Wyoming Dynasty Trust Laws

Comprehensive guide to Wyoming's trust statutes for dynasty planning.

Last reviewed: 2025-12-21 | 2025 General Session
95
Dynasty
100
State
90
Asset
100
Directed
95
Decanting

Is Wyoming right for your trust?

Compare Wyoming against other top jurisdictions based on your specific planning goals.

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Dynasty Duration

How long can a trust last in this jurisdiction? States that have abolished the Rule Against Perpetuities allow trusts to continue indefinitely, maximizing multigenerational wealth transfer.
95/100
1,000 years

Wyoming abolished the Rule Against Perpetuities in 2003, allowing trusts to last up to 1,000 years. While not perpetual, this effectively provides dynastic duration for any practical planning purpose. The 1,000-year limit applies to both real and personal property.

Statutory References

W.S. § 34-1-139Rule against perpetuities; duration of trust
Verified: 2025-12-21

State Income Tax

Does the state impose income tax on trust income? States with no income tax or favorable trust taxation rules can significantly reduce the tax burden on trust earnings.
100/100
No state income tax

Wyoming's constitution prohibits state income tax. This applies to individuals, corporations, and trusts. Trust income is not taxed at the state level regardless of trustee location, beneficiary location, or grantor residence.

Statutory References

Wyoming Constitution, Article 15, § 18Constitutional prohibition on state income tax
Verified: 2025-12-21

Asset Protection

How strong are the state's Domestic Asset Protection Trust (DAPT) laws? Key factors include statute of limitations for fraudulent transfer claims, exception creditors, and judicial history.
90/100
Strong DAPT with 2-year statute of limitations

Wyoming enacted its Qualified Spendthrift Trust statute in 2007. The 2-year statute of limitations for fraudulent transfer claims is competitive with South Dakota and Nevada. Self-settled spendthrift trusts are permitted.

Conditions & Requirements

  • Requires qualified Wyoming trustee (individual resident or WY trust company)
  • Some trust assets must be deposited or held in Wyoming

Important Considerations

  • ⚠️Child support and spousal support are exception creditors
  • ⚠️Federal government claims (tax liens, Medicare/Medicaid) remain enforceable
  • ⚠️Pre-existing tort claims may reach assets if judgment entered within 2 years

Statutory References

W.S. §§ 4-10-501 through 4-10-523Qualified Spendthrift Trusts (DAPT)
W.S. § 4-10-510Statute of limitations for fraudulent transfers
Verified: 2025-12-21

Directed Trust & Trust Protector

Does the state have robust statutes for directed trusts (separating investment and distribution duties) and trust protectors? These structures provide flexibility and professional management.
100/100
Comprehensive directed trust and trust protector statutes

Wyoming has comprehensive directed trust and trust protector statutes enacted in 2011 and expanded since. The statutes allow complete separation of trustee duties with explicit liability protection. Trust protectors can be granted broad powers including modification of trust terms, removal of trustees, and change of situs.

Important Considerations

  • ⚠️Trust protector is a fiduciary under Wyoming law and owes duties to beneficiaries

Statutory References

Verified: 2025-12-21

Decanting Flexibility

How easily can trust terms be modified through decanting? Broader decanting powers allow for greater flexibility to adapt to changing circumstances without court involvement.
95/100
Broad decanting powers

Wyoming's decanting statute (enacted 2013) provides broad powers. Trustees with absolute discretion can decant to new trusts with virtually any modified terms. Even trustees with limited discretion can change administrative and governance provisions. No court approval required.

Conditions & Requirements

  • Notice to qualified beneficiaries required (typically 60 days)
  • Cannot reduce fixed income interests without consent

Important Considerations

  • ⚠️HEMS standard trusts have more limited decanting options
  • ⚠️Cannot eliminate tax-qualified provisions

Statutory References

W.S. § 4-10-816Decanting power
Verified: 2025-12-21

The Honest Take on Wyoming

What It Does Best

1,000-year duration, no state income tax, low fees, and surprisingly good trust laws. It's the budget-friendly alternative to South Dakota.

The Downside

Fewer established trust companies and less case law. If something goes wrong, you're in uncharted territory.

Use WY If...

  • You want SD-like benefits at lower cost
  • Your trust is $1-5M and fees matter
  • You value simplicity and no state income tax

Skip WY If...

  • Asset protection is critical (SD/NV have more precedent)
  • You need a blue-chip trust company
  • Your situation is complex enough to need established case law

Bottom Line

Wyoming is the sleeper pick. Most advisors recommend SD because it's safe, but Wyoming is catching up fast. Great choice if you're cost-conscious.

General Caveats for Wyoming

Requires a qualified Wyoming trustee (individual resident or Wyoming trust company).
Applies when: Always
Wyoming's low population density means fewer local trust companies than Delaware or South Dakota.
Applies when: Seeking institutional trustee options
Wyoming offers strong LLC protections (charging order only) that complement dynasty trust planning.
Applies when: Trust will hold LLC or business interests
Wyoming has no franchise tax or corporate income tax, beneficial for private trust companies.
Applies when: Considering private trust company structure

Compare Wyoming vs. Other States

Official Sources

Disclaimer: This page provides general information about Wyoming trust laws for educational purposes only. It does not constitute legal, tax, or financial advice. Laws change frequently; verify all information with current statutes and consult qualified professionals before making any decisions.