Perfect timing – Why now is as good a time as any to create a dynasty trust

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Abstract: A dynasty trust can preserve substantial amounts of wealth — and shelter it from federal gift, estate and generation-skipping transfer (GST) taxes — for generations to come. Leveraging the GST tax exemption is a key to the success of a dynasty trust. The good news is that this trust type is now more appealing than ever thanks to the current record-high GST tax exemption. However, that amount is due to drop to $5 million, subject to an adjustment for inflation, at the end of 2025, so that’s an important fact to keep in mind. This article explores the ins and outs of a dynasty trust.