Creating a Dynasty Legacy Trust is a powerful way to preserve wealth across generations while protecting assets from taxes, creditors, and probate. Here’s a clear action plan to structure and implement your trust, including the ownership of properties, LLCs, stocks, and crypto.

🔑 Phase 1: Define Your Legacy and Goals

✅ Step 1: Clarify Purpose and Goals

• Wealth Preservation: Avoid estate taxes, protect from lawsuits/divorce.

• Multi-Generational Impact: Set rules for distributions and wealth management.

• Privacy: Keep ownership of assets out of public view.

• Philanthropy (optional): Include charitable giving strategies.

✅ Step 2: Identify Assets to Transfer

List the current and expected assets:

• Real Estate (personal, rental, commercial)

• LLCs (operating or holding companies)

• Stocks and brokerage accounts

• Cryptocurrencies and NFTs

• Cash reserves and future earnings (e.g., royalties, IP)

🏛 Phase 2: Design the Trust Structure

✅ Step 3: Choose the Right Type of Trust

• Dynasty Trust (Irrevocable): Lasts for multiple generations; asset protection.

• Use Grantor Trust status if you want to pay the taxes yourself (maximizes trust growth).

✅ Step 4: Select Jurisdiction

Choose a state with strong Dynasty Trust laws:

• South Dakota (most favorable)

• Nevada

• Alaska

• Delaware
  These states allow long durations (some indefinite), strong privacy laws, and low/no state income tax.

✅ Step 5: Choose Key Roles

• Grantor: You

• Trustee: Choose a professional, institutional, or family member (you can have a protector oversee them)

• Beneficiaries: Children, grandchildren, charities

• Trust Protector: Can replace trustees, fix errors, adjust terms over time

📑 Phase 3: Legal Setup

✅ Step 6: Hire a Trust & Estate Attorney

• Preferably licensed in a dynasty-trust-friendly state.

• Familiar with asset protection and advanced wealth planning.

• Coordinate with your CPA, financial advisor, and business attorney.

✅ Step 7: Draft and Fund the Trust

1. Create the Trust Agreement (core legal document)

2. Establish LLC Holding Companies if needed:

   • Real estate and business assets should be held in LLCs for liability protection

   • The LLCs are then owned by the Trust

3. Retitle Assets into the Trust:

   • Real estate: Transfer deeds

   • LLCs: Update Operating Agreements, ownership shares

   • Brokerage accounts: Use TOD (transfer on death) or direct ownership

   • Crypto: Use multi-sig wallets or hardware wallets. Share private key access with the trustee via legal documentation

✅ Step 8: Include an Investment Policy Statement (IPS)

• Define how assets are to be managed (e.g., real estate income, crypto rebalancing).

• Include instructions for future trustees and protectors.

🧾 Phase 4: Compliance & Maintenance

✅ Step 9: Tax Reporting & Accounting

• Annual Trust Tax Returns (Form 1041 or state equivalent)

• Ensure LLCs are compliant with annual filings

• Track basis and capital gains for inherited assets

• Coordinate with CPA for generation-skipping transfer (GST) tax planning

✅ Step 10: Periodic Reviews

• Update trust terms with major life changes (births, deaths, marriages)

• Review every 1–2 years with your estate attorney

• Audit digital access, wallet security, and beneficiary info

🛡 Phase 5: Asset Protection and Succession

✅ Step 11: Add Layered Protection

• Use LLCs in series for real estate

• Insure all properties and businesses

• Store crypto seed phrases securely and redundantly

• Consider a Private Trust Company to manage complex family trusts

✅ Step 12: Educate Heirs

• Prepare a family legacy statement

• Set expectations for stewardship vs. entitlement

• Consider creating a family bank inside the trust (for funding ventures, education, etc.)

🧭 Timeline Overview (90-Day Initial Setup Plan)

📊 KPIs to Track Annually

• Trust growth rate (assets under management)

• Distribution schedule vs. income earned

• Legal and tax compliance deadlines

• Beneficiary engagement (e.g., education, contributions)

• Asset performance (stocks, real estate, crypto ROI)