What is a Dynasty Trust and how does it work?

Many of my clients tell me they do not want to give their child a sizeble inheritance, only to have it disappear in a bad divorce or bad business deal.  They ask if and how they can protect their chilren’s inheritance after it is given. After much study and discussion with others nationally, I feel the best way is not to give them the inheritance outright, but instead put it in an irrevocable Dynasty Trust, or Inheritance Trust.  The trustee of this trust is free to give whatever the beneficiary needs or wants from his inheritance but it is not available to ex-spouses or creditors since it is protected by the trust.  This also avoids inheritance taxes as long as possible.