Dynasty Trust Agreement Template

What Is the Dynasty Trust Agreement?

A dynasty trust agreement creates an irrevocable trust designed to last for multiple generations or in perpetuity, depending on your state's laws. Unlike traditional trusts that distribute assets at each generation, a dynasty trust holds wealth indefinitely while providing income and principal distributions to descendants based on their needs.

This trust leverages your generation-skipping transfer tax exemption to shield assets from federal estate taxes at every generational transfer. For families with substantial wealth, this structure can save millions in transfer taxes while providing creditor protection, divorce protection, and professional asset management for descendants who may not be financially sophisticated.

 

 

Is This Dynasty Trust Agreement Right for You?

You need this agreement if you're:

• Planning to transfer significant wealth to multiple generations
• Maximizing use of your GST tax exemption ($13M+ per person)
• Protecting family assets from creditors and divorce claims
• Establishing professional management for long-term wealth preservation
• Creating a perpetual trust in states that permit dynasty trusts
• Preventing estate tax erosion across three or more generations

You definitely need this agreement if:

• Your estate exceeds federal exemption amounts and will face estate taxes
• You want assets protected from beneficiaries' creditors and lawsuits
• You're concerned about descendants' financial maturity or spending habits
• You own rapidly appreciating assets like businesses or commercial real estate
• You want professional trustees managing wealth for future generations

 

 

Why Thousands Trust Legal GPS Templates

Save Money: Attorney fees for dynasty trust planning typically run $8,000 to $15,000. Our template costs $35.

Save Time: Download instantly and complete in hours rather than waiting weeks for attorney drafting and revisions.

Look Professional: Created by licensed attorneys with traditional legal language that financial institutions and courts recognize.

Keeps You Out of Court: Comprehensive provisions including spendthrift clauses, trustee removal powers, trust protector authorities, and conflict resolution mechanisms prevent family disputes and creditor attacks.

 

 

 

Get Protected in 3 Simple Steps

Step 1: Secure Checkout
Complete your purchase through our encrypted payment system. Receive instant access to your template.

Step 2: Instant Download
Download your Dynasty Trust Agreement template in Microsoft Word format. Fully editable and reusable.

Step 3: Fill In the Highlighted Fields
Follow the bracketed guidance to complete trust terms, select distribution options, name trustees and trust protectors, and specify your perpetuity period. Have the agreement notarized, transfer assets to the trustee, and file Form 709 to allocate your GST exemption.

 

Frequently Asked Questions

Can I use this template multiple times?

Yes. After purchasing, you can use this template to create multiple dynasty trusts for different asset classes, children, or purposes. Many families create separate dynasty trusts for different branches of the family.

Is this contract legally binding?

Yes. This template contains all essential provisions for a valid dynasty trust agreement under state law. When properly completed, executed, funded, and combined with proper GST tax exemption allocation through Form 709, it creates a legally binding irrevocable trust.

Can this trust really last forever?

It depends on your state's laws. States like Delaware, South Dakota, Alaska, and Nevada have abolished the rule against perpetuities and permit truly perpetual trusts. Other states allow trusts to last for 360, 500, or 1,000 years. The template includes a situs migration provision allowing you to move the trust to a more favorable jurisdiction if needed.

What's the difference between a dynasty trust and a revocable living trust?

A revocable living trust provides probate avoidance and incapacity planning but offers no tax benefits or asset protection because you retain control. A dynasty trust is irrevocable, removes assets from your estate permanently, provides generation-skipping transfer tax exemption, and protects assets from beneficiaries' creditors. You give up control to gain multi-generational tax savings and asset protection.

How much can I contribute to a dynasty trust?

You can contribute any amount, but contributions above your available generation-skipping transfer tax exemption (currently over $13 million per person) will incur GST tax at 40%. Most people contribute up to their exemption amount to maximize tax-free growth across generations. Married couples can combine their exemptions to shelter over $26 million.

What's a trust protector and do I need one?

A trust protector is an independent third party with power to modify trust provisions, remove trustees, change trust situs, and adapt the trust to changing laws and circumstances. For dynasty trusts lasting decades or centuries, a trust protector is essential to prevent the trust from becoming obsolete or problematic as laws and family circumstances change.

Can I change the trust after I create it?

No. Dynasty trusts must be irrevocable to achieve estate tax exclusion and GST tax benefits. Once you transfer assets to the trust, you cannot amend the trust terms or reclaim the property. However, the trust protector can modify administrative and tax provisions, and beneficiaries hold limited powers of appointment to redirect their shares among descendants.

What happens if a beneficiary has creditor problems or gets divorced?

The spendthrift provisions protect trust assets from beneficiaries' creditors, lawsuits, and divorce claims. Because beneficiaries have no right to demand distributions (the trustee has discretion) and cannot transfer their interests, creditors cannot reach trust property. The trustee can delay distributions or pay expenses directly if a beneficiary faces financial threats.