Estate planning is a complex process, essential for managing your wealth and ensuring that your assets are distributed to the heirs of your choice after your death. Many elements are involved in estate planning, designed to provide the precise protection you desire. One tool you can use to ensure that your wealth is passed on to future generations is a dynasty trust. Your lawyer at The Millman Law Group can help you understand when to use a dynasty trust in Florida. This tool can be highly useful for protection from creditors, long-term financial security, reduced tax liability, and control over asset distribution.
First, What Is a Dynasty Trust?
A dynasty trust is just one of many trusts you may use in your estate plan to provide long-lasting financial security for your heirs. Unlike other types of trusts, which often have a shorter lifespan, a dynasty trust can last for generations. This trust is structured to permit the assets to grow and compound over time, providing your family with a consistent source of income and financial security for generations.
In a dynasty trust, the assets are moved into the trust and managed by a trustee. That trustee is responsible for managing the assets and distributing income to beneficiaries of the trust. The beneficiaries can be your children, grandchildren, or even great-grandchildren.
Protect Your Assets From Creditors
You may wish to use a dynasty trust in Florida to protect your assets from creditors. When assets are held in a properly structured dynasty trust, they are generally protected from creditors, providing an essential layer of security for your assets, which you intend to pass down to your family.
Reduce Estate Tax Liability
Your dynasty trust can also help reduce your estate tax liability. Florida does not have a state estate tax, but there is a federal tax to consider. When you transfer your assets into a dynasty trust, you reduce the size of your taxable estate and potentially reduce your federal estate tax liability.
Long-Term Financial Security
Your dynasty trust in Florida can be an effective way to provide your family with long-term financial security. You can work with your estate planning lawyer to structure your trust to last for multiple generations. By doing so, you can guarantee that your family will have some income and financial security for years instead of only passing down wealth or assets in a lump sum just after your death.
Control Over Asset Distribution
Many individuals choose to use a dynasty trust in Florida because it gives them control over how their assets are distributed after death. When creating this trust, you can specify how and when assets are distributed. This can give you the assurance you need that your wishes will be carried out after you’re gone.
Estate Planning Made Easy With Millman Law Group
Millman Law Group, PLLC is rare because it’s one of the only law firms that offer life planning in South Florida. From life care planning to the preparation of detailed estate plans, Millman Law Group has committed to serving Floridian elderly communities in Boca Raton, Palm Beach County, Ocean Ridge, Hillsboro Beach, and many other areas since 2018. Our dedicated team also specializes in special needs Trusts and catering to any age demographic because we know for certain it’s never too early to start preparing you and your family for your future. For the latest news in estate planning and elder care law, follow us on Facebook, Twitter, Linked In, and Pinterest. You can also contact us at 561-463-6480.