attorneys estate planning attorney Illinois Human Rights Act DMV small business Arlington Heights accident attorney personal injury claims Inverness civil lawyer child safety employment law, Illinois employment laws Inverness personal injury attorney Barrington boating accident attorney construction contracts swimming pools living trust vs will rollover accidents real estate zoning Palatine drug lawyer Illinois estate planning healthcare new real estate form Chicago car accident lawyer insurance claim delay Crystal Lake criminal defense attorney Retaliatory Discharge Arlington Heights pedestrian accidents FMLA creditors Deer Park motorcycle accident lawyer Inverness estate planning lawyer Illinois motorcycle accident lawyer School Visitation Rights Act Joliet general practice lawyers products liability Illinois DUI attorney Legal Info loopholes ACA insurance attorney owner responsibility premises liability estate attorney Transfer on Death Instrument Do Not Resuscitate loss of consortium Schaumburg injury lawyer Barrington Illinois estate planning lawyer South Barrington real estate lawyer Colin Gilbert low-ball insurance settlement estate planning Rolling Meadows personal injury lawyers unpaid overtime Riverwoods estate planning lawyer senior citizens Illinois driving without license car collision criminal law Mount Prospect elder law attorney Illinois home inspection Long Grove estate planning attorney defective products lawyer Barrington litigation attorney probate fees Palatine elder law attorney bicycle dooring accidents estate plan Chicago attorney hiring employees Chicago estate planning denied insurance claim Palatine real estate lawyer changes to mortgage law Crystal Lake pedestrian accident lawyer Deer Park workers compensation lawyer real estate attorneys Des Plaines accident attorney no contest clauses head on collisions Illinois business lawyer Barrington drug crime attorney Rolling Meadows criminal lawyer Rolling Meadows corporate lawyer Des Plaines motorcycle accident attorney Arlington Heights real estate lawyer Illinois personal injury lawyers automated cars Arlington Heights employment law attorneys Schaumburg personal injury lawyer pedestrian-automobile accident condo spinal cord injury dealing with problem employees insurance dispute liens Home Sale Contingencies Illinois medical malpractice attorney Illinois speeding lawyer denial of life insurance insurance claims elder law ObamaCare civil litigation Buffalo Grove personal injury lawyer Illinois traffic ticket lawyer denied insurance claims personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys forming a corporation in Illinois deadly crashes liability claims coronavirus murder Des Plaines Traffic Lawyer Palatine employment attorney food poisoning distracted driving accident victims Long Grove wills and trusts attorneys fatal car accidents traffic deaths trustee Illinois law contracts Buffalo Grove law firm Illinois Policy Cancellation pedestrian accidents privacy laws Family Medical Leave Act Barrington estate planning attorney insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys Palatine business attorney Crystal Lake medical malpractice law firm power of attorney for healthcare Arlington Heights car accident lawyer Chicago will attorney, social media platforms, Illinois estate planning lawyer, Schaumburg estate planning lawyer deed transfer car accident lawyer estate planning lawyer breathalyzer test Chicago employment attorney Illinois wrongful termination lawyer vacation home Des Plaines pet law attorney Barrington workers compensation attorney Barrington business law firm reckless homicide workers compensation Des Plaines drug lawyer Schaumburg insurance lawyers cell phone tower data speeding

Archive