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Creating A Dynasty Trust In Florida


Many people entering retirement are prepared for the living expenses of everyday life, but few have considered how to protect the lives of their most vulnerable family members, like great-grandchildren. If a great-grandparent indicates that a young descendant should receive a portion of their estate in their will, is this a guarantee that it will occur? Unfortunately, no, but there is one method to ensure that multiple generations live to inherit the wealth you worked so hard for. A dynasty trust is one option for families wishing to pass assets on for a dynasty, or hundreds of years into the future.

Process for Creating a Dynasty Trust

What is the difference between a dynasty trust and a living trust? Dynasty trusts are not reserved for the elite or extremely wealthy. In fact, creating a dynasty trust is a practical tool to ensure you provide for your children, grandchildren and great-grandchildren long after you pass on. Unlike a living revocable trust, which can change at any time and only governs the distribution of assets to named beneficiaries in the revocable trust, a dynasty trust will provide for direct descendants of your family for more than three hundred sixty years and countless generations. If you built a nest egg and want to guarantee that your grandchildren, great-grandchildren, and their children’s children can still benefit from your foresight and strategic planning, a dynasty trust is the only method to guarantee their access to their birthright without paying transfer taxes or subjecting the assets to creditors and the prying hands of other parties.

Benefits of a Dynasty Trust

A dynasty trust must be irrevocable and created while the grantor is still living and made irrevocable. Any financial assets, investments, stocks, securities or real property can be added to a dynasty trust, which is maintained and overseen by a trustee designated by the grantor. A trustee handles administration of assets to beneficiaries and any legal documentation or procedural issues that occur. Because of dynasty trust length, usually a provision is added to appoint successor trustees to continue the trust administration in perpetuity. Usually, a substitute trustee is listed if the first trustee cannot perform their duties. Any assets placed in the dynasty trust are not subject to estate tax or transfer tax. And, even if your child divorces a spouse or declares bankruptcy, whatever distributions you previously elected to be designated to your grandchildren cannot be proffered as collateral during insolvency proceedings or divided as equitable property in divorce proceedings with a son or daughter-in-law. As the grantor, you decide how assets are distributed, how often and in what amounts. If you wish that grandchildren do not receive distributions until they are 25, 30, or 50, you can state that in the trust. If you want the trustee to make direct distributions to beneficiaries, you can make that election as well.

Contact Us Today for Help

If you are contemplating your estate plans, but are concerned about taxes or complications, you should speak with a Tampa estate planning lawyer at Bubley & Bubley, P.A. Reach out to us today for a consultation.

Location & Directions

Bubley & Bubley, P.A. is located in Tampa, FL and serves clients in and around Brandon, Odessa, Tampa, Oldsmar, Land O Lakes, Thonotosassa, Valrico, Wesley Chapel, Lutz, St Petersburg, Plant City & Brooksville, Safety Harbor, Holiday, Trilby, Crystal Beach, Ozona, Apollo Beach, New Port Richey, Clearwater, Tarpon Springs, Port Richey, San Antonio, Spring Hill, Lithia, Pasco County and Pinellas County.

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