What's a Statutory Trust
A statutory business trust is established to engage in business, often between parties which are not family. Unlike other trusts, the "Statutory Trust Certificate of Trust" is filed with the Wyoming Secretary of State. This is a publicly accessible document that we complete for you to preserve your privacy. However, unlike our standard asset protection trusts, this does create a public paper trail.
Needing to engage in business should not be the sole determining factor when choosing this type of entity. For example, a Wyoming Asset Protection Trust can own an LLC which engages in business, but this would not be the preferred setup if the intended beneficiaries were not related family members.
Such a trust functions as a private contract which governs business activities. Specifically, assets are placed into the trust and overseen by one or more trustees. This is done on behalf of the trustor(s) who retain a beneficial interest in the trust. Certain stipulations can be put in that protect all involved. For example, while the trust may have five years of operating capital, it would only be allowed to distribute one year of operating funds at a time to prevent their misuse.
Who Should Consider a Dynasty Trust?
These trusts are generally for families concerned about estate taxes. Wyoming has no estate tax and the federal limit has recently been raised. However, the federal ceiling has historically increased and decreased unexpectedly. These changes often coincide with a change in administrations, Congress being controlled by a new party, or as part of larger tax reforms. This is to say, while you may currently be under the exemption, there is nothing to say you will be in the future. It is thus imperative to plan as though your current exemptions may not last.
Wyoming Trust Companies
Every Wyoming Trust is required to have a trustee. The trustee is in effect the manager of the trust. They oversee its affairs and ensure the trust's assets are being used as intentioned. Previously, families were often forced to employ the services of a public trust company, e.g. a bank or other trustee offering services to the public. Recently, though, unregulated private trust companies have come into vogue. They allow greater control and reduce costs. There is no extra layer of bureaucracy, nor is there the need to pay a third party. While private trust companies are generally preferable, there are circumstances where a public trustee is better. For example, if there is a disagreement between beneficiaries, then having an independent trustee adjudicate can lead to less squabbling between family members.
Wyoming Trust Attorney
You should not leave an important documents and decisions to luck. There are non-legal providers who provide everybody with a template trust. Leaving such matters to chance greatly increases the risk of having the trust be broken or your family not enjoying the planned upon tax benefits. Our Wyoming Trust Attorney helped draft Wyoming's trust laws and with us you will be in good hands.
Generation Skipping Transfer Tax
(GSTT or GST)
Poor planning can erode the value of a trust over time through unnecessary taxation. A Dynasty trust avoids the gift tax (which is incurred when living), estate tax (when the giver passes away), and the GST (occurs when transferring assets to a beneficiary that's at least two generations removed from the giver). GST currently imposes a tax rate equal to the highest marginal tax rate. Proper planning can limit or avoid these taxes altogether.
Dynasty Trust Costs
We charge $7,500 to establish an asset protection trust and accompanying private trust company. If there are advanced estate tax planning considerations, or you desire additional trusts, then there are additional costs. The ongoing maintenance costs are $500 per year. Please contact us if you have additional questions about pricing.
Why a Dynasty Trust in Wyoming?
Wyoming's legislature has worked hard to make us a preeminent trust jurisdiction. Our trust laws have been designed to attract capital through nation, and world, leading asset protection and tax benefits. For example, Wyoming has no state income taxes. Our trusts can also contain a spendthrift clause which makes it difficult for creditor's to attach to a beneficiaries beneficial interest. While a Wyoming Dynasty Trust is irrevocable, our state is flexible in allowing the trust documents to be altered as your family's needs change. Contact us today for more information on establishing a Dynasty Trust in Wyoming.