A dynasty trust is a powerful estate planning technique that can preserve your wealth for generations to come. It is often used to safeguard assets from divorce, lawsuits, malpractice claims, estate tax, generation skipping transfer tax (GST), and even state income tax. These trusts are typically formed in a state that has eliminated or modified the common rules that limit the number of years a trust can continue (called the rule against perpetuities in legal jargon). Delaware, Alaska and South Dakota might be the most commonly used states. These trusts can be extraordinarily complex and costly and used by those with huge net worth and estates in sophisticated planning transactions (note sales to defective grantor dynasty trusts; private annuity sales, and more). They can also be used in a much less sophisticated and costly manner by say a physician looking to protect assets (a self settled trust or a DAPT), and more.