Proving once again that trust situs matters, South Dakota (for the 2nd year in a row) is ranked the top dynasty trust state while Delaware slips again this year to the seventh position behind Ohio and Wyoming.  The rankings chart, an annual ranking of dynasty trust states from across the country published by Nevada attorney Steve Oshins, is an excellent resource for advisors and clients because of the methodical and objective approach to evaluating the factors that impact the viability of dynasty trusts states such as whether they have an asset protection statute and how effective it is in comparison to other states.  In addition, the chart considers state taxation on trusts and whether the state has directed trust and decanting statutes. 

The chart accentuates the vital importance of considering alternative trust jurisdictions in the wealth and trust planning process to ensure that clients are availing themselves of the most progressive trust laws in the country, particularly in the area of dynasty trust formation, which continues to be a very hot topic.

An important factor to consider relative to whether a dynasty trust state is the best for clients, not considered in Steve Oshins’ chart, is privacy. States have different privacy provisions protecting information contained in a trust from becoming public. Pennsylvania has no privacy provision and, after three (3) years, trust information can become public in Delaware. South Dakota is the only  dynasty trust state that has a total seal on trust information forever. Clearly, this is also an important factor to consider when determining where to place a trust in the wealth planning process.

Steve Oshins’ chart can be viewed by clicking on the image below.

If you have any questions, please feel free to contact us via our contact page.

13-10-01 2013 Oshins Dynasty_Trust_Rankings

 

 

 

© Copyright 2024 - Bridgeford Trust Company

The information on this website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal and/or tax advice for any individual case or situation. The information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship. All information and material appearing on bridgefordtrust.com is copyrighted. Reproduction in whole or in part is not permitted without written permission.
Subscribe To Our Blog
You are now leaving Bridgeford Trust Company's website and are being redirected to a website that is external to and independent of Bridgeford Trust Company.