Bank of Jackson Hole Trust & Wealth Partners provides confidential wealth management solutions with complete dedication to the needs of clients and their advisors.
Call on us to serve in any fiduciary capacity as trustee, executor, or conservator or as investment manager, or as agent for anyone acting in one of these roles. Our personalized fiduciary services are developed to meet client intentions, protect legacies and evolve to meet emerging needs.
We are your Trust & Wealth Partners. We understand, respect, and enhance your client relationships and your irreplaceable insights into their financial and estate planning needs.
Elevate Your Expectations of what a Professional Trustee and Fiduciary Can Do For Your Clients
Benefits of a Partner in the State of Wyoming
Trust, Tax and LLC Benefits in Wyoming
In recent years Wyoming adopted the Uniform Trust Code (UTC), but with hundreds of substantive modifications, to make Wyoming one of the top settlor friendly states in the U.S. to site trusts with US beneficiaries. The primary benefits of a Wyoming trust situs include:
• Asset Protection in self-settled trusts more »
• Grantor and beneficiary privacy more »
• No income tax on trust and other income more »
• No state inheritance tax more »
• Rule Against Perpetuities abolished allowing 1,000 year trusts and generation-skipping transfer tax planning more »
• Preferred situs due to deteriorating benefits of offshore trusts with US beneficiaries as a result of FATCA more »
• Directed Trustee authorized by statute more »
To learn more, please contact one of our
Trust & Investment Partners professionals.
RESOURCES
Wyoming Law Review
The Undiscovered Country: Wyoming’s Emergence as a Leading Trust Situs Jurisdiction
Bloomberg Business
The World’s Favorite New Tax Haven Is the United States
Utah Bar Journal
Domestic Asset Protection Trusts: Comparison of Wyoming vs Utah
WYOMING BENEFITS IN MORE DETAIL
Asset protection in self-settled trusts:
Wyoming is the preferred situs state in the U.S. to achieve asset protection as a result of:
Wyoming allows self-settled spendthrift trusts by statute. A self-settled trust is typically an irrevocable trust in which the grantor is also a discretionary beneficiary.
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Most states and the typical provisions of the Uniform Trust Code do not protect a beneficiary when the beneficiary is the same person who created and settled the assets to the trust. Wyoming’s self-settled spendthrift laws are the broadest in the U.S. with regard to powers the grantor may retain. By a 2007 amendment to the Wyoming UTC, grantors of self-settled spendthrift trusts to which Wyoming law applies may receive: (a) income from the trust; (b) distributions from a charitable annuity trust or unitrust; (c) annual distributions of up to 5% of the initial value of the trust; (d) discretionary distributions of principal at the trustee’s discretion or based upon an ascertainable standard even if the grantor-beneficiary is a trustee; and (e) occupy real estate held in a qualified personal residence trust.
Wyoming provides protection for discretionary and mandatory distributions from self-settled and third party trusts. Wyoming statutes provide a clear definition of what qualifies as a “discretionary distribution” and a “discretionary trust” providing certainty to which trusts and distributions the protections apply. Furthermore, it is clear by law that mandatory distributions may not be attached by creditors until they are received by the beneficiary. This prevents creditors from compelling a distribution of mandatory distributions. These protections apply even if the grantor-beneficiary is also a trustee.
No state gift or inheritance tax:
Wyoming does not impose a state tax on gifts or transfers at death by Wyoming domiciled persons.
Grantor and beneficiary privacy:
Wyoming does not require the recording of a trust or supervision of trust administration thereby keeping the identity of the trust, its grantors and beneficiaries out of the public record.
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Furthermore, Wyoming, which was the first state in the U.S. to adopt an LLC statute, has revised its LLC laws to provide complete privacy of the members of the LLC, including trusts that hold LLC interests. Wyoming does not require disclosure of whether the LLC is manager or member managed or the names of the persons with authority to act on behalf of the LLC. These Trust and LLC privacy statutes allow trusts with LLC interests to attain greater privacy than in other states.
Preferred alternative to offshore trusts with US beneficiaries:
With the enactment of the Hiring Incentives to Restore Employment (HIRE) Act and the Foreign Account Tax Compliance Act (FATCA), the prior benefits of offshore sited trusts with U.S. beneficiaries has narrowed or arguably been negated.
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HIRE focused on the creation of jobs in the U.S. by providing tax incentives to businesses that hire and retain employees. FATCA was enacted to offset the revenue loss created by HIRE. FATCA increased the taxation, reporting requirements and enforcement of offshore accounts and trusts. Most notably, for foreign trusts with U.S. beneficiaries, FATCA increases reporting requirements, reduces privacy protections, and imposes increased penalties on taxpayers who fail or underreport trust income or the use of trust property. As the benefits of foreign trust jurisdictions wane, many U.S. persons are moving their assets and trusts onshore where they get many of the same benefits without the implications of FATCA and with fewer risks associated with foreign jurisdictions. Onshore, Wyoming is emerging as one of the most preferred U.S. trust situses.
No income tax on trust and other income:
Wyoming is an ultra-tax friendly state with no state income tax on trusts as well as no individual or corporate income tax, no tax on out of state retirement income…
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…no tax on mineral interests, no personal property tax and a relatively low real property tax. Furthermore, the chance that Wyoming will ever adopt a state income tax is very low as such a move would require a state constitutional amendment.
Rule against perpetuities abolished and GSTT planning:
Wyoming has abolished the rule against perpetuities in favor of a 1,000 year (term of years) limit allowing for almost indefinite multi-generational planning.
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In addition to allowing families to retain family assets for as long as the family exists, it protects subsequent transfers from the implication of federal transfer taxes for so long as assets remain in trust. Under current federal law, individuals can transfer a certain dollar amount of property during life and at death without paying any transfer tax, including gift, estate and GST taxes. By funding a Wyoming sited trust with the exempt amount and/or taxable assets after payment of estate tax upon the first transfer, future generations will benefit from the trust property and appreciation thereof free of the implications of federal transfer taxes for up to 1,000 years for so long as the property remains in the trust. Furthermore, the consensus among experts suggests that the extended term of years approach as adopted by Wyoming avoids the Delaware tax trap, although the consensus is not unanimous.
Directed Trustee authorized by statute:
There may be circumstances where the separation of duties and responsibilities among multiple fiduciaries create investment and administration benefits to the trust and its beneficiaries.
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Often a family may have a long time investment advisor who is not able or does not desire to serve as the general trustee after a trust grantors’ death. The grantor may wish to have their investment advisor continue to manage their investment portfolio after death as a directed trustee while naming another professional trustee, such as the Bank of Jackson Hole Trust & Wealth Partners, for all other administrative responsibilities over the trust and other assets. Wyoming has specifically enacted a directed trustee statute allowing the grantor in the trust instrument to create a separation of duties among multiple fiduciaries. Most states do not have directed trustee statutes. Similarly, Wyoming is only one of two states with trust protector statutes that provide extensive trust protector and modification powers.
Wealth Management Services
Trust & Investment Partners is a division of the Bank of Jackson Hole with its head office located in Jackson, Wyoming. In serving our clients we work closely and cooperatively with our clients’ other trusted advisors to help design, implement and manage a holistic financial and legacy plan for the benefit of our mutual clients. Often these plans include multigenerational planning that requires a long term professional fiduciary to provide independent and consistent service to the current and subsequent generations. The professionals of Trust & Investment Partners recognize and respect the responsibility placed in us by our clients and their advisors. We are committed to furthering the directives of our clients in the best interest of the clients and their legatees.
The bank has developed an experienced and caring team of professionals capable of managing the following investment, financial and estate management needs of our clients:
Fiduciary Appointments for most trust and estate administration including:
Revocable Living Trusts
Irrevocable Family Trusts
Charitable Remainder & Lead Trusts
Special Needs Trusts
Life Insurance Trusts
Dynastic Trusts
Directed Trustee
Estate Administration
Investment Management for:
Individuals & Trusts
Endowments, Charities & Entities
Retirement Accounts
Our Team / Contact Us
To discuss the particular needs of your clients, the benefits of working with Bank of Jackson Hole, Trust & Wealth Partners, or the benefits of a Wyoming trust situs, please contact us.
Trust & Wealth Partners
Main Office: 10 East Pearl Ave., Jackson, WY 83001
Mailing Address: P.O. Box 7002, Jackson, WY 83002
Phone Number: (307) 732-3071
Facsimile: (307) 734-9539
Other team members in the Jackson, Wyoming office directly serving clients include:
*Available via trustee situs in Wyoming.