A lasting framework for the generations who follow.
An irrevocable or dynasty trust can provide a lasting framework for the wealth you leave to children and grandchildren. Its terms can reflect your priorities, guide future distributions, and, with appropriate planning, reduce transfer taxes and offer protection against certain creditor claims.
Benefits depend on trust terms, applicable law, tax planning, and administration. These trusts involve giving up important rights over transferred assets.
The irrevocable trusts families use most
- Irrevocable life insurance trusts (ILITs)
- Dynasty and generation-skipping trusts
- Gifting trusts for children
An ILIT keeps insurance proceeds out of your estate
A properly structured life insurance trust can keep policy proceeds outside your taxable estate and provide resources for your beneficiaries. That liquidity can help a family address estate expenses while preserving flexibility over the sale of a home, business, or investment assets. Ownership arrangements, retained rights, premium gifts, and the timing of policy transfers affect the tax treatment.
Trusts that guide what children inherit
Irrevocable and dynasty trusts can hold assets for children and grandchildren on terms you set. With appropriate design, they can offer protection against certain creditor claims; no structure protects against every claim or divorce. Estate-tax exclusion and generation-skipping transfer tax exemption are separate requirements.
Planning that looks ahead a generation
- Families planning for grandchildren
- Owners of large life insurance policies
- People whose estate may exceed the federal estate tax exemption
See how it works, step by step
- How a life insurance trust works: an illustrated example A hypothetical comparison showing how the ownership of a $10 million policy can affect estate taxes, with its assumptions.
- How a dynasty trust works: an illustrated example A hypothetical comparison showing how a dynasty trust may preserve more for later generations, with its assumptions.
“Cynthia took the time to get to know us and understand our plans and wishes when creating our estate… I would highly recommend Cynthia Lee to anyone in need of estate and trust planning because I know Cynthia is extremely knowledgeable, very smart, professional, efficient, and ethical.”
Testimonials describe individual experiences. Results depend on the facts and law applicable to each matter and will differ when those facts differ.
Can I change an irrevocable trust later?
Generally not on your own. In some cases the court can modify an irrevocable trust that no longer works for the family. See Trust modification petitions.
Do I still need a living trust?
Yes. An irrevocable trust handles specific assets. Your living trust, will and powers of attorney remain the foundation of your plan.
Plan for the generations after you.
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