Would it be possible to set up a staged dynasty trust where you can leave money to your children, your grandchildren and future generations down the line where the money is to be split equally amongst living members that are adults?
I was thinking about it today. In today's money your kids and grandkids can benefit from the majority of your assets, but if legal, you could also benefit future generations with smaller amounts of money with longer compounding time-frame.
For example say you left 500k to your kids total but also split $1k for future generations and specified the money is to be held in say a total market fund for the duration until disbursement.
If you did that for the following 5 generations (assuming a generation is roughly 30 years) by the time the 5th generation received their initial $1,000 dollar investment, 1800 months would have passed.
If that initial $1,000 averaged 6.5% over the 150 year periods between generations it would be over $17,000,000 which could be divided equally amongst all adults of that generation.
Is it legal? I'd imagine that's quite a complicated investment to set up, but is it possible?
Submitted August 13, 2021 at 11:30AM by Rthen https://ift.tt/3se326s
