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What is a Dynasty Trust?

Why Should You Have One in Florida?

by C. Richard Mancini, Esq.

state planning is essential to managing Reduce Estate Tax Liability. Another benefit of a dynasty trust is
your wealth and ensuring your assets that it can help reduce estate tax liability. Florida has no state estate
Eare distributed according to your tax, but there is still a federal estate tax to consider. By transferring
wishes. One of the effective ways to protect assets into a dynasty trust, you can reduce the size of your taxable
your assets and ensure they are passed on to estate from generation to generation without incurring transfer
future generations is through a dynasty trust. taxes—such as the gift tax, estate tax, or generation-skipping
What is a Dynasty Trust? transfer tax (GSTT)—for as long as assets remain in the trust.
A dynasty trust is a type of trust designed to provide long-term Long-Term Financial Security. A dynasty trust is an effective
financial security for your family. Unlike other types of trusts, way to provide long-term financial security for your family.
which usually have a limited lifespan, a dynasty trust can last for By structuring the trust to last for multiple generations, you can
generations. The trust is structured to allow the assets to grow and ensure that your family will have a source of income and financial
compound over time, providing a source of income and financial security for years to come.
security for your family for generations to come. Control over Asset Distribution. A dynasty trust also allows
In a dynasty trust, the assets are transferred into the trust and you to maintain control over how your assets are distributed after
managed by a trustee. The trustee is responsible for managing the your death. You can specify how and when the assets are distributed,
assets, making investment decisions, and distributing income and ensuring that your wishes are carried out even after your death.
principal to the beneficiaries of the trust. The beneficiaries can A dynasty trust is an effective way to protect your assets, reduce
be your children, grandchildren, and even great-grandchildren, estate tax liability, and provide long-term financial security for your
depending on the terms of the trust. family. Consider speaking with an estate planning attorney to discuss
Why Should You Have a Dynasty Trust in Florida? whether a dynasty trust is right for you and your family.
There are several reasons why you should consider a dynasty About the Author
trust as part of your estate plan, especially if you live in Florida. C. Richard Mancini is a stockholder and co-chair of Henderson,
Protect Assets from Creditors. One of the primary benefits of Franklin, Starnes & Holt, P.A.’s Wills, Trusts and Estate Planning
a dynasty trust is that it can protect your assets from creditors. Department. He represents clients in contested estate and trust matters,
Assets held in a properly structured dynasty trust are generally challenged guardianships, and business litigation. As a Florida Supreme
protected from creditors, providing an additional layer of security Court Certified Circuit Court Mediator, Attorney Mancini often serves
for your assets. as a mediator or arbitrator throughout Southwest Florida. He may be
reached at richard.manicini@henlaw.com or by phone at 239-344-1254.

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