Anonymous Wyoming Asset Protection Trust $3000 - WY Trust Attorney

Wyoming Asset Protection Trust

Anonymous Creditor Protection


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Why Establish an
Asset Protection Trust?


If you insure your home, car and health, then why not insure your assets? You may set up an asset protection trust for yourself, family or charity. Your trust can be used to protect assets, anonymously title property or as part of a larger estate plan.

A Wyoming asset protection trust allows you to protect assets without losing control, naming third party beneficiaries or moving assets to an offshore trust. This protects you from lawsuits, creditors, divorces, the government and plain bad luck.

Wyoming trust law is flexible and allows for a variety of trusts. Covered below are some variations and potential applications, e.g. self-settled, dynasty, perpetual and medicaid trusts etc. No matter your goal, our Wyoming trust attorney can help you achieve it. There are no residency requirements and you do not need to visit Wyoming.

What Assets
Can Be Protected?


Assets which can be protected include, but are not limited to:

  • Personal Residence or Home
  • Rental Properties & Real Estate Investments
  • Investment Accounts, e.g. Brokerage Accounts
  • Intellectual Property, e.g. Patents & Trademarks
  • Bank Accounts, e.g. Checking & Savings
  • Holding Companies & Subsidiaries
  • Bitcoin, Ethereum & Other Alternative Currencies
  • Limited Liability Companies
  • Corporations
  • Captive Insurance Companies
  • Property, Plant & Equipment
  • & More

What is a Trust?


A trust is an entity similar to a corporation, limited liability company or non-profit. It is a contractual agreement drafted by an attorney which is not registered with the government. This is how it remains anonymous.

It is similar to a safe that holds assets. The trust and its assets are managed by a trustee. The trustee may be a public trust company or a private trust company (controlled by you). You and the attorney will discuss which is best for you. Every trust is comprised of three parts:

1) The Settlor: This is the person who creates the trust and transfers their assets in.

2) The Beneficiary: This is the person who "benefits" from the trust. The assets are to be used for this person's benefit only. For a self-settled trust the settlor is the beneficiary.

3) The Trustee: This is the person or institution in charge of ensuring the trust is properly managed. For most intents and purposes the trustee may be viewed as the manager.

After the transfer the trust owns the assets. You may be a beneficiary who also controls the trust via the private trust company. At this point, trust assets cannot be used to satisfy creditor claims.

Wyoming Trust Benefits

The legislature here has worked hard to create an asset protection and tax haven. Wyoming trust law benefits are not loopholes. The statutes are meant to be taken advantage of.

  • Anonymous
  • Self-Settled, Qualified Spendthrift & Discretionary Trusts are allowed
  • Credit Protection Begins Immediately - No Waiting Period
  • No Income, Gift, Estate, Excise or Intangible Taxes
  • Multi-Generational, Perpetual & Dynasty Trusts
  • No Minimum Capital Investment
  • Trust Protector & Decanting Statutes
  • Maintenance is Half a Nevada Trust or Delaware Trust
  • Regulated & Unregulated Trust Companies Are Allowed

There are many forms a Wyoming asset protection trust can take. You can create a trust to provide during your lifetime while providing for your family afterward. They may be used for minimizing taxes, owning assets anonymously, protecting assets and more.

How To
Use a Trust


It would be a mistake to dismiss trusts as simply a subset of estate planning. Rather, trusts are sophisticated agreements providing a wide variety of benefits and uses. Below are just a few situations where forming a trust is beneficial:

1) Protect your personal residence and bank account from liabilities such as car accidents or other events personal injury attorneys love.

2) Doctors, attorneys and other professionals may shelter assets to avoid high malpractice and other insurance premiums. If your home, savings account and other assets are protected, then claimants have nothing to pursue.

3) Own a holding company and subsidiaries. This is common with real estate investors and companies with significant intellectual property. Find our Wyoming LLC formation service here.

4) It may be used as an alternative to a Prenuptial Agreement. Assets in an irrevocable trust are outside the marital estate. This places them beyond the divorce court's reach.

5) Avoid SALT Cap limits under the new tax law by using Non-Grantor Trusts.

Above are only a few potential applications of Wyoming's asset protection trust. There are as many applications as there are people and their situations.

What is a self-settled trust?


Put simply, a self-settled trust is a trust you form for your own benefit. It is anonymous and provides immediate credit protection. Other states require you to establish the trust for someone else, i.e. a third party trust. This limitation previously drove offshore trust formations. Domestic asset protection trusts now have the same benefits as trusts overseas without the complications.

The uses of such entities are varied. A trust formed prior to marriage is considered outside your marital estate. The assets are immune to divorce and make a prenuptial agreement unnecessary. A self-settled trust can also be the foundation of an estate plan either now or later on. Have a different use in mind? Contact us today.

What is a Dynasty Trust?


A dynasty trust is a long term trust designed to efficiently transfer wealth from generation to generation. It avoids transfer taxes such as estate tax, gift tax and the generation skipping tax (GST).

Beyond tax benefits, the dynasty trust also protects assets from a future generation's creditors. For example, teen age automobile accidents or divorces. These are called unintended beneficiaries. They are called unintended because when you set everything up your intent was not to pay for an automobile accident or for half the funds to go to your child's ex-spouse. With proper planning you can "lock out" unintended beneficiaries.

Some think because current estate tax exemptions are high they do not need to worry about estate taxes. This is false complacency. The limit has ranged from $1,000,000 to $21,000,000 over the previous 30 years. Where it will be when you pass away is anyone's guess. That is why it is smart to plan for an unexpected lowering of the estate tax exemption even if it is not immediately needed.

What is a Purpose Trust?


This entity does not have a beneficiary. It instead exists to further a non-charitable purpose or cause. Examples are the maintenance of a property or of a pet. While such formulations may seem odd they are enforceable by law. Note, a trust established for charity is in truth a purpose trust, but is instead referred to as a charitable trust.

What is a Statutory Trust?


Statutory trusts are filed with the Wyoming Secretary of State. They are commonly used for REITs (Real Estate Investment Trusts) and similar strategies. They are allowed in most states. Wyoming is unique, though, because the trustee may be an anonymous Wyoming limited liability company. A Wyoming statutory trust offering investments such as securities are overseen by the SEC (Securities and Exchange Commission).

Grantor vs Non-Grantor Trusts


Whether a trust is a grantor or non-grantor trust is a question of how the trust's income is taxed. If the income pass through to the beneficiaries, then it is a Grantor Trust. If the trust pays its own income taxes, then it is a Non-Grantor Trust.

This distinction has become more popular as this year's SALT Deduction limits come into place. This has driven many to establish Non-Grantor trusts for their real estate investments. Each trust qualifies for its own $10,000 deduction. Learn more about Irrevocable Income Only Trusts (IIOT) and their taxes here.

Domestic Trust vs Offshore Trust


Prior to the Alaska trust, those seeking protection from creditors were forced to go overseas. Several domestic jurisdictions redrafted their trust laws to directly compete with offshore trust havens. Some changes included allowing self-settled and dynasty trusts while shortening the statute of limitations to contest transfers. With such benefits available domestically offshore jurisdictions became less favorable.

There are legitimate reasons to establish an offshore asset protection trust for High Net Worth individuals with significant disposable assets. Increased reporting requirements and audit risk result in significant costs however. Those of more modest means will not find the advantages offshore that they seek. It is often easier to hide in plain sight via a Wyoming Domestic Asset Protection Trust (DAPT).

Revocable vs.
Irrevocable Trusts


A revocable trust is an estate planning tool for bypassing probate. It does not provide asset protection or help to avoid estate taxes. The trust can be dissolved or revoked at anytime, e.g. if a judge orders the trust's assets be used to pay personal debts.

An irrevocable trust is treated as its own person in the eyes of the law. For this reason, it cannot be revoked by a judge to pay your debts. The trust is its own entity with its own rights under the eyes of the law.

Do not let the term irrevocable scare you however. The trust we draft allows you to change beneficiaries at anytime for any reason. You may also act as your own trustee or appoint and remove other trustees at your discretion. Distributions must be approved by you and you may invest or use the trust's assets as you wish.

Choosing a
Wyoming Trust Company


Every Wyoming irrevocable trust is required to have a trustee. The trustee may be a public trust company service offered by a bank or similar institution. This is also referred to as an independent trustee.

These are generally desirable if a beneficiary, such as your child, is not financially responsible or has a drug problem. In such situations, a public trust company may help your children make wise investment decisions.

Those desiring more privacy or control may act as their own trustee. This is done via a Wyoming LLC which acts as your own person private trust company (PTC). The PTC is anonymous, controlled by you and reduces costs. This option is discussed in further detail below.

Assets That Cannot
Be Protected


A DAPT does not protect the following assets:

  • Property ordered for Child Support payments.
  • Property directly listed on a credit application.
  • Property fraudulently transferred pursuant to the Uniform Fraudulent Transfer Act if there is a claim within the statute.
  • Property is not protected from bankruptcy if transferred to defraud, delay or hinder if the transfer's within the statute.

As can be seen above, the Wyoming Asset Protection Trust protects almost any type of property; however, when conducting the transfer, you must also affirm as follows:

  • You have the full authority, right and title to transfer the property;
  • The transfer will not make you insolvent;
  • You do not intend to defraud creditors via the transfer;
  • You are not in, or have been threatened with, cort action, except those identified within the affidavit;
  • When transferring you may not be behind on child support more than 30 days;
  • You are not contemplating filing for Bankruptcy; and,
  • You must have and maintain the lesser of personal liability insurance of at minimum one million dollars or the fair market value of the trust transfers, whichever is less. This generally amounts to no more than $300 per year.

You may have concerns over the costs of hiring an Independent Trustee and turning control of the Trust and its assets over to a Trustee you do not have a working relationship with.  The alternative is to establish a Wyoming Single Family Private Trust Company to serve as Trustee. A Private Trust Company has the following benefits:

  • Formation.  The Wyoming Single Family Private Trust Company (“WPTC”) is either a Wyoming LLC or corporation established specifically to serve your family and may not serve the public.
  • Ownership.  The owner and manager is you and/or members of your family.
  • The Committees.  Your Family Trust Company designates committees relating to the administration and operation of your trust, which include an Distribution Committee, Trust Administration Committee and Investment Committee.
  • Wyoming Benefits.  Wyoming is a premier state for this since the Trustee is easy to form and administrate with zero contribution requirements and there no State oversight.  Most other states have minimum required contributions of between $200,000 and $500,000 and have significant regulation.  This makes Wyoming the most attractive state to form a Family Trust Company to act as Trustee of your DAPT or other family trust.
  • Service Agreements.  The WY PTC can enter agreements with advisors for investment and financial decisions. They may also contract with trust companies, family offices, accountants, and attorneys regarding administration.
  • Operating Agreement. The Single Family Private Trust Company is governed by it's operating agreement if it's an LLC, and by its Bylaws if it's a Corporation.

Requirements


The requirements for setting up and maintaining your structure include:

  • A Wyoming Domestic Asset Protection Trust (Qualified Spendthrift Trust) is formed by you under Wyoming law.
  • There must be at minimum one qualified trustee serving as Trustee.  You may not be a trustee.
  • The trustee must either be a resident of Wyoming or a person or institution authorized by Wyoming to act as a Trustee, i.e., a professional trustee.
  • A “Wyoming Private Trust Company” may be established to serve as the qualified trustee, and the client’s advisors in the client’s home state may serve an as Manager, Officer, Director, or agent of the Wyoming Private Trust Company.
  • You may remove and replace Trustees as you wish.
  • The trust is irrevocable, but modifications can be made, including but not limited to adding and removing beneficiaries and trustees.
  • The trust must name beneficiaries, which can include you, your family, friends and charities.
  • The Trustee generally retains the authority to invest, manage, and make distributions to beneficiaries; however, this authority must be in the Trustee’s sole discretion.
  • You may, however, act as investment advisor. An investment advisor can approvde, disapprove and direct a Trustee’s actions and inactions regarding the investing of trust assets and direct the management of all trust investments.
  • You may veto distributions.
  • Maintain a registered agent in Wyoming.

Do Wyoming Trusts have any risks?

  • Conflict of Laws. Every state's trust laws are different. There are states which do not allow self-settled anti-creditor trusts, or do not have as beneficial of terms. There exists little precedence for how courts shall decide when the laws of states conflict. It is, therefore, advisable to take one of two courses. First, you establish a Domestic Asset Protection Trust in your state of residence. If your state does not have favorable trust laws, then assets should be held within Wyoming via a business entity, bank etc.
  • Full Faith and Credit Clause. This clause of the U.S. Constitution requires states provide full credit and faith to laws from other states. The concern is if an out of state court rules against an asset protection trust and the creditor attempts to pursue the Trustee. This matter has yet to be addressed by the courts. To stymie such attempts we recommend domiciling your assets with Wyoming only institutions.
  • Bankruptcy. There is a ten year look back period for transfers to trusts with the intent of hindering, delaying or defrauding a creditor. If you were found to be intentionally hindering, delaying or defrauding an investor, then the assets in the trust will not be protect from bankruptcy proceedings for ten years.

Wyoming Family Office


Beyond establishing a Wyoming Private Trust Company, you will be required to establish a Family Office to manage and administer your Wyoming Private Family Trust Company, family trust assets, and closely held businesses. We provide the following family office services:

  • Forming a Private Trust Company
  • Registered Agent Services
  • Physical Address in Wyoming
  • Mail Scanning & Forwarding
  • Wyoming Phone Number
  • Wyoming Domiciled Bank Account
  • Assistance with Wyoming Secretary of State filings.
  • Counseling of family members regarding assets and trusts.
  • Coordination with advisors, professionals and managers.

A Wyoming Single Family Private Trust Company May Be Trustee of the following types of Trusts:


  • DAPT.  It is required at minimum one Trustees be incorporated under or be a resident of Wyoming.  Rather than hire a WY Resident, Bank, or Public Trust Company, you may form a WPTC to act as Trustee.
  • Wyoming Dynasty Trust.  The WPTC may also serve as Trustee of a Wyoming Dynasty Trust.  In order to establish a Wyoming Dynasty Trust, which can last for up to 1,000 years, the trust is required to be governed by Wyoming law and the trustee must maintain a place of business in Wyoming, administer the trust in Wyoming, or be a resident of Wyoming. Rather than hiring a Wyoming Bank or Resident to serve as Trustee of the Wyoming Dynasty Trust, you may establish a WPTC to serve as Trustee.
  • Existing Family Trusts.  For families with existing Trusts that require a Fiduciary or Trustee to act as Trustee, a WPTC may qualify as a Corporate Fiduciary, which can serve as the Trustee.  The WPTC can also help to bring the administration of various family trusts under the administration of one WPTC.
  • Qualified Domestic Trust A WPTC may serve as the U.S. Trustee of a Qualified Domestic Trust established for the benefit of a surviving spouse that is not a United States Citizen.
  • Wyoming Asset Protection Trust.  Those seeking to take advantage of Wyoming's favorable tax and trust law must make a connection to WY. This can be done via a Wyoming Private Trust Company. These are also called self-settled, dynasty and qualified spend-thrift and creditor protection trusts.

Why Our Wyoming Trust Attorney?


Our trust attorney, Mark Pierce, helped craft Wyoming's statutes. He jokes this means he did a lot of work for no pay. In truth, it means you will be in the hands of somebody who knows how to make a Wyoming asset protection trust for you.

Our firm opened its doors in 2003 and has focused exclusively on estate planning and wealth management since. We form hundreds of Wyoming trusts each year and would be happy to help with yours too.

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Cloud Peak Law Group, P.C.

203 S Main St #3000 Sheridan, WY 82801


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