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Wyoming laws provide some of the strongest protections against invasions of privacy and creditor attachment

Privacy

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

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.