Dynasty Trusts
Nevada statutes afford substantial dynasty provisions that extend legacy and tax planning well beyond the lifetime of a grantor — a trust that can benefit generations to come.
What is a Dynasty Trust?
A Dynasty Trust is an irrevocable trust that can protect your legacy assets for multiple generations to follow. When properly drafted, it becomes a powerful tax planning solution, shielding assets transferred to the trust from generation-skipping transfer tax, estate tax, and gift tax as wealth passes from one generation to the next. Nevada statutes allow trust assets to remain within a Dynasty structure for up to 365 years.
Durable asset protection
The Nevada Dynasty Trust codifies what many estate-planning experts regard as the most secure asset protection structure available in the United States. Nevada is one of only two states that recognizes no exception creditors. Nevada's asset protection statutes have withstood repeated challenges before the Supreme Court of Nevada, setting and confirming legal precedent — and offering you a dependable, lasting planning structure.
Get ahead of your estate tax gift liabilities now so your beneficiaries won't have to
Estate tax
Nevada is one of a handful of states that do not have an estate tax statute.
Gift tax
Nevada is one of a handful of states that do not have a gift or inheritance tax statute. While Federal gift-tax parameters will still apply — assets gifted to a Dynasty Trust can apply and use a grantor's lifetime gift-tax exemption. Once these assets are gifted to a Nevada Trust, the assets are no longer subject to estate taxation as your trust legacy becomes their owner and relieves many tax planning anxieties that would normally be facing your beneficiaries.
Generation-skipping tax
When your assets are placed in a Nevada Dynasty Trust, the trust becomes the singular owner of these assets for the Dynasty term. Most Dynasty Trust assets are relieved of any generation-skipping tax.
Case study
Nevada Dynasty Trust
While fictitious, the application below is based on a real case.
Peter owns a commercial construction company that has grown substantially over the last decade. As his net worth approaches his lifetime gift-tax exemption, he is increasingly concerned about future estate-tax liability and creditor exposure to the business he has built.
Peter's financial advisor recommends a Nevada Asset Protection Trust with Dynasty provisions. The trust takes ownership of the construction company while Peter retains operational control, locking in his lifetime exemption and shielding the business from future creditor claims, divorce, and litigation.
Because the assets sit inside a Nevada Dynasty Trust, they are removed from Peter's taxable estate, are no longer subject to generation-skipping tax during the dynasty term, and benefit from Nevada's tier-one asset-protection statutes for the life of the trust.
Peter passes away — what happens next?
At age 65, Peter passes away unexpectedly from a heart attack. Per the trust's terms, it converts to a Dynasty Trust with his oldest son as primary beneficiary.
Peter's son inherits decision-making authority over the construction company. If he chooses not to continue operating the business, the corporate trustee can sell it on the trust's behalf — and the resulting cash proceeds remain inside the Dynasty structure, retaining Nevada's asset protection and tax-favored treatment for generations to come.
Related services
Other ways we serve families like yours.
Nevada Asset Protection Trust
Protect your estate from non-exception creditors, including spousal divorces, in one of the shortest asset protection time periods of just 24 months. Corporate income tax? State income tax? Personal income tax? None of these will apply to your Nevada trust.
Incomplete Non-Grantor Trusts (NINGs)
Move income-generating assets out of high-tax states grantor status while retaining family flexibility, leveraging Nevada's tax-free environment.
QSBS Trusts & QSBS Stacking
Eligible founders and investors holding Qualified Small Business Stock can exclude millions in capital gains under IRC Section 1202. A Nevada QSBS Trust — and the multi-trust strategy known as QSBS Stacking — puts structure behind that opportunity well before a liquidity event.
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The journey to your legacy was unique. Let Crawford Trust help develop and administer a Trust that will protect it — for centuries to come. Contact us for a complimentary consultation.