Side-by-side comparison of dynasty trust laws
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Get Personalized Results →| Criteria | Alaska | Wyoming |
|---|---|---|
Dynasty Duration How long can a trust last in this jurisdiction? States that have abolished the Rule Against Perpetui... | 95 1,000 years | 95 1,000 years |
State Income Tax Does the state impose income tax on trust income? States with no income tax or favorable trust taxat... | 100 No state income tax | 100 No state income tax |
Asset Protection How strong are the state's Domestic Asset Protection Trust (DAPT) laws? Key factors include statute ... | 88 First US DAPT state (1997) with 4-year statute of limitations | 90 Strong DAPT with 2-year statute of limitations Higher |
Directed Trust & Trust Protector Does the state have robust statutes for directed trusts (separating investment and distribution duti... | 92 Comprehensive directed trust and trust protector statutes | 100 Comprehensive directed trust and trust protector statutes Higher |
Decanting Flexibility How easily can trust terms be modified through decanting? Broader decanting powers allow for greater... | 90 Broad decanting powers with notice requirement | 95 Broad decanting powers Higher |
Alaska allows trusts to exist for up to 1,000 years, measured from the date of trust creation. This applies to both real and personal property held in trust. While not perpetual, 1,000 years is effectively dynastic for any planning purpose.
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.
Alaska has no state income tax. The state relies on oil revenues and other sources rather than income tax. Trust income is not taxed at the state level, and Alaska residents receive annual Permanent Fund Dividends.
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.
Alaska enacted the first US Domestic Asset Protection Trust statute in 1997. The statute of limitations for fraudulent transfer claims is 4 years from transfer or 1 year from discovery, whichever is later. This is longer than some competing jurisdictions.
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.
Alaska has comprehensive directed trust and trust protector statutes. The statutes allow separation of trustee powers among multiple parties with explicit liability protection. Trust protectors can be granted broad powers including modification of trust terms, removal of trustees, and change of situs.
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.
Alaska's decanting statute (enacted 2014) allows trustees with discretionary distribution authority to distribute to new trusts with modified terms. No court approval is required. Decanting can modify administrative and dispositive provisions, merge or divide trusts, and extend trust terms.
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.
Wyoming is the better choice for most people. Similar laws, but Wyoming has lower costs and is more accessible. Alaska's isolation is a real practical issue.
You have Alaska connections, assets there, or value being the first DAPT state.
You want similar benefits with lower costs, easier access, and no geographic complications.
Wyoming has quietly become a better version of what Alaska used to offer. Unless you have Alaska-specific reasons, Wyoming makes more sense.