What is a perpetual trust?
A perpetual trust is a type of trust that never expires and can continue indefinitely over generations. It is frequently used as an estate planning tool to protect and preserve family wealth. In West Virginia, a perpetual trust is regulated by the state’s inheritance laws. These laws set out how assets can be passed down and managed in the trust and outline the rights and duties of trustees. Perpetual trusts are irrevocable, meaning they cannot be altered or cancelled. They are different from other types of trusts, which can be revoked or altered at a later date. The trust’s beneficiaries may be able to receive the trust’s income during their lifetimes. When the beneficiary passes away, the assets in the trust will pass on to their designated heirs. All of this is governed by the trust’s terms and conditions, which are written in the document establishing the trust. The trusts are often used to provide for future generations, as the money or assets in the trust can remain intact for many years to come. Perpetual trusts are used to protect assets from creditors, prevent the misuse of funds, and avoid certain taxes. This makes them popular among wealthy families. Perpetual trusts must be carefully drafted and managed due to the complexity of legal considerations involved in creating and managing them in West Virginia.
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