As a premier trust jurisdiction, Delaware offers many advantages for individuals, families, and businesses. Delaware's Court of Chancery has more than 250 years of history developing legal precedent in trust and corporate law, and holds a preeminent position in developing this body of law in the United States.
Some of Delaware's leading advantages include:
- Directed Trusts. Delaware law facilitates the use of third-party investment advisors through its "directed trustee" statute.
- Tax Advantages. 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.
- Grantor Provisions. Delaware law permits a grantor to restrict beneficiary access to information under certain circumstances.
- Delaware Asset Protection Trusts. Delaware law offers an attractive alternative to offshore accounts for protection from creditors.
- Spendthrift Trusts. Delaware's "spendthrift" trust statute provides significant protection from creditors' claims.
- Confidentiality. Delaware courts are sensitive to a grantor's right to confidentiality and do not require court filings.
- Dynasty Trusts. Delaware permits the creation of perpetual "dynasty" trusts that may be exempt from certain federal transfer taxes.
- Total Return Trusts. Delaware was the first state to enact a law that permits the use of investment opportunities that align the interests of the income and remainder beneficiaries.
Wilmington Trust can help clients throughout the U.S. utilize Delaware's trust and tax savings benefits.