What are dynasty trusts in Arizona?

Wealth preservation is one of the goals of estate planning. For some, the wealth they have may be suitable to pass down to multiple generations. One option to do this in Arizona is through dynasty trusts. This is a type of irrevocable trust, so the creator loses control of the assets once the trust is set up and funded.

On the flip side, many benefits come with this type of trust. Tax benefits are one of the biggest draws to this type of trust. The trust retains control of the assets through multiple generations, which means they aren’t taxed as they move down the generational line.

What are the other benefits of a dynasty trust?

Dynasty trusts established in Arizona can last many generations. This enables the family’s wealth to remain within the family for the long haul.

This type of trust offers protection for the assets. It offers protection against creditors and divorce settlements. It can even prevent irresponsible spending by beneficiaries since the trust can outline specific requirements for how and when the assets are distributed. These may include requirements like obtaining a degree or being a certain age before they’re able to reap the benefits of the trust’s assets.

Setting up a dynasty requires specific steps, so it’s best to work with someone familiar with these. This is only one component of a comprehensive estate plan. Individuals who are handling their estate plan should also have a will set. Powers of attorney designations and possibly other trusts are also necessary. Contact us online or call today for a free consultation with Pennington Law, PLLC.