How we evaluate and compare dynasty trust jurisdictions
Every trust jurisdiction comparison we found online was written by a trust company or law firm in that state. Shocking no one, South Dakota firms say South Dakota is best. Nevada firms say Nevada is best. Delaware firms... you get it.
We wanted something that would give you an honest answer based on your situation, not based on who's paying for the content. So we built it.
The uncomfortable truth: after running hundreds of scenarios through our own tool, South Dakota wins about 80% of the time. But that other 20% matters—if you have international beneficiaries, specific asset protection needs, or unusual trust structures, jurisdiction choice actually changes outcomes. That's who we built this for.
We evaluate 6 trust jurisdictions across 5 criteria. Each gets a score from 0-100 based on what the state statutes actually say—not what their marketing materials claim.
When you use our comparison tool, your answers adjust how much each criterion matters. If you care most about asset protection, we weight that heavily. If tax savings are your priority, we shift accordingly. Simple.
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.
Perpetual = 100, 1000 years = 95, 365 years = 85, 360 years = 84, Modified RAP = 50, Standard RAP (90 years) = 30
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.
No state income tax = 100, No tax with conditions (e.g., no in-state beneficiaries) = 85, Low tax rate = 60, Standard tax = 30
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.
Based on: DAPT statute strength, statute of limitations (shorter = better), exception creditors (fewer = better), trustee requirements, judicial precedent
Does the state have robust statutes for directed trusts (separating investment and distribution duties) and trust protectors? These structures provide flexibility and professional management.
Comprehensive directed trust + trust protector statutes = 100, Good statutes = 80, Basic statutes = 60, No specific statutes = 30
How easily can trust terms be modified through decanting? Broader decanting powers allow for greater flexibility to adapt to changing circumstances without court involvement.
Broad decanting powers, minimal court involvement = 100, Good powers with some limitations = 80, Moderate powers = 60, Limited or no decanting statute = 30
When you use our comparison tool, your answers adjust how much weight each criterion receives in the final calculation:
The flexibility importance you select also affects weighting. "Critical" flexibility further boosts decanting-related scores, while "Low" flexibility boosts dynasty duration.
All data is sourced from official state statutes:
We cite specific statute numbers for every claim. Each data point includes a "last verified" date indicating when we confirmed the information against current statutes.
We maintain our data through:
View our changelog for a history of updates.
The federal estate and gift tax exemption is currently $13.61 million per person (2024). Under current law, this exemption will drop to approximately $7 million on January 1, 2026, unless Congress extends it.
This potential change affects the urgency of dynasty trust planning. Individuals with estates above the reduced exemption may want to establish and fund dynasty trusts before the sunset to maximize wealth transfer.
We include this context in our results because timing is an important consideration for trust planning, separate from jurisdiction selection.
"Perpetual" sounds impressive, but no one knows if it works. The oldest dynasty trust with perpetual provisions is maybe 30 years old. Whether these actually last 500+ years without courts intervening remains untested. For practical purposes, anything over 360 years is probably functionally equivalent.
Asset protection is the most oversold feature in trust marketing. The reality: if you're sued and a court finds you transferred assets to defraud creditors, most protections fail—regardless of what the state statute says. These provisions work best against hypothetical future creditors, not existing ones. Plan accordingly.
Delaware has the best trust attorneys in the country and the most sophisticated case law. But for a typical dynasty trust? It's overkill. You're paying for legal infrastructure you probably won't need. Plus, the income tax treatment has trapped more than a few unsuspecting grantors when a beneficiary moved there.
Nobody talks about this, but institutional trustee fees range from $15,000 to $50,000+ annually. If your trust is under $3 million, fees will eat 0.5-1.5% of your assets every year before investment returns. For smaller trusts, a lower-cost jurisdiction like Wyoming might make more sense than the "best" jurisdiction on paper.
Most attorneys recommend the jurisdiction they know best. This isn't corruption—it's practical. An attorney who's drafted 200 South Dakota trusts will serve you better than one learning Nevada on your dime. If your attorney has strong preferences, listen to them. Expertise matters more than marginal statutory differences.
We don't cover:
This tool narrows your options. It does not—and cannot—replace professional advice from people who understand your complete situation.
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