Most dynasty trusts are now drafted as directed trusts. A directed trust is a trust that removes one or more powers or discretions traditionally held by the trustee and vests that power or discretion in a person who is either a special trustee or not a trustee at all.
Settling an estate of a loved one is a daunting task, as navigating the estate tax rules in the US can be unfamiliar and challenging to anyone, especially when an estate’s assets span multiple countries.
Investment advisors play a critical role in managing the long-term success of dynasty trusts, which often hold a significant portion of a high-net-worth individual’s estate. As more families use directed trusts, investment decision-making is frequently delegated to a trusted advisor rather than the trustee. Understanding this role is key to ensuring alignment with the family’s long-term financial goals and generational wealth planning.
