The Short Answer
A dynasty trust is an irrevocable trust designed to hold family wealth for the long run, passing it down through children, grandchildren, and further still. Instead of handing each generation a lump sum that is exposed the moment it lands, the trust lets them benefit from the wealth while keeping it protected and intact. Florida is one of the best states in the country for this, because Florida law lets a trust last up to 1,000 years.
Why Florida, Even if You Live Somewhere Else
Many states still limit how long a trust can last, often to about 90 years, under an old legal rule called the rule against perpetuities. Massachusetts is one example. That limit forces the wealth out of protection within a generation or two. Florida took a different path and allows a trust to run for as long as 1,000 years, so a true multi-generation legacy is actually possible here. A family living in a high-tax or short-perpetuity state can use Florida law by setting up the trust with a Florida trustee, and we routinely work alongside the family’s home-state attorney to do exactly that.
What a Dynasty Trust Protects Against
- Transfer tax at every generation. Using your federal generation-skipping (GST) exemption, the assets and their growth pass down the family line without being taxed again at each death.
- Your children’s divorces. Because the wealth stays in the trust, it is generally not marital property a divorcing spouse can claim.
- Creditors and lawsuits. Assets held in the trust are largely beyond the reach of a beneficiary’s creditors, generation after generation.
- Spending it all at once. You set the rules so the wealth supports each generation rather than being drained by one.
Thinking in generations, not just the next one?
Book a free 30-minute consult. We will tell you whether a Florida dynasty trust fits your family and how to use your exemptions, working with your home-state counsel where needed.
Book your free consultThe Honest Trade-Offs
A dynasty trust is irrevocable, so you give up direct ownership of what you put in, which is what makes the protection and tax savings work. It is a sophisticated tool that earns its keep for families with meaningful wealth and a genuine multi-generation goal; for a simpler estate, a revocable trust or a lady bird deed is the better fit. Florida’s directed-trust and decanting laws keep even an irrevocable dynasty trust adaptable as the years pass. We quote the work at the consult.
Frequently Asked Questions
What Is a Dynasty Trust?
A dynasty trust is an irrevocable trust built to last for many generations, holding and protecting family wealth for your children, grandchildren, and beyond instead of paying it out and exposing it. Each generation can benefit from the trust (income, a home to live in, support) without owning the assets outright, which keeps the wealth safe from their creditors, divorces, lawsuits, and estate tax as it passes down. It is the structure families use to build a lasting legacy rather than a one-generation inheritance.
How Long Can a Trust Last in Florida?
Up to 1,000 years for trusts created on or after July 1, 2022 (trusts created between 2001 and mid-2022 can run 360 years). That is one of the longest trust durations in the country. It matters because many states still limit trusts to roughly 90 years under the old rule against perpetuities, which cuts a dynasty short. Florida’s long horizon is a big reason families, including those who live in other states, choose Florida law for a multi-generation trust.
Why Would a Family in Another State Use a Florida Dynasty Trust?
Because their home state often will not allow a trust to last nearly as long. Massachusetts, for example, caps trusts at about 90 years; Florida allows up to 1,000. A family that wants wealth to pass to grandchildren and great-grandchildren needs a state whose law permits it, and with a Florida trustee they can use Florida’s. We frequently build the Florida trust and coordinate with the family’s home-state attorney.
How Does a Dynasty Trust Save Estate Tax Across Generations?
Normally, wealth can be taxed again each time it passes to the next generation. A properly structured dynasty trust uses your federal generation-skipping transfer (GST) tax exemption so the assets, and all their future growth, pass down through the generations without being hit by transfer tax at each death. Lock in the exemption now, and decades of growth can compound inside the trust free of those taxes.
Does a Dynasty Trust Protect Against My Children’s Divorces and Creditors?
Yes, that is one of its biggest draws. Because the assets stay in the trust rather than being handed to each beneficiary outright, they are generally beyond the reach of a beneficiary’s divorcing spouse, creditors, or a lawsuit. Your daughter can benefit from the trust without the assets becoming marital property she could lose in a divorce. The protection continues generation after generation.
Do I Lose Control of the Assets?
A dynasty trust is irrevocable, so you give up direct ownership, that is what makes the protection and tax benefits work. But it is far from rigid: you set the rules up front, choose the trustee, and Florida’s directed-trust and decanting laws allow real flexibility to adapt the trust as the family and the law change over time. You shape how the legacy works; you just do not keep the assets in your own name.
How Much Does a Florida Dynasty Trust Cost?
It is custom planning, quoted at the consult, because the design depends on your assets, your family, and how the GST exemption is used. It is a sophisticated tool for families with meaningful wealth they want to protect for generations, so we only recommend it when it genuinely fits. The 30-minute consult is free, and we will tell you honestly whether a dynasty trust or a simpler plan is right.
Common Situations
The grandparents building a legacy. A couple with substantial wealth wants it to protect their grandchildren and great-grandchildren, not just their children. Florida’s 1,000-year trust term makes that possible, where their home state’s 90-year limit would have ended the protection within two generations.
The out-of-state family. A New York family cannot get a multi-century trust under New York law. With a Florida trustee and a Florida dynasty trust, they can, and we coordinate with their New York attorney on the rest of the plan.
The business-owning family. Parents want a closely-held business to stay in the family for generations. A dynasty trust, often paired with a directed trust so the family keeps investment control, holds the business and protects it from each heir’s personal risks.
Sources of Law
- Fla. Stat. §689.225: Florida’s rule against perpetuities, permitting a trust term up to 1,000 years for trusts created on or after July 1, 2022 (360 years for trusts created 2001 to mid-2022). flsenate.gov (retrieved 2026-06-07)
- Federal generation-skipping transfer (GST) tax and exemption: IRC §§2601, 2631 (2026 exemption $15,000,000 per person, indexed).
- Florida Trust Code, Fla. Stat. ch. 736. Florida has no state income or estate tax.
Updated on June 10, 2026. Reviewed by Kevin D. Klagge, Esq., Fla. Bar No. 99502. General information about Florida and federal law, not legal or tax advice, and no attorney-client relationship is created. Tax outcomes depend on your facts and on federal law that may change; nothing here is a guarantee. Do not send confidential information until we have agreed to represent you.