What are Dynasty Trusts? | Rilus Dana - MAAT Legal

Описание: What Is a Dynasty Trust?
Dynasty Trust is a trust designed to protect assets from potential creditors and estate taxes. The Dynasty Trust is a Sub-Trust, which means that the terms of the Dynasty Trust are contained within an article of a Revocable Trust. The trust will provide instructions to create the Dynasty Trust(s) upon the death of the last trustor. For the purposes of this FAQ, we will refer to the next generation who inherits the Dynasty Trust as the beneficiary.

What Are the Benefits of a Dynasty Trust?
Assets held in a dynasty trust are outside of the beneficiary’s estate, meaning they will NOT be subject to the estate tax when your child or beneficiary passes away. This also means that the assets are out of reach from potential creditors such as bankruptcy, a divorcing spouse or a car accident victim.

We have seen several people experience the loss of a loved one while they are in the middle of bankruptcies or other lawsuits. When these things occur simultaneously the results can be devastating, and inheritances can be lost completely. A dynasty trust protects your family after you are gone.

What Are the Downsides to a Dynasty Trust?
There is an increased cost to your estate plan to include a Dynasty Trust and there will be some increased administration costs after the death of the last trustor to create the dynasty trust(s). The dynasty trust once created will be required to file a separate tax return every year which will increase the annual cost of tax preparation.

How Do I Create a Dynasty Trust?
The first step to creating a dynasty trust is including the specific language in a revocable trust. After the passing of the trustor there is some administration work to ensure the creation of the dynasty trust including obtaining a new tax identification number for the trust and required notices to the federal Internal Revenue Service and state department of revenue.

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Rilus Law is a full-service estate planning, probate, and trust administration law firm serving families throughout Arizona and California. We design custom legal plans to help you preserve your legacy by minimizing taxes and simplifying administration by avoiding probate. We utilize the latest strategies with Revocable Trusts, Last Will and Testaments, Health Care Powers of Attorney and Durable Financial Powers of Attorney, and Digital Asset Planning to ensure that your assets and loved ones are protected when you can’t be there.

Visit https://www.riluslaw.com/
Call 480-924-4424

We also provide assistance with the administration that comes after the passing of a loved one. Whether there was a plan in place, or if there was no planning done, we can help you. While the court probate process can be time-consuming and complex, we make the process easy and provide you with straightforward solutions.

DISCLAIMER:
This video is strictly for educational purposes and is in no way intended to provide legal advice. We do not make any warranties about the completeness, reliability, and accuracy of this information. Any action you take upon the information on this video is strictly at your own risk, and we will not be liable for any losses and damages in connection with the use of our videos.

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ABOUT RILUS DANA
Rilus is a sixth-generation native of Arizona and received a degree in business management from Arizona State University, all while working part-time as an estate planning law clerk for his dad. That planted the seeds of Rilus’ future law practice and core values, as he gained a deep understanding of the importance of legal planning for families.

“What most people want is the peace of mind that everything is in place to work for your family. If something happens to you, I am going to be there for your family.”
Rilus Dana, J.D.

What are Dynasty Trusts? | Rilus Dana - MAAT Legal    • What are Dynasty Trusts?  |  Rilus Dana - ...