The primary goal of estate planning is to determine what will happen to your estate assets upon your death. While this is certainly an essential and important goal, you may wish to do even more. If, for example, you are passing down a substantial estate and/or a family business, you may wish to continue influencing financial decisions for years to come. To do this, you need a dynasty plan.
Imagine, for example, that you pass down the family business to your children. Not long after your death, the new owners of the business are faced with a difficult decision that will significantly impact the future of the business. What should they do? You are no longer here to provide them with guidance; however, if you created a dynasty plan before your death then your children should be able to find the needed guidance in that plan.
Creating a dynasty trust is one tool that is often used to accomplish this purpose. Along with the ability to create terms that can help guide the beneficiaries for years to come, you may also want to create a “statement of wishes and values” or something similar. In this, you can express to the beneficiaries what you feel is important to remember when making financial and/or business decisions. Should the company expand or stay small? Should the company merge with another company or remain independent? Do you value the employees over profits? These are the kind of questions that you can answer when you create a dynasty plan.
- It Can Be Scary to Die Without an Estate Plan…the HORRORS of Intestacy - December 23, 2021
- Neither Age Nor Health Determines Whether You Need an Estate Plan - December 21, 2021
- The Role of the Estate Planning Attorney - December 8, 2021