A local law firm recently published a chart which named Nevada as one of the top two jurisdictions that are best for establishing Dynasty Trusts.
A Dynasty Trust is a special trust created to last for multiple generations. They use what is called the generation-skipping transfer tax exemption under the Internal Revenue Code (currently $5.45 million per person) to pass family wealth to multiple generations without being eroded by estate taxes at each generation, which is what happens without a Dynasty Trust. In Nevada, a dynasty trust can last for one day less than 365 years.
Other advantages of a Dynasty Trust include:
- · Protecting trust assets from potential creditor claims against beneficiaries;
- · Reducing a grantor’s estate by the amount of the gift transferred to the trust, plus the appreciation from those assets; and
- · Removing the value of the trust assets from a number of succeeding generations’ estates for estate tax purposes.
-Rebecca J. Haines, Esq.