Top 5 States for Dynasty Trusts
Dynasty trusts offer asset protection and estate and generation-tax skipping tax avoidance over many generations. Three years ago attorney Steve Oshins started a ranking system of dynasty trusts. Various tax issues and creditor protections are included and weighted to determine how each state performs in relation to another. A new addition to the chart addresses discretionary trust protection from child support and divorcing spouses. All states named in the Top 5 below provide protection from child support and divorcing spousal claims except Wyoming, which does not protect against child support claims.
TrustCounsel serves North Carolina, Florida, New York and Tennessee. Tennessee once again made the Top 5 States for Dynasty Trusts, and Florida came in tenth. Last year Alaska and Nevada tied for second place, but shifting legislation pushed Nevada slightly ahead. Wyoming and Ohio swapped spots, with Ohio dropping down off the Top 5 and Wyoming taking fifth place.
One does not need to reside in a state that permits dynasty trusts in order to take advantage of them. An asset protection attorney can advise ways of using a corporate trustee in the desired jurisdiction so that an individual may enjoy the asset protection and tax benefits provided in that state.
Here are the states with the most attractive dynasty trust regulations in 2014:
1. South Dakota