You are here:

Trusts & Estates Law/Is there a time limit to how long a trust can last?


say  someone who is worth 100 billion wants to give their children 1billion to spend in their lifetime and then give 1 billion(adjusts to inflation or multiplied by 3.3 every 40 years so 40 years later 1bn today would be worth 3.3 billion assuming 3% year inflation rate)

to their grandkids to great grandkids to great great grandkids and  so on for generations can they do this and can they set it up so that the remaining 99 billion trust is constantly invested in gov bonds to offset inflation?

The answers that you are getting on "Quora" for this same question are reasonably credible, so I'm not going to waste time parroting that information. The bigger problem with creating a trust to do what you propose is in having to create a set of rules today for the management of the trust that will still be relevant and profitable going forward.

Trusts become stagnant, the trust document itself sets specific protocols for all aspects of activity, including investments. There has never been an investment strategy that continuously grows an investment over the long run. Every previously successful investment strategy will fail miserably under a new market dynamic, and we all know the markets are hyper dynamic.

Nor did you address the cost of management. You have to hire an independent third party to manage the fund. Those people's agenda is not the long term growth and success of the fund. Their sole agenda is their own growth and success, that all comes out of their clients funds. Trust funds get wiped out with fees that just seem to pop up.  

Trusts & Estates Law

All Answers

Answers by Expert:

Ask Experts


Richard Fritzler


Comparing the advantages and requirements of traditional estate practices, and unconventional methods? Are Trusts a viable asset protection vehicle? Is there an alternative to buying life insurance to reduce the impact of the estate tax. Is the elimination of the estate tax during the next decade good for everyone? I can review the benefits and misinformation that exists.


I have been in the business of assisting business owners in reducing their taxes and liability for over 17 years. We specialize in developing plans that eliminate the estate tax, not find a way to prepay it. Most small businesses do not survive the death of the principal. We want small businesses to not only survive, but flourish.

National Small Business Owners Association.
Nevada Association of Listed Resident Agents.
Citizens Legal Association

Contributing author to "The Corporate Standard Newsletter".

©2016 All rights reserved.