The benefits of Wyoming as a trust jurisdiction include:
- Favorable tax laws — Residents are not required to pay state income, capital gains, corporate, estate, or gift taxes. Additionally, Wyoming has some of the lowest tax rates on insurance premiums compared to other U.S. states. These innovative tax benefits extend to income accumulated in an irrevocable trust, even for nonresidents.
- Sound government and skilled judicial system — Wyoming has a fiscally responsible state government along with a state judiciary that has a reputation for being expeditious, effective, and experienced with high-net-worth families and individuals. The Wyoming Legislature has a long-standing track record of friendliness to businesses and trusts, and opposing regulatory requirements.
- Strong privacy protections — Wyoming has strong privacy laws, and trust agreements are not required to be registered. All information (e.g., the names of grantors and beneficiaries, and information regarding assets and estate plans) is kept private.
- Directed trusts — These trusts allow the duty of the trustee to be separated from the investment advisor.
- Qualified spendthrift trusts — These self-settled trusts afford immediate statutory protection against creditors, putting Wyoming among the most progressive trust jurisdictions in this regard.
Trust Protectors, Trust Advisors, and Special Purpose Entities:
- Purpose trusts — Allow for the support of a specific purpose, such as a charity or a pet.
- Private family trust companies — Allow direct family involvement in the investment of trust assets.
- Rapid formation of LLCs and other corporate structures — Allows for significant flexibility and control.
- Flexible trust modification — One of numerous benefits that allow flexibility and protection in innovative trust structures.
Click link below to download “The Wyoming Series LLC Memo”