Wyoming laws provide some of the strongest protections against invasions of privacy and creditor attachment
The State of Wyoming does not require mandatory trust or beneficial interest registration. A trust instrument can limit or eliminate the duty to keep beneficiaries informed. W.S. § 4-10-105.
In addition, trust records and court documents are automatically sealed in any judicial proceeding involving a trust. W.S. § 4-10-205.
Asset Protection Trusts: Wyoming’s Qualified Spendthrift Trust is an irrevocable self-settled asset protection trust. Any transfer of assets to such a trust must be accompanied by a qualified transfer affidavit which, among other things, includes a statement that the settlor has up to $1 million in insurance coverage.W.S. §§ 4-10-510 to -523.
Permissible settlor interests: current income; charitable remainder trust; up to 5% interest in total return trust; qualified personal residence trust; grantor retained annuity trust; grantor retained unitrust; principal distributions; reimbursement for income taxes; payment of debts, expenses, and taxes of settlor’s estate
Settlor powers: veto distributions; inter vivos or testamentary, general or limited power of appointment; power to add or remove fiduciaries; act as investment advisor
Exceptions to spendthrift protection
Fraudulent transfers under the Uniform Fraudulent Transfer Act, proven by clear and convincing evidence.
Child support in arrears of at least 30 days
Financial institution if qualified trust property is listed on an application for credit
Discretionary Trusts: Wyoming offers both traditional discretionary trusts and discretionary asset protection trusts, the latter of which protects trust assets if a trust (1) is irrevocable, (2) provides for discretionary distributions, (3) was not created through a fraudulent transfer, and (4) has at least one qualified independent trustee, with the authority to make distributions to the settlor. W.S. § 4-10-504.