Alex What are the advantages of a Delaware trust?
Benefits of having a trust in Delaware include tax advantages, creditor protection, flexible distribution rules, and others. Delaware’s innovative approach to trusts helps ensure that Delaware will remain as the premier home for new or existing trusts.
Does it matter which state you set up a trust in?
Traditionally, a trust would be set up in the trust creator’s state of residence or in the state where the key beneficiaries reside. Sometimes, the creator favored a particular trustee and that would determine the residence of the trust.
What is a Delaware resident trust?
The law defines a resident or non-resident estate and trust as follows: A resident estate means the estate of a decedent who at his death was domiciled in Delaware. The trust has more than one trustee, all of whom are individuals and one-half or more of whom are resident individuals of this State.”
What is the purpose of a Delaware statutory trust?
What Is a DST? A DST (Delaware Statutory Trust) is simply a separate legal entity created under the laws of Delaware to hold title to one or more income producing commercial properties. A DST offering can be any type of commercial property; apartments, retail space, office buildings, industrial parks, etc.
Do you have to be a Delaware resident to form a statutory trust?
At least one trustee must be a resident of Delaware, which can be satisfied by naming a Delaware trust company or by forming a Delaware corporation to act as the trustee (See 12 §3807). There is no Franchise Tax and no Delaware income tax on statutory trusts formed in Delaware.
Is the Delaware directed trust right for You?
A 2004 Delaware court case sustained the law. Consequently, the Delaware directed trust might be right for you if you want to fund your trust with stock in a family company, maintain a relationship with a money manager, or involve family members in deciding how much is distributed to your beneficiaries. 3. Your trust can be perpetual
Why do you need a Delaware spendthrift trust?
A Delaware spendthrift trust provides your beneficiaries substantial protection from creditor claims. So, if your Delaware trust contains a spendthrift clause, a beneficiary’s interest will generally be shielded in an unlimited amount.
Can a non US resident own a Delaware company?
No. Delaware’s corporate law structure does not impose restrictions on ownership or management of a Delaware company by a non-resident of the United States.
At least one trustee must be a resident of Delaware, which can be satisfied by naming a Delaware trust company or by forming a Delaware corporation to act as the trustee (See 12 §3807). There is no Franchise Tax and no Delaware income tax on statutory trusts formed in Delaware.
What are the benefits of having a trust in Delaware?
Benefits of having a trust in Delaware include tax advantages, creditor protection, flexible distribution rules, and others.
Do you have to file a Delaware tax return if you are not a resident?
You must file a non-resident tax return (form 200-02) to receive a refund of erroneously withheld Delaware income taxes if you did not live or work in the State of Delaware at any time during the taxable year.
A Delaware spendthrift trust provides your beneficiaries substantial protection from creditor claims. So, if your Delaware trust contains a spendthrift clause, a beneficiary’s interest will generally be shielded in an unlimited amount.