What are the Advantages of Delaware Law?

    Delaware has long been regarded as a situs of choice for personal trusts due to its favorable tax and trust laws.

    Delaware does not impose an income tax on a trust’s accumulated income and capital gains, provided the beneficiaries do not reside within the state. Delaware recognizes perpetual or “dynasty trusts,” which can be set up to protect assets from transfer taxes for generations to come.

    Delaware takes a progressive view of the roles and responsibilities associated with a trust, and this provides clients with significant flexibility. For example, the trust may appoint a “distribution advisor” or “investment advisor” in the trust document with the authority to direct distributions or the investment of trust assets, respectively. This allows for the appointment of an “administrative trustee” in Delaware (to access the benefits of the state law) while appointing one or more separate advisors with who you are familiar and trust that may be located outside of the state. The investment advisor may be an individual, a professional manager or depending on your goals, yourself. Therefore, you can keep your current investment advisor.

    The Delaware Court of Chancery has a national reputation for expertise in fiduciary matters and has exclusive jurisdiction over Delaware Asset Protection Trusts under the Act.

    Delaware has a well-established body of trust law and a history of trust innovation that recognizes the desire many families have for flexibility, privacy and tax efficiency in managing their wealth through trusts. These features can be incorporated into a Delaware Asset Protection Trust, allowing you to access the extensive benefits of Delaware.