The Delaware Advantage … The first state leading the way in personal trusts
For over 250 years, Delaware’s Court of Chancery has been developing legal precedent in trust and corporate law. This helps to make Delaware an alluring place to establish personal trusts, due to its leading trust jurisdiction. Delaware is one of the few states that offer many advantages to not only Delaware residents, but individuals who reside in other states.
The advantages of creating a trust in Delaware are many:
- Direction Trust – Delaware law permits the use of a third party investment advisor through its unique statute.
- Greater Tax Reward – Delaware irrevocable trusts are exempt from Delaware income tax on accumulated earnings and capital gains if there are no remainder beneficiaries who are Delaware residents.
- Asset Protection from Creditors – Protecting trust assets from creditors is a primary consideration in Delaware, eliminating the need to go off shore.
- Confidentiality – Delaware goes to great lengths to protect the confidentiality of a trust.
- Spendthrift Trusts – Delaware’s statue offers maximum protection from creditor’s claims.
- Dynasty Trusts – Delaware abolished the rule against perpetuities for personal property, allowing a perpetual trust.
- Total Return Unitrust – Delaware was the first state to adopt a Total Return Unitrust statute, which provides more discretion to satisfy the interests of current beneficiaries and preserve assets for future beneficiaries.
Let the professionals of the WSFS Trust & Wealth Management Division help you and your advisors evaluate whether a trust in Delaware is right for you.
We can help clients from any state utilize Delaware’s trust and tax savings benefits. If you have any questions or would like to schedule a meeting please Contact Us.
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