Tampa Dynasty Trust Attorney

We all want to leave a legacy for our children and other descendants. If you are looking to pass down a financial legacy of inherited wealth, one way to accomplish that is through a long-term trust. Often referred to as a “dynasty trust,” this is a legal method of preserving the wealth you have spent a lifetime building so that it can be enjoyed years–even decades–after you are gone.

Dynasty trusts are more complex than the revocable living trusts more commonly associated with estate planning, As such, it is important to work with a qualified Tampa dynasty trust attorney who can assist you in setting up and funding these types of trusts. Knudsen Law is a dedicated Florida estate and probate firm that has advised many high-net worth families with their trust needs.

How Do Florida Dynasty Trusts Work?

It was once common for most states in the United States to enforce a “rule against perpetuities” with respect to trusts. Essentially, this rule meant that a trust could not continue for more than 21 years after the death of the last beneficiary who was living when the trust was initially created. In recent years, many states have either abolished the rule against perpetuities, or significantly extended the time a trust can last. Here in Florida, a trust created on or after July 1, 2022, can last up to 1,000 years, effectively making the rule against perpetuities a non-issue. So you can effectively use a dynasty trust to pass wealth from generation to generation–basically, as long as some assets remain in the trust.

A dynasty trust is a type of irrevocable trust. In other words, once you create a dynasty trust and fund it with assets, you generally cannot change the terms of the trust or reclaim those assets for yourself. On the other hand, because the trust is irrevocable, any assets placed in a dynasty trust are not considered part of your taxable estate for federal estate tax purposes. The initial transfer may still be subject to federal gift or estate tax if it exceeds the then-applicable federal exemption, however, which as of 2024 is $13.61 million (or $27.22 million for married couples).

Dynasty trust assets are still subject to federal tax on any income generated. Conversely, any appreciation of trust assets is not counted against the original grantor’s taxable estate. And as an irrevocable trust, any creditors of the grantor or the trust’s beneficiaries typically cannot touch the dynasty trust’s assets prior to any scheduled distributions. In that sense, a dynasty trust can provide valuable protection against both potential tax and creditor claims.

Contact the Tampa Dynasty Trust Attorneys at Knudsen Law

Dynasty trusts come with significant costs and potential risks that need to be carefully weighed. Remember, a dynasty trust is irrevocable, so it can not be easily undone after the fact. That is why you need to work with an established Tampa dynasty trusts attorney who can walk you through each stage of the process. If you would like to speak with a lawyer about your trust and estate planning needs, contact Knudsen Law today at (727) 398-3600 to schedule a consultation.