A main concern that many Michigan residents may have when considering the estate they will leave behind is how to best protect their assets. There are many estate planning options that could help parties address such a concern, and trusts can be some of the most useful. This planning tool can be particularly helpful because there are many iterations that could suit a variety of needs.
If individuals are hoping to leave behind a legacy in terms of wealth, a dynasty trust could potentially help them achieve this goal. Dynasty trusts offer many of the same protections that other types of trust do, such as allowing for the avoidance of estate tax and keeping creditors away from assets. Additionally, this trust can also allow for the building of wealth over multiple generations. In fact, this type of trust could go on indefinitely if allowed by state law.
It is true that properly crafting a dynasty trust can prove complex, but it is a manageable endeavor. By gaining information on long-term investments and how asset consolidation and preservation could benefit future generations, many individuals may find this planning option appealing. Additionally, people may feel a greater sense of connection with their families as they know they can help provide for generations to come.
The tools that will prove most useful to an individual will depend on his or her specific circumstances. Exploring dynasty trusts and other types of estate planning tools may help Michigan residents gain a better idea of how they would like to craft their plans. Knowledgeable attorneys could help answer questions and provide assistance throughout the process for interested parties.
Source: wealthmanagement.com, “Demystifying Dynasty Trusts“, July 11, 2017