The vast majority of people who are working do so because they are trying to earn a living. It is logical to try to make the most of the time that you spend on the job, and all responsible individuals would like to gain some financial security for the well-being of their family members.
If you are particularly successful doing what everybody sets out to do you may find yourself in possession of some significant financial resources. Because of the federal estate tax and the gift tax with which it is unified, a significant portion of these assets that you set aside for your family could wind up in the federal coffers instead.
For this reason you may have to take action to preserve your wealth, and one way that this can be done is through the creation of a dynasty trust. When you fund the trust you allow for beneficiaries to receive distributions from trust earnings, and this can go on for generations without the assets actually being transferred to any individual.
As a result the estate tax is not applicable but multiple generations are benefiting from the resources that have been placed into the trust.
Laws surrounding these trusts vary on a state-by-state basis, but people often set them up in Delaware because of the asset protection advantages and the fact that the trust can exist into perpetuity. In Connecticut the maximum duration of the trust is no later than 90 years or the lifetime of living persons plus 21 years.
To learn more about dynasty trusts and other advanced estate planning tools simply take a moment to set up an informative consultation with a seasoned and savvy Hartford CT estate planning lawyer.
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