Dynasty Trust Attorney Chandler, Arizona

A Dynasty Trust, also known as a Beneficiary Asset Protection Trust (BAPT), is an invaluable tool for clients who want to preserve their inheritance for their children, loved ones, and heirs. This type of trust allows you to pass your assets to future generations while maintaining certain protections. Thanks to recent legal changes, Dynasty Trusts can last up to 500 years in Arizona, providing extensive planning options.

Benefits of a Dynasty Trust

Incorporating the BAPT technique into a Revocable Living Trust protects your beneficiaries from liabilities such as creditors, lawsuits, and divorce. The BAPT becomes active when it’s time to distribute your assets after you pass away. Designed to avoid probate court, the BAPT ensures your Successor Trustee only needs to pay the estate’s final expenses before distributing your assets. At this point, the BAPT technique directs your Successor Trustee to create Irrevocable Beneficiary Asset Protection Trusts for your heirs. These Irrevocable Trusts will protect your beneficiaries’ inheritance because the inheritance is owned by the trust, not by the beneficiaries directly.

Protection from Liabilities

The inherited BAPT or Dynasty Trust provides your beneficiaries with liability protection from creditors, lawsuits, and divorce. For instance, if an heir divorces, their spouse cannot force them to liquidate the trust or split the assets. If an heir is sued or owes money to creditors, the trust assets remain protected and cannot be used to settle debts. Additionally, a well-designed BAPT can ensure that your children don’t have to pay over trust assets if they end up on Medicaid or in long-term care.

Flexible Access Rules

We can customize the rules governing how beneficiaries access the BAPT. Every family’s needs differ; some clients prefer the inheritance to remain in trust and only be accessible for emergencies, while others want to give beneficiaries full access to trust assets. This is a personal choice that should be discussed with an attorney. Given that this trust can last 500 years, you can also decide how the assets are passed on when your initial heir dies. Options include replacing a deceased beneficiary with their children or providing a Power of Appointment to allow the beneficiary to decide where the assets go. Discussing these options with an attorney is crucial to ensure your trust aligns with your wishes.

A Dynasty Trust is an excellent choice for those seeking high-level protection from future creditors, lawsuits, or divorces for their beneficiaries. To learn more and discuss your options, schedule a free consultation with one of our experienced attorneys by clicking the button below.