Estate plans can experience federal and state estate taxes eating away at the value of an asset, which can be defeating when trying to gift further generations. Dynasty trusts are normally created to avoid the estate and generation skipping transfer tax when assets are being left to grandchildren or great grandchildren. The Rule Against Perpetuities, however, has destroyed the creation of dynasty trusts for many years now. Although, several states have moved toward eliminating that rule, creating 365 and 500 year trusts.
See Ettinger Law Firm, Dynasty Trust Reexamined, NY Estate Planning Attorney Blog, May 21, 2016.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
