A Dynasty Trust is a complex tool that can effectively eliminate estate taxes, avoid probate, and provide effective asset protection and creditor protection for your heirs, while at the same time allowing investment opportunities and access to income and principal of the trust. Properly created, a Dynasty Trust can also include conditions that limit the likelihood that a wayward heir could jeopardize the passing of wealth on to future generations.
Under the current U.S. tax system, estate and/or gift taxes are levied each time money or other assets are passed on from one person to another, and from one generation to following generations. Dynasty Trusts in Florida are trusts that survive from generation to generation and either vest or are terminated within 360 years of the date the trust was created.
The trusts are typically funded using each person’s estate tax credit (in 2008 - $2,000,000 per person and $4,000,000 per couple), but thereafter typically pass from generation to generation without estate or gift taxes being assessed. That means that distributions from the trust can be received federal tax free by descendents for 360 years after the creation of the trust.
The savings in estate taxes can be staggeringly high. That $4,000,000 plus all the income it produces (less what is distributed to your heirs) can continue to be passed down from generation to generation without being subject to the estate tax, and without having to use up your heir’s estate tax credit.
The attorneys of the Vose Law Firm can advise you as to the appropriate estate planning and asset protection tools that are best for your particular circumstances and desires. One of those tools could be a Dynasty Trust.
If you would like to explore the possibilities of the creation of a Dynasty Trust to protect your family for generations to come, please call us at 407-645-3735 or 1-866-789-VOSE.
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