Understanding Dynasty Trusts in Maryland Estate Planning

 Posted on August 25, 2025 in Estate Planning

Maryland families with growing wealth often want a plan that lasts beyond their children and supports future generations with clear rules. With state estate and inheritance taxes, smart choices about titles, beneficiaries, and lifetime gifts can save money, protect privacy, and keep a family business or vacation home on track. Dynasty trusts often fit perfectly into Maryland estate plans for these reasons. To learn more, you should speak with a knowledgeable Chevy Chase, MD estate planning attorney.

What Is a Dynasty Trust?

A dynasty trust is a long-term trust that holds family wealth for multiple generations. They are usually irrevocable, which means you give up ownership and control of the assets you put in it. They often include assets like investments, real estate, or businesses. You name a trustee to manage them and set clear rules for how and when money is used. With proper spendthrift language, a Maryland dynasty trust can shield a beneficiary’s interest from most creditors and divorces under Md. Code, Estates & Trusts § 14.5-504.

Why Choose a Dynasty Trust for Your Maryland Estate?

A dynasty trust helps your family keep wealth safe, organized, and private for many years. Here is why many Maryland families use one:

• Plan for Maryland taxes: The state has an estate tax and a 10% inheritance tax for some recipients. A dynasty trust can time gifts, direct who receives what, and be paired with life insurance so your family has cash to handle any taxes.

• Protect your heirs: Built-in rules can guard against creditors, divorce claims, and poor spending.

• Set clear payout rules: You choose ages, school goals, or other milestones before larger distributions happen.

• Keep things private: Trusts can help you avoid probate and cut down on public court filings.

• Manage a business or vacation home: The trust can own your business or vacation home and spell out who makes decisions and how family members can use it fairly.

• Pick steady managers: You name a trusted person or a bank to run the trust, and you can appoint backups if needed.

What Is the Difference Between a Dynasty Trust and a Legacy Trust?

People often use the term legacy trust to describe any plan that passes values as well as assets. A dynasty trust is a specific long-term trust that can continue for multiple generations, subject to any rules on trust duration that may apply. A legacy trust might be a simple revocable trust paired with letters to heirs, or a charitable tool like a donor-advised fund or a private foundation. In short, legacy is the goal, but dynasty is one method to reach it.

Schedule a Free Consultation With a Silver Spring, MD Estate Planning Attorney

If you want a clear, tax-smart plan that protects your family for decades, The Eleff Law Group can help. We will listen to your goals, design a workable trust, and coordinate titles and beneficiary forms so nothing falls through the cracks.

If you are looking for representation with proven knowledge, Attorney Susan Eleff brings more than 35 years of estate planning experience to every matter. She has earned Martindale-Hubbell’s highest peer distinction for legal ability and ethics (AV Preeminent) and holds a perfect 10.0 "Superb" rating on Avvo. This is a testament to strong professional recognition and positive client reviews. Call 301-857-1990 today to schedule a free consultation with a Chevy Chase, MD estate planning lawyer and start building a plan that lasts.