Question

What is the original goal behind Dynasty Trusts?

Answer 1

A dynasty trust is an estate planning tool used by wealthy individuals to shelter and transfer wealth from one generation to another generation. These trusts are also used as a tool to protect the property and income from estranged spouse and creditors. The original goal for the creation of these trusts it to avoid estate taxes payable on the transfer of estate from one generation to another and therefore these trusts are known as generation-skipping transfer trusts.