Westchester Dynasty Trusts Attorney
For families who wish to preserve and protect their wealth across multiple generations, a Dynasty Trust is one of the most powerful estate planning tools available. Designed to outlast individual lifetimes, these long-term trusts allow assets to grow and be distributed according to your wishes—without being reduced by estate taxes, creditors, or family conflict. At Cavallo & Cavallo, we help high-net-worth clients in Westchester create Dynasty Trusts that secure their legacy far into the future.
What Is a Dynasty Trust?
A Dynasty Trust is a long-term, irrevocable trust that allows assets to pass from generation to generation without being subject to estate, gift, or generation-skipping transfer (GST) taxes at each generational level. While you can limit the trust to your children or grandchildren, a Dynasty Trust is specifically designed to last for as long as legally possible—often hundreds of years in certain jurisdictions.
Key features include:
- Protection from estate taxes over multiple generations
- Asset protection from lawsuits, creditors, and divorce
- Structured and delayed distributions to prevent mismanagement
- Flexibility through trust protectors or powers of appointment
- Continued control over how wealth is used, invested, and transferred
In New York, Dynasty Trusts can be crafted to extend for multiple generations within the state’s legal framework.
Why Use a Dynasty Trust?
Dynasty Trusts are especially beneficial for families with significant or growing assets. These trusts offer:
- Tax efficiency – Assets placed in the trust are removed from your estate and can grow tax-free across generations.
- Wealth preservation – Keeps family wealth within bloodlines or according to your chosen structure.
- Creditor protection – Beneficiaries’ inheritance is protected from creditors, ex-spouses, or poor financial decisions.
- Control and oversight – You decide when, how, and why beneficiaries receive funds—ensuring responsible stewardship.
We work with Westchester families to design Dynasty Trusts that reflect their values, goals, and long-term financial vision.
Assets Typically Held in a Dynasty Trust
A variety of assets can be transferred into a Dynasty Trust, including:
- Investment portfolios
- Closely held business interests
- Real estate and rental properties
- Life insurance proceeds (especially through an Irrevocable Life Insurance Trust)
- Cash or income-producing assets
Proper asset selection and valuation are essential. We help structure and fund your trust to optimize long-term growth and tax efficiency.
Key Components of a Dynasty Trust
Each Dynasty Trust is tailored to the family’s needs, but common components include:
- Trustee – Manages and distributes trust assets; may be a trusted individual or a professional trustee.
- Beneficiaries – Typically your children, grandchildren, and future generations.
- Distribution terms – May be based on age, life milestones, or other conditions.
- Spendthrift provisions – Protect trust assets from misuse, lawsuits, or claims.
- Trust protector – A neutral party with authority to make limited changes to the trust (such as replacing a trustee).
- Powers of appointment – May allow beneficiaries to redirect trust benefits in limited ways.
We craft each trust with precision to meet your family’s current and future needs.
Dynasty Trusts and Tax Planning
One of the greatest advantages of a Dynasty Trust is its ability to minimize taxation through strategic use of lifetime gift and GST tax exemptions. Once assets are placed in the trust, they are excluded from future estate tax calculations.
Benefits include:
- Locking in current federal estate and GST exemptions
- Reducing or avoiding estate tax at each generational level
- Allowing assets to grow without repeated taxation
- Avoiding probate and public disclosure of estate details
With exemptions potentially changing in future tax laws, early planning is critical for maximizing tax efficiency.
Dynasty Trusts vs. Traditional Trusts
| Feature | Dynasty Trust | Traditional Trust |
|---|---|---|
| Duration | Multi-generational (often indefinite) | Typically ends after 1–2 generations |
| Estate tax protection | Avoids estate tax across generations | May be subject to estate tax at each level |
| Asset protection | Stronger, long-term protections | Varies based on trust terms |
| Flexibility | Built-in mechanisms to adapt over time | Often more limited in duration |
| Ideal for | High net worth, legacy-focused families | Individuals with simpler estate goals |
We help you compare options and decide whether a Dynasty Trust fits your estate plan.
Using Life Insurance With a Dynasty Trust
A popular strategy involves using life insurance to fund a Dynasty Trust through an Irrevocable Life Insurance Trust (ILIT). When structured properly:
- The policy’s death benefit passes to the trust tax-free
- The funds remain outside your estate and are protected from taxes
- Future distributions to heirs are made according to your terms
This method allows large sums to pass efficiently to future generations with minimal tax impact.
Frequently Asked Questions About Dynasty Trusts
Can I change a Dynasty Trust after it’s created?
Because it’s irrevocable, you cannot modify it directly—but some flexibility can be built in using a trust protector or limited powers of appointment.
Will my heirs have access to the funds?
Yes, based on the distribution rules you set. You can structure the trust to provide for education, health, housing, or other needs.
Are there annual costs to maintain the trust?
There may be trustee fees, accounting, and legal costs, especially if using a corporate trustee. These are usually minimal compared to the benefits.
Do I lose control of the assets?
You give up legal ownership, but you retain control over how the assets are managed and distributed through the terms you set in the trust.
Is a Dynasty Trust only for extremely wealthy families?
Not necessarily. Anyone seeking long-term asset protection and tax planning can benefit from a Dynasty Trust—especially if you anticipate future appreciation of assets.
Serving Throughout Westchester, NY
- Scarsdale
- Bronxville
- Larchmont
- Rye
- Chappaqua
- Pelham
- Armonk
- Mamaroneck
- Dobbs Ferry
- Tarrytown
How Cavallo & Cavallo Can Help
Cavallo & Cavallo provides strategic estate planning for families in Westchester who want to preserve their wealth and values across generations. We combine in-depth legal knowledge with a personalized approach to create Dynasty Trusts that are flexible, protective, and tax-smart.
Our services include:
- Designing and drafting Dynasty Trusts
- Coordinating with financial and tax advisors
- Funding the trust with appropriate assets
- Advising trustees and beneficiaries
- Reviewing and updating estate plans as needed
We ensure your family legacy is structured to stand the test of time.
Speak With a Westchester Dynasty Trust Attorney
If you want to build a legacy that lasts for generations, a Dynasty Trust may be the right solution. Contact Cavallo & Cavallo today to speak with a Westchester Dynasty Trust attorney and begin crafting a plan that secures your family’s future for decades to come.
