Would you like to leave money to descendants as distant from you as you are from the Pilgrims who landed at Plymouth Rock? It’s possible, if you set up a “Dynasty Trust.” The Obama administration, however, proposed restrictions on such trusts in its recently released 2012 budget.
But experts agree that this proposal is unlikely to pass this year, and perhaps ever. Dynasty trusts can be used by the wealthy to put $5 million or more in assets beyond the reach of the estate tax for hundreds of years. They are especially attractive to many now that the estate tax is the most generous it has been in decades, with a $5 million per individual exemption and a 35% top rate – terms that will expire at the end of 2012.
Dynasty Trust Can Delay Estate Taxes For Decades – The Tax Blog – SmartMoney