Multi-Generational Wealth
Without long-term planning, wealth can shrink at each generational transfer through estate and generation-skipping taxes. A dynasty trust, properly structured, can hold family wealth across multiple generations without estate tax at each transfer — and protect it from creditors, divorce, and erosion along the way.
What you should know
- Federal estate tax can apply at each generational level above the federal exemption. Over multiple generations, the compounding effect can significantly reduce family wealth.
- A dynasty trust is an irrevocable trust designed to hold and grow family wealth across multiple generations without being subject to estate tax at each generational transfer.
- Alabama allows dynasty trusts to last hundreds of years — long enough to cover many generations and significant flexibility.
- The Generation-Skipping Transfer (GST) tax is a separate federal tax on transfers to grandchildren and beyond. Proper allocation of the GST exemption at funding is what shields appreciation from GST tax at each later generational transfer.
- A dynasty trust can hold assets in a spendthrift structure with HEMS distribution standards, keeping wealth protected from creditors, divorce, and imprudent spending at each generation.
Does a dynasty trust fit your family?
Five short choices. Brent reads your answer back to you at the end.
A 30-second guided quiz. Get a personal read on whether a dynasty trust fits.