Personal Finance
Personal Finance
Dynasty Trusts

Powerful Estate Planning Tool

Passing your wealth to future generations can be complicated. Substantial federal gift and estate taxes are imposed on wealth transferred during your lifetime and at death. A third tax, known as the generation-skipping transfer tax, imposed at the highest transfer tax rate, assesses an additional penalty on assets transferred to grandchildren and great grandchildren. PNC Wealth Management can work with your attorney to pass on your assets without seeing your legacy decimated by taxes. A Delaware Dynasty Trust allows trust assets to grow free of future gift, estate and generation-skipping transfer taxes.

A Delaware Dynasty Trust is a powerful estate-planning tool that can be used to reduce future transfer taxes, as your estate is passed from generation to generation.

Because Delaware allows trusts to be structured to continue in perpetuity, property can be transferred to future generations without being taxed each time.

Dynasty trusts can also achieve non-financial goals.

You can do much more than just ensuring the financial security of future generations. A Settlor can specify the purposes for which distributions will be made. If you place a high value on education, the trust can direct distributions to be made for tuition at the graduate and undergraduate level. Should you wish to encourage among your descendants a strong social conscience, the trust can authorize distributions to encourage careers in the public or non-profit sectors.

 

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