The Rockefeller family continues to benefit from a Dynasty Trust created in 1952, 61 years after John D. Rockefeller, Jr. died in 1960.

Do you want to make sure your loved ones are taken care of even after you’re gone? One way of ensuring this is with a Dynasty Trust.

What is a Dynasty Trust?

A Dynasty Trust is a type of living trust that allows you to pass down your assets to multiple generations. If done correctly it protects your heirs from creditors, divorce settlements, and irresponsible spending.

If properly drafted Dynasty Trusts can also protect you from changes in estate tax as well. Some specific language can also be added to the trust to protected from an inheritance, gift, and generational skipping transfer tax.

Protecting your family assets with low tax liability saves your family money not year after year, but for generations. Luckily, you don’t have to have Rockeffler billions to protect your assets and save your loved ones from the agony of probate court.

The question remains, How to create a Dynasty Trust in Chandler, Arizona? Here are three tips to get you started on your multigenerational estate plan.

Tip 1: Consult with a Qualified Attorney

If you are a small business owner or have a growing estate who needs to create a Dynasty Trust in Chandler, Arizona, consult with an attorney. This is important because your attorney will help you avoid any legal pitfalls and secure your loved one’s future.

Your Dynasty Trust strategy may be complex due to how it's funded. The funding may include vacant land and income-generating assets that only a seasoned attorney can create.

Be willing to be flexible on cost versus quality of legal services. This will avoid costly mistakes and the need for court intervention.

If you’re still unsure on how to select a qualified attorney, read our article "6 Questions to ask Estate Planning Lawyers Before Hiring."

Planning a multigenerational estate plan requires looking ahead a decade or two. Laws and tax provisions will change. An attorney will help your estate and Dynasty Trust comply with state and federal laws.

The Tax Cuts and Jobs Act, set to end in 2025, federal estate tax exemption went from 11.7 million in 2021 to 12.06 million in 2022.

Citadel Law Firm usually recommends that potential clients that have assets over $2 million discuss creating a dynasty trust for their loved ones.

Tip 2: Dynasty Trust: Include Family Values

Certainly, the passing of the family business on to the next generation and preserving a family heirloom is a part of funding your trust.

When you consult with your Chandler, Arizona Attorney, about your Dynasty Trust, have a list of terms and conditions regarding your family traditions and values.

If milestones are rewarded such as down payments for newlyweds or college education for each grandchild, you can include in the trust why these traditions are important to you.

Outlining the exact instruction on how to proceed for each generation will provide clarity on how to proceed for your assigned trustee.

Tip 3: Choose Your Trustee and Beneficiaries

In 2009, the Rule Against Perpetuities was extended from 90 years to 500 years for Dynasty Trust in the state of Arizona. This generous Arizona trust code gives you the opportunity to outline who will take over the trust after each descendant passes away and what to distribute to new beneficiaries.

Choosing a trustee to manage your trust assets and distributing them according to your wishes for the next two or more generations is something to really think about. We can work with you to suggest a professional trustee. A professional trustee is a company specialized in administering and managing trusts.

Your beneficiary inheritance can be distributed by a responsible close friend, family member, or as we mentioned a professional company. Putting a Dynasty Trust strategy together with a Chandler, Arizona Trust Attorney will advise you on how to choose a trustee and best laid out plans for passing along generational wealth to beneficiaries.

The Pros and Cons of a Dynasty Trust

The tax advantages of paying federal estate tax, inheritance tax, gift tax, and generation-skipping transfer tax one time are winners for many. Arizona residents interested in creating a Dynasty Trust living in the surrounding area of Chandler, Scottsdale, and Phoenix, the pros outweigh the cons.

The Pros include:

• Eliminates a long-drawn-out probate proceeding
• Asset protection from creditors, ex-spouses, and bankruptcies
• Reduce family disputes over inheritance

The Cons include:

• No flexibility for beneficiaries' current circumstances. Although some language can be added for special circumstances.
• The trust may outlive the trustee.

The Cost of Creating a Dynasty Trust

There is not a one size fits all fee structure in creating a Dynasty Trust. The size of your estate and how complex the terms of your trust will determine your cost.

Depending on your estate, the fee can be hourly, a retainer, or a flat fee. The tax advantages and the possibility of no family inheritance disputes save your family from wasted money and heartache. At Citadel Law Firm we usually prefer to offer a flat fee for all the types of trust that we create. We believe in price transparency.

Taking the time to create the best multigenerational estate plan to avoid probate court is a significant saving.

To get a better understanding of the different fee structures of a Chandler, Arizona Trust attorney or estate planning attorney, please read our article "Cost of Estate Planning Lawyer on Average: What you should know."

Schedule a Free Legal Consultation Today

We hope how to create a Dynasty Trust in Chandler, Arizona has provided you some insight on protecting your assets and passing down generational wealth.

Now we would like to hear from you: have you thought about which family traditions need to be part of your trust? Do you know who you want to designate as your trustee and beneficiaries?

If you’re interested in learning more about how this type of trust could benefit you, schedule a free legal consultation with Citadel Law Firm legal team today. You can click here to schedule your free consultation, or call (480)565-8020.

We would be happy to answer any questions you have and help you get started on protecting your family’s future.