|
I. Introduction: What Is A Dynasty Trust? What Makes It
Possible?
A. Avoiding Federal Tax With Successive Life Estates
B. The Generation-Skipping Transfer Tax Limits
Successive Tax-Free Transfers
C. "Loopholes" In The Generation-Skipping Transfer Tax
D. The Dynasty Trust Takes Advantage Of These Planning
Opportunities
II. Dynasty Trusts And The Generation-Skipping Transfer Tax
A. Understanding The Generation-Skipping Transfer Tax
B. GST Tax Exemptions And Funding Of The Dynasty Trust
C. Using Leverage To Accelerate The Dynasty Trust
Advantage
III. Dynasty Trusts And The Rules Against Perpetuities — How Long Can The
Dynasty Last?
A. Understanding The Rule Against Perpetuities
B. How Long May The Dynasty Last?
C. Prohibiting Restraints On Alienation
D. Beware The "Dead Hand"
E. Statement And Explanation Of The Rule
F. Significant Differences In State Laws
G. No Federal Exceptions To The Rule
H. Attractiveness Of The Dynasty Trust
IV. How The Dynasty Trust Is Designed And Structured
A. Summary Of Advantages
B. Dynasty Trust Design Considerations
C. Inter Vivos or Testamentary
D. Trust Beneficiary Considerations
E. The Delaware Tax Trap
F. Trustees And Trust Powers
G. Funding And Uses Of The Dynasty Trust
V. Termination Of A Dynasty Trust
A. Must The Trust Ever End?
B. What To Do With "Pooled" vs. Separate Share Trusts
C. Failure Of The Beneficial Line
VI. Selecting The Jurisdiction For A Dynasty Trust
A. Freedom Of Choice Of Jurisdiction
B. Watch Out For State Income Taxes
C. Maintain Flexibility
VII. Conclusions
APPENDIX
FORM: THE FAMILY DYNASTY TRUST
|
1
1
2
2
3
6
6
10
15
19
19
19
19
20
20
22
24
26
27
27
27
27
28
33
35
42
49
49
49
50
50
50
51
52
52
|