Dynasty Trust

A dynasty trust is a long-duration irrevocable trust designed to hold and grow family wealth across many generations while minimizing exposure to federal estate, gift, and generation-skipping transfer (GST) taxes. By keeping assets inside the trust rather than passing them outright to each new generation, a properly structured dynasty trust can shelter appreciation from transfer taxes for as long as state law allows.

In the context of family office software, dynasty trusts are tracked as standalone entities with their own beneficiaries, trustees, investment policy, and reporting requirements. Platforms typically capture distributions, allocations among branches of the family, GST exemption usage, and trust accounting needed for fiduciary statements. Dynasty trusts often sit at the center of multi-generational planning, so accurate record-keeping and clear governance are essential for trustees, beneficiaries, and the family's tax and legal advisors.