Mini Case Study: Dynasty Trusts
This week, we helped one of our multi-generational financial planning clients in the Bay Area fund a Dynasty Trust that his grandfather established.
Here’s what that looked like:
Many years ago, Arthur was prescient enough to buy commercial real estate all over the Bay Area, and then was patient enough to hold it for multiple decades.
Arthur was also very concerned about making sure that his estate remained solely with his family, so he established dynasty trusts for the benefit of his children and grandchildren.
Those dynasty trusts were set up to exist for as long as the law would allow them to in California, and were funded with shares of LLCs that in turn owned the underlying real estate. This allowed: 1) Arthur and his beneficiaries to benefit from discounts on the value of those transfers, and 2) for all of the growth to occur outside of Arthur’s estate.
Fast forward many years to when one of his adult children died a few years back: the trusts continued, and the only thing that changed was the beneficiary.
This week, we worked with the family’s estate tax attorney and their CPA to get everything in place for the 3rd generation to now benefit from this trust.
All of this planning has saved this family millions in estate taxes, provided control over the family assets, and most importantly, provided a level of asset protection that gives everyone an additional degree of peace of mind.
If you are a patriarch or matriarch that controls an estate over $10M, a Dynasty Trust should be on your radar.
Send me an email (rob@swrpteam.com) or book a time on my calendar (https://calendly.com/rob_summit-wealth-calendar) if you’re dealing with a similar situation and need a trusted Advisor that can help.
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