Friday, October 14, 2016

Nevada Remains a Top-Ranked Dynasty Trust State

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.
To discuss whether a Dynasty Trust is right for you, please contact the attorneys at Jeffrey Burr, LTD. today.

-Rebecca J. Haines, Esq. 

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