State Comparison For Wealth Transfer Planning

We hope this finds you safe and healthy. 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

Regulated 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

Regulated 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.

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