By Attorney Lei Jiang, Lei Jiang LLC.
A dynasty trust is built to last for children and grandchildren and beyond — not given outright to each generation. The trust owns the assets, a trustee manages them, and each generation receives support under your rules.
Ordinary inheritance has a leak: money given outright becomes the child’s property — open to divorce, lawsuits, or creditors, and taxed again when the child passes it on. A dynasty trust plugs the leak: the trust, not the child, owns the assets, so a divorcing spouse or creditor cannot easily reach it, and it can pass down without a new tax bill each generation.
Ohio makes this possible: a trust can last for generations if the document opts out of the old perpetuities rule and someone can sell the assets or end it.
In New York, a trust can last until 21 years after the death of a person alive when the trust was created — a lifetime plus 21 years, not forever. Illinois lets a trust opt out of its rule against perpetuities, so a properly drafted trust there can also last for generations. Michigan is mixed: personal property in a trust can last indefinitely, but real estate is still limited.
You stay in control: who benefits and when — support for education, a home or business; limits so a young heir cannot spend it at once; who serves as trustee; and protection if a beneficiary faces divorce or debt.
It is not for everyone. A dynasty trust needs enough wealth to justify running it for decades, and the $15 million lifetime exemption (2026) shapes how much can go in tax-free. For a family with a business, real estate, or a lifetime of savings, it is worth a conversation; for a modest estate, a simple revocable trust does the job.
The question to ask: Do you want your family’s money to support your grandchildren as it supported your children? If so, a dynasty trust is the tool for that.
Questions? Contact us at info@leijianglaw.com or (440) 835-2271, or book a free 15-minute call: https://calendly.com/leijianglaw-info/15-minute-consultation
This article is for general information only and is not legal advice.