WHY WYOMING
A LEADING ENVIRONMENT FOR TRUSTS AND BUSINESS ASSETS
Wyoming has earned a reputation as one of the most progressive and favorable states for trusts and business assets. For more than ten straight years, Wyoming has ranked number one on Tax Foundation’s State Business Tax Climate Index.
A powerful combination of trust and LLC advantages, tax benefits, asset protection laws, business friendly regulations, fiscally sound state government, and a responsive legislature, makes Wyoming one of the best trust and LLC environments in the country.
Favorable Tax Laws
In Wyoming, there is no income tax, no corporate income tax, no gift tax, no inheritance tax, no capital gains tax, and low property tax. All of these advantages apply to residents and nonresidents accumulating income in an irrevocable trust.
Modern Trust Laws
Wyoming stands above the rest, offering innovative and modern trust laws that create a flexible and settlor-friendly environment. A Wyoming trust can last up to 1,000 years allowing assets to pass from generation to generation free of estate and generation skipping transfer tax.
Strong Privacy Laws
Wyoming trusts and private companies are protected by some of the strongest privacy laws in the country, attracting domestic and international families desiring discrete financial planning. Trusts do not need to register with a local court or registry of any kind. Additionally, settlors can create a “silent” trust with no requirement to notify the beneficiaries of the trust. For multiple layers of privacy and protections, families can own assets through a Wyoming limited liability company, which is then owned by a Wyoming trust.
Liability Protection
Many states offer some form of liability protection for trusts, but Wyoming has the strongest trust asset protections in the country. The Wyoming law explicitly states that beneficiaries of statutory trusts have the same limited liability protections as a shareholder of a corporation. The creation of a Wyoming LLC includes a protection called a charging order protection, which protects the assets inside the LLC from the owner’s personal creditors. Additionally, the Wyoming LLC Statute considerably limits a court’s ability to pierce the corporate veil.
Key Differentiators Between Top Trust States
Wyoming vs. Delaware
Delaware is extremely attractive for publicly traded companies because of decades of favorable corporate caselaw regarding management, shareholder issues, and mergers and acquisitions. However, Delaware also has a state income tax and reporting and disclosure requirements that Wyoming does not, making Wyoming more attractive for private business assets.
Wyoming vs. Nevada
Nevada has corporate taxes, Wyoming does not. Wyoming has less expensive filing and licensing fees and stronger privacy laws than Nevada.
Wyoming vs. South Dakota
Wyoming ranks number one on the Tax Foundation’s State Business Tax Climate Index, while South Dakota ranks number two. South Dakota is the most comparable state to Wyoming for trust and privacy laws.
