The Often Unexpected Consequences of The Creation of a Perpetual Trust

Many U.S. attorneys and financial planners continue to recommend that their clients create perpetual trusts, frequently referred to as “dynasty trusts.” While there are a number of reasons that might propel an individual to create such a trust, the primary motivating factor has been to avoid the federal generation-skipping transfer tax on the assets of trusts for later family generations. Spurred by this method of tax avoidance, a cottage industry in perpetual trusts has come into being. It’s