As the head of your family, taking the necessary steps to ensure you provide for your loved ones following your passing may be something you want to prioritize. If so, it’s imperative to understand your estate planning options. Often, people assume their only option is to establish a Will. However, this is far from the truth. In reality, you may wish to consider establishing a Dynasty Trust, as this can help care for the future generations of your family. If you’re unsure what a Dynasty Trust is or why you should consider meeting with a Medina County, Ohio Trust preparation lawyer, you’ll want to keep reading as the following blog explores these important matters.
What Is a Dynasty Trust?
A Dynasty Trust is a long-term Trust Fund that allows for the transfer of funds and assets from one generation to the next. The main benefit of this option is that it helps avoid transfer taxes so long as the assets remain in the trust. If established properly, you’ll find that it can last for decades following your passing. As such, your beneficiaries can reap the benefits of potentially millions of dollars by avoiding transfer taxes.
It’s important to understand that these are Irrevocable Trust Funds, meaning once they are established, the terms and conditions of the Trust cannot be changed. Additionally, you will lose all control over the assets included in these Trusts.
Why Should I Connect with a Lawyer To Establish One?
Not only are there several benefits you can reap using a Dynasty Trust, but it’s critical to understand that the contribution limits for Dynasty Trusts are changing come 2026. The current annual increase that has been rising steadily over the past few years is set to end, and the maximum funds you can add to the Dynasty Trust come January 1, 2026, is significantly lower, at 6.8 million dollars. As such, meeting with an estate planning attorney to plan your Dynasty Trust before the limit drops allows you to include a considerable amount of funds.
In addition, you’ll also need to take who you appoint as a Trustee into consideration. Because this Trust can last decades, it may be in your best interest to appoint a bank or other financial institution to manage this asset.
It’s also important to understand that Ohio is one of a few states that allows Trusts to exist for as many years as necessary, ensuring your family is protected for generations.
As you can see, ensuring you take these matters into consideration is critical. At Krause Law, our dedicated estate planning team understands how important protecting your assets and Beneficiaries is to you, which is why we are dedicated to helping you receive the best possible outcome for these circumstances. When you need help, Krause Law is ready to assist you through these difficult times. Connect with us today to learn how we can guide you through these difficult times.
