Dynasty Trusts: Not Just for the Super Rich!

[@karlaatherton]

Very valuable information, thank you so much. Question: let's pretend we have a Dinasty Trustee, 20 years down the road I am dead and the company/law firm, etc no longer exist. Who/how will someone continue to enforce and keep the entity legal and going?

[@CunninghamLegal]

Great point! This is why it’s important to find an “A-Team” to ensure your wishes are carried out. The trustee is responsible for carrying out the terms of the Dynasty Trust as written. The trustee can work with a lawyer or law firm, CPA, and financial advisor to make sure everything is properly handled.

[@kenm2679]

Very nice and informative. Thank you for this presentation.

[@CunninghamLegal]

Our pleasure!

[@martininportland]

At 24:54 min on the Best States for Dynasty Trusts slide you state "none of these states have state income tax." Delaware definitely does have a state income tax.

[@CunninghamLegal]

You are correct! Delaware has a graduated state individual income tax, with rates ranging from 2.2% to 6.6%. As of 2023, eight states - Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming - do not levy a state income tax. The purpose of the slide was to demonstrate the best states for Dynasty Trusts- the 15 states that have abolished the rule against perpetuities.

[@danniebaker1118]

How much your company charge for set up the dynasty trust? I'm live in San Diego area

[@CunninghamLegal]

Hi there. In order to quote legal fees, we ask that you come in and see us so we can tailor an estate planning strategy that is best suited to your needs. We do not have a physical office in the San Diego area, but we work very effectively via Zoom or a phone call. Please contact our office to learn more about our remote consultation options: www.cunninghamlegal.com/california-law-offices/contact/

[@jefferyk.spellerberg176]

What do you think of Tennessee - it was a "will state" until 2011, then it went all in on dynasty trusts, 300+ terms, basically trying to "ape" Alaska, Nevada, etc... What you said about Texas small county judges was very interesting...

[@omulangilalumaamakalemeera5118]

❤❤❤🎉🎉exquisite submissions indeed.

[@CunninghamLegal]

Thank you!

[@leiluo3027]

I live in Fremont, CA, can I put my house and my brokerage account into a Dynasty Trust ?

[@CunninghamLegal]

Yes, you can set up your living trust in a way so that when you do pass away, those assets can go to a Dynasty Trust. Many of our clients do just that. Here's some additional information on Dynasty Trusts and our contact information: www.cunninghamlegal.com/dynasty-trusts-and-multi-generational-wealth/

[@ironmen808]

What’s the minimum? Can you transfer IRA to dynasty trust

[@steveking8548]

No transfer on the IRA because a transfer makes it all taxable income

[@CunninghamLegal]

Dynasty Trusts typically have $500K or more in assets. An IRA Legacy Trust can be drafted as a Dynasty Trust. Please note that leaving an IRA to a Dynasty Trust without having very specific language in the Dynasty Trust addressing the tax issues associated with an IRA going to a Trust can have a sub optimal outcome.

[@tbnewhomes]

Thank you so much! Can someone hire your company if they live in another state?

[@CunninghamLegal]

If you have any California assets, we can likely assist you with your estate planning needs. We also have attorneys licensed in multiple states, so it depends on the state you live in. You can fill out the form on our website or give our office a call: www.cunninghamlegal.com/california-law-offices/contact/

[@Reinheit]

Why a Wyoming Trust is not on the list?

[@CunninghamLegal]

Wyoming is an option. However, Nevada consistently outranks Wyoming among experts. It also happens to be where many former Californians choose to reside. For those reasons, we focused on Nevada in this webinar.

[@DRventura333]

Can you put a Revocable Living Trust inside of the Dynasty Trust? Meaning the Dynasty Trust would over arch the RLT? Nice information, never heard of a Dynasty trust.

[@CunninghamLegal]

A Dynasty Trust and a Revocable Living Trust (RLT) are typically used for different estate planning purposes, and they generally aren't used in the way you're suggesting. If you move assets from a Revocable Living Trust to a Dynasty Trust, you lose the ability to change or take back those assets, which is a key feature of the Revocable Living Trust.. A more common approach is to use an RLT during one's lifetime and then transfer the assets to a Dynasty Trust upon death for tax-efficient, multi-generational wealth management. If you'd like to set either of these up or look into other strategies, give our office a call: www.cunninghamlegal.com/

[@DRventura333]

@@CunninghamLegal Thank you for the clarification.

[@wompol7117]

my problem is i have 12 kids and 2 gks

[@CunninghamLegal]

With 12 kids and 2 grandkids, it's really important to have a plan for your assets when you're no longer around, so you can make sure it goes to the right people without any big problems, fights, or several months of court proceedings in Probate. Without a plan, the rules the government has might decide for you, and it might not be what you want. You can contact us so we can help you plan: www.cunninghamlegal.com/california-law-offices/contact/

[@nightly522]

This is a fantastic video. Thank you for sharing!

[@CunninghamLegal]

Thank you! We appreciate you leaving a comment.

[@Lycogol]

If Bitcoin survives government’s intervention it will reduce the need for some of this.

[@CunninghamLegal]

The Internal Revenue Service (IRS) classifies Bitcoin as property for tax purposes. This includes both income, capital gains and estate tax purposes. Bitcoin transactions are treated similarly to transactions involving other forms of property. Think of stocks or real estate. When Bitcoin is sold or exchanged, it is subject to capital gains tax. If it is used as a currency in exchange for something (buying a watch for example) the IRS views that as a “sale” and the sale of the Bitcoin in exchange for the watch is subject to capital gains tax.

[@Lycogol]

@@CunninghamLegal yes. My observation is that most people have to risk their savings in uncertain investments or watch it disappear due to inflation. Bitcoin allows one to save in terms of value. Some of the typical dispositions of estates will be wrecked by hyperinflation.