In the current environment, many families are reevaluating and modifying their fiduciary structures. To assist in these discussions, we have created a reference summary of state laws that client families should consider when establishing wealth transfer plans and structures, including taxation, trust laws, asset protection, and regulated and unregulated private trust companies. You can view a downloadable PDF here.
Taxation
Law
Wyoming
Delaware
Nevada
South Dakota
Tax Imposed Due to Resident Settlor
No
Yes
No
No
Tax Imposed Due to Resident Fiduciary
No
No
No
No
Tax Imposed Due to Resident Beneficiary
No
Yes
No
No
Resident Non-Grantor Trusts
Maximum Resident Non-Grantor Trust Income / Capital Gains Tax
None
6.6%, deduction allowed for nonresident beneficiaries
None
None
Corporate Income Tax
None
8.7% of DE income
None
None
LLC Income Tax
None
None
None
None
Estate / Gift Tax
None
None
None
None
Life Insurance Premium Tax
Qualified
None
1.75%
None
2.5% below $100K, 0.08% thereafter
Non-Qualified
0.75% below $100K, 0.075% thereafter
2% below $100K, none thereafter
3.5%
2.5% below $100K, 0.08% thereafter
Retaliatory
Yes
Yes
Yes
Yes, but only on first $100K annual premium
Modern Trust Laws
Law
Wyoming
Delaware
Nevada
South Dakota
Directed Trust
Yes
Yes
Yes
Yes
Trust Protector
Yes
Yes
Yes
Yes
NJSA Statute
Yes
Yes
Yes
Yes
Rule Against Perpetuities (RAP)
1,000 years
Perpetual / 110 years for real property
365 years
Perpetual
Court Records Sealed
Automatic, inquiring party must show cause
No
Upon court order
Automatic, inquiring party must show cause
Trust Required to Register
No
No
No
Optional
Decanting
Yes
Yes
Yes
Yes
Forced Heirship Precluded
Yes
No
No
No
Regulated PTC Authorized
Yes
LPTCs only
Yes
Yes
Unregulated PTC Authorized
Yes
No
Yes
No
Virtual Representation
Yes
No
Yes
No
By Holder of General Power
Yes
Yes
Yes
No
By Parent / Guardian
Yes
Yes
Yes
Yes
By Person with Identical Interest
Yes
Yes
Yes
Yes
Statute References
Maximum Resident Non-Grantor Trust Income/Capital Gains Tax
Delaware
DE 30-1102(a)(14)and 30-1634-6
Corporate Income Tax
Delaware
DE 30-1902(a)
Life Insurance Premium Tax: Qualified
Wyoming
WS § 26-4-103(j)
Delaware
DE 18-702(c)(1)
Nevada
NRS 680B.025
South Dakota
SD 10-44-2(1)(a)
Life Insurance Premium Tax: NON-Qualified
Wyoming
WS § 26-4-103(b)(i)(D)
Delaware
DE 18-702(c)
Nevada
NRS 680B.025
South Dakota
SD 10-44-2(1)(a)
Life Insurance Premium Tax: Retaliatory
Wyoming
WS § 26-3-130
Delaware
DE 18-532
Nevada
NRS 680A.330
South Dakota
SD 58-6-70
Directed Trust
Wyoming
WS § 4-10-718
Delaware
DE 12-3313
Nevada
NRS 163.553 et. seq.
South Dakota
SD 55-1B-1 et. seq.
Trust Protector
Wyoming
WS § 4-10-710
Delaware
DE 12-3313(f)
Nevada
NRS 163.5553 et. seq.
South Dakota
SD 55-1B-6
NJSA Statute
Wyoming
WS § 4-10-111
Delaware
DE 12-3338
Nevada
NRS 164.940
South Dakota
SD 55-18-1(12)
Virtual Representation by Holder of General Power
Wyoming
WS § 4-10-302
Delaware
DE 12-3547(c)
Nevada
NRS 164.038(3)
Virtual Representation by Parent / Guardian
Wyoming
WS § 4-10-303
Delaware
DE 12-3547(d)
Nevada
NRS 164.038(4)
South Dakota
SD 55-18-9(3)
Virtual Representation by Person with Identical Interest
Wyoming
WS § 4-10-304
Delaware
DE 12-3547(a)
Nevada
NRS 164.038(1)
South Dakota
SD 55-18-9(13)
RAP
Wyoming
WS § 34-1-139
Delaware
DE 25-503
Nevada
NRS 111.1031
South Dakota
SD 43-5-8
Court Records Sealed
Wyoming
WS § 4-10-205
Nevada
NRS 669A.256
South Dakota
SD 15-15A-7(w), 21-22-28
Trust Required to Register
South Dakota
SD 55-1-56
Decanting
Wyoming
WS § 4-10-816(a)(xxviii)
Delaware
DE 12-3528
Nevada
NRS 163.556
South Dakota
SD 55-2-15
Forced Heirship Precluded
Wyoming
WS § 4-10-504 et. seq.
Regulated Private Trust Company Authorized
Wyoming
WS § 13-5-601 et. seq.
Delaware
5 DEL 5-774
Nevada
NRS 669A.140
South Dakota
SD 51A-6A-7
Unregulated Private Trust Company Authorized
Wyoming
WS § 13-5-701 et. seq.
Nevada
NRS 669A.080
We hope this is helpful for you and your client families; please contact us to talk about Wyoming-based fiduciary solutions.
