Dynasty Trust

Dynasty Trust Law

Protect Property for Generations to Come

Utah Dynasty Trust Protects Assets For Future Generations

Sometimes clients desire to save specific property for future generations rather than simply turning over ownership to their descendants at death. We see this most often in cabins or other recreational properties. A cabin trust (also called a Utah Dynasty Trust) retains ownership of the property and holds it for use by future generations. Thus, it is better to think of the property less like an inheritance for your children and more like a family stewardship to them to be passed on to their children and through the generations. The Cabin trust spells out all of the rules and regulations and even plans for unforeseen contingencies so that the beneficiaries are not burdened by that should be a benefit to them. 

When to Use a Cabin Trust?

Every family is different and more often than not siblings have differences of opinion. If you have a recreational property such as a cabin you would like to leave to your kids but do not want sold, the cabin trust is probably your best option. Sometimes clients ask “why not just let the kids work it out?” The answer is that the end result of that choice is the sale of the property and potential unnecessary conflict.

Even if all of the kids agree that they want to keep a cabin in the family, absent some sort of governing agreement things can break down quickly when repairs come up, taxes need to be paid, clean-up takes place, one of the kids hits financial troubles, illness or distance prevent equal use, and just about anything else you can think of. Furthermore, while the 1st generation of your descendants may agree on how to use the property, consider the 2nd and 3rd generations when the number of users of the property potentially skyrockets. A properly drafted Utah Cabin Trust will address all of these concerns.

How Does A Cabin Trust Function?

Typically a Cabin Trust is given to beneficiaries as family groups based on the number of children you leave the property to. You assign the initial trustees of the trust who will manage it following your death. The trustees must follow the terms of the trust as you set them out. The family groups can vote on management of the trust and even limited changes to the bylaws as circumstances require. Each family group has equal use the property and are responsible for repairs and taxes in equal shares. This way the more descendants you have, the less the burden of upkeep. If a family group fails to meet the costs, they may lose their rights to the cabin property.

In the event that the property must be sold, a vote of the family members is required. You as the trustmaker can decide the vote percentage required to sell.  Typically a right of first refusal is given to those beneficiaries who did not agree to sell so that they have the chance to purchase the property before a sale to a third party.

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