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.
Our updated summary includes a broader aggregation of top US trust jurisdictions. You can view a downloadable PDF with summary tables and statute references here.
Taxation
Tax Imposed Due to Resident Settlor
- Wyoming: No
- Alaska: No
- Delaware: Yes, provided trust has resident beneficiary
- Nevada: No
- New Hampshire: No
- South Dakota: No
- Tennessee: No
Tax Imposed Due to Resident Fiduciary
- Wyoming: No
- Alaska: No
- Delaware: Yes, provided trust has resident beneficiary
- Nevada: No
- New Hampshire: No
- South Dakota: No
- Tennessee: No
Tax Imposed Due to Resident Beneficiary
- Wyoming: No
- Alaska: No
- Delaware: No
- Nevada: No
- New Hampshire: No
- South Dakota: No
- Tennessee: No
Resident Non-Grantor Trusts
Maximum Resident Non-Grantor Trust Income/Capital Gains Tax
- Wyoming: None
- Alaska: None
- Delaware: 6.6%, deduction allowed for nonresident beneficiaries
- Nevada: None
- New Hampshire: None
- South Dakota: None
- Tennessee: None
Corporate Income Tax
- Wyoming: None
- Alaska: None
- Delaware: 8.7% of DE income
- Nevada: None
- New Hampshire: None
- South Dakota: None
- Tennessee: 6.5%
LLC Income Tax
- Wyoming: None
- Alaska: None
- Delaware: None
- Nevada: None
- New Hampshire: None
- South Dakota: None
- Tennessee: 6.5%
Estate/Gift Tax
- Wyoming: None
- Alaska: None
- Delaware: None
- Nevada: None
- New Hampshire: None
- South Dakota: None
- Tennessee: None
Life Insurance Premium Tax
Qualified
- Wyoming: None
- Alaska: 2.7% for the first $100K, 0.1% thereafter
- Delaware: 1.75%
- Nevada: None
- New Hampshire: 1.25%
- South Dakota: 2.5% for the first $100K, 0.08% thereafter
- Tennessee: 1.75%
Non-Qualified
- Wyoming: 0.75% for the first $100K, 0.075% there- after
- Alaska: 2.7% for the first $100K, 0.1% thereafter
- Delaware: 2% below $100K, none thereafter
- Nevada: 3.5%
- New Hampshire: 1.25%
- South Dakota: 2.5% for the first $100K, 0.08% thereafter
- Tennessee: 1.75%
Retaliatory
- Wyoming: Yes
- Alaska: Yes
- Delaware: Yes
- Nevada: Yes
- New Hampshire: Yes
- South Dakota: Yes
- Tennessee: Yes
Modern Trust Laws
Directed Trust
- Wyoming: Yes
- Alaska: Yes
- Delaware: Yes
- Nevada: Yes
- New Hampshire: Yes
- South Dakota: Yes
- Tennessee: Yes
Trust Protector
- Wyoming: Yes
- Alaska: Yes
- Delaware: Yes
- Nevada: Yes
- New Hampshire: Yes
- South Dakota: Yes
- Tennessee: Yes
NJSA Statute
- Wyoming: Yes
- Alaska: No
- Delaware: Yes
- Nevada: Yes
- New Hampshire: Yes
- South Dakota: Yes
- Tennessee: Yes
Virtual Representation
- Wyoming: Yes
- Alaska: Yes
- Delaware: Yes
- Nevada: Yes
- New Hampshire: Yes
- South Dakota: Yes
- Tennessee: Yes
By Holder of General Power
- Wyoming: Yes
- Alaska: Yes
- Delaware: Yes
- Nevada: Yes
- New Hampshire: Yes
- South Dakota: No
- Tennessee: Yes
By Parent/Guardian
- Wyoming: Yes
- Alaska: Yes
- Delaware: Yes
- Nevada: Yes
- New Hampshire: Yes
- South Dakota: Yes
- Tennessee: Yes
By Person with Identical Interest
- Wyoming: Yes
- Alaska: Yes
- Delaware: Yes
- Nevada: Yes
- New Hampshire: Yes
- South Dakota: Yes
- Tennessee: Yes
Rule Against Perpetuities (RAP)
- Wyoming: 1,000 years
- Alaska: 1,000 years
- Delaware: Perpetual / 110 years for real property
- Nevada: 365 years
- New Hampshire: Perpetual
- South Dakota: Perpetual
- Tennessee: 360 years
Court Records Sealed
- Wyoming: Automatic, inquiring party must show cause
- Alaska: No
- Delaware: No
- Nevada: Upon court order
- New Hampshire: Upon court order; see Petition of Keene Sentinel, 136 NH 121 (1992)
- South Dakota: Automatic, inquiring party must show cause
- Tennessee: No
Trust Required to Register
- Wyoming: No
- Alaska: No
- Delaware: No
- Nevada: No
- New Hampshire: No
- South Dakota: Optional
- Tennessee: Optional
Decanting
- Wyoming: Yes
- Alaska: Yes
- Delaware: Yes
- Nevada: Yes
- New Hampshire: Yes
- South Dakota: Yes
- Tennessee: Yes
Forced Heirship Precluded
- Wyoming: Yes
- Alaska: No
- Delaware: No
- Nevada: No
- New Hampshire: Yes
- South Dakota: No
- Tennessee: No
Regulated PTC Authorized
- Wyoming: Yes
- Alaska: No
- Delaware: LPTCs only
- Nevada: Yes
- New Hampshire: Yes
- South Dakota: Yes
- Tennessee: Yes
Unregulated PTC Authorized
- Wyoming: Yes
- Alaska: No
- Delaware: No
- Nevada: Yes
- New Hampshire: Yes, lightly regulated
- South Dakota: No
- Tennessee: No
We hope this is helpful for you and your client families; please contact us to talk about Wyoming-based fiduciary solutions.
