Dynasty Trust - What is it?
A dynasty trust is an irrevocable asset protection trust created for the benefit of a third party. This trust may be an irrevocable inter vivos trust created during your lifetime or it may be a trstamentary trust created after your death. This type of trust will stay in effect until the rule against perpetuities forces it to terminate. The rule against perpetuities states a trust must terminate 21 years after the death of the youngest then living beneficiary of the trust identified at the time the trust is created. This means if a trust is created for the benefit of a child with remainder to that child's descendants, then the trust will terminate 21 years after the death of the youngest descendant of that child that is living at the time the trust is created. This could very well make the trust last for over 100 years. If you would like to receive more information regarding this type of trust, please contact my office to schedule a free consultation regarding the same.