Wyoming provides a favorable tax and trust environment, featuring modern trust laws and favorable trust structures. Combined with the Jackson Hole way of life, these elements offer families opportunities to build, protect, and sustain “True Wealth” that are virtually unmatched anywhere else in the world.
Favorable Tax Environment
- No state income tax
- No state capital gains tax
- No state corporate income tax
- No state income tax on trust income
- No state gift tax
- No state estate or inheritance tax
- No intangibles tax
- Low insurance premium taxes
- Favorable Trust Environment
A Wyoming trust can be established, even if beneficiaries or grantors live outside of the state, by utilizing a Wyoming trustee. The Trustee can be a Private Single Family Trust Company, Publicly Chartered Trust Company or an individual who is a Wyoming resident. Wyoming trustees may be directed trustees, which separates the investment and administrative functions. This allows families to utilize the investment advisors of their choice, regardless of the advisor’s location.
Favorable Trust Laws
Wyoming has adopted the Uniform Trust Code which allows for favorable trust administration. Wyoming law permits a Private Single Family Trust Company to be established as a Wyoming corporation or LLC, to act as trustee of a Wyoming trust, satisfying the need for a Wyoming Trustee. Wyoming law protects privacy by not requiring that the trusts be recorded or filed with the State. Wyoming allows “decanting” making it easier to reform and migrate trusts when necessary. Through charging order protection for LLC’s and some of the trust structures below, Wyoming provides strong asset protection.
Favorable Trust Structures
- DYNASTY TRUSTS
- Can have duration of up to 1,000 years in Wyoming. These trusts can protect family wealth by minimizing transfer taxes over multiple generations.
- ASSET PROTECTION TRUSTS
- Allow beneficiaries to enjoy assets within the trust while protecting those assets from future creditors.
- DIRECTED TRUSTS
- Separate investment functions from trust administration allowing investment flexibility while maintaining the benefits of a Wyoming trust.
- WYOMING INCOMPLETE NON-GRANTOR TRUSTS (WING’s)
- Allow the grantor to retain a beneficial interest in trust assets and avoid state income tax in the grantor’s home state.
- PRIVATE SINGLE FAMILY TRUST COMPANIES (PSFTC)
- Wyoming is one of a limited number of states that permits PSFTCs to act as trustee for a family’s trusts.