As a result of recently enacted legislation in the State of Michigan, we have eliminate the rule against perpetuities relative to personal property. Without a rule against perpetuities we can now draft a Dynasty Trust which is a multi-generational trust that has no end date. Under Michigan's previous law, a trust had to be fully distributed within a set period of time (i.e. 90 years). Since we have now abolished the rule against perpetuities relative to personal property, we can create a trust that will last in perpetuity.
If you have an estate that will be subject to Federal Estate Tax, and you want to provide for future generations without incurring a Federal Estate Tax at each generation, a Dynasty Trust should be considered by you and your estate advisor.
