Popularly associated with cowboys and wide-open spaces, Wyoming has another claim to fame as the “Equality State.” In 1869, the territory of Wyoming granted women the right to vote, making it the first government in the world to grant full suffrage to women. The motivations for granting suffrage were complex and not necessarily noble. However, one of the drivers was simple pragmatism: the need to attract women to an area where men outnumbered women six to one. 

In more recent history, Wyoming has again yielded its legislative powers to attract desirable “residents,” namely trust and business interests. For decades, the state has made a concerted effort to remain on the cutting edge of trust and LLC laws, becoming the first state to legalize the Limited Liability Company (LLC) structure in 1977. 

Wyoming was also one of the first states to allow private trust companies (PTCs). Single-family, unregulated PTCs provide the benefits of a corporate trustee and enable a family to govern their legacy for generations. Today, the state offers considerable tax, privacy, asset protection, and flexibility benefits for high-net-worth families—and you do not need to be a Wyoming resident to take advantage of them. Non-residents simply need to create their entities in accordance with Wyoming law and utilize a Wyoming-based administrator for those entities to be domiciled in Wyoming.  

Here are some of the benefits that merit your consideration.  

Taxes   

According to the nonpartisan Tax Foundation, Wyoming is ranked as the #1 tax-friendly state. Wyoming has: 

  • No state income taxes. 
  • No estate (or “death”) taxes. 
  • No corporate, stock, or franchise taxes. 

In addition, there are multiple layers of defense against enacting new taxes. The state legislature has been resistant to impose new taxes in general, the state constitution would require offsets to any new taxes, and the state’s charter is fundamentally difficult to amend.  

Wyoming’s tax-friendliness means that domiciling your trust or business assets there prior to a liquidity event can be an effective method of multi-generational wealth transfer. In other words, business owners living in a state with high income or capital gains taxes can utilize Wyoming’s trust laws and statutes to transfer ownership to Wyoming, potentially reducing tax liability in the case of a large capital gain transaction, like selling a business. 

Privacy  

Wyoming prioritizes privacy considerations and has written and updated its trust and LLC laws accordingly. Wyoming’s estate laws allow them to include multiple layers of privacy in planning documents. For example, Wyoming does not require trust registration with the state or federal government. It also permits blind trusts. 

Asset Protection   

Wyoming adopted the Uniform Trust Code in 2003. Since then, the legislature and banking commission have augmented the code to enhance asset protection for Wyoming trusts and LLCs.  Here are just a few examples: 

  • Domestic Asset Protection Trusts allow settlors to preserve access and control of funds while protecting them from creditors. 
  • 1,000-year perpetuity trusts that can last for many generations. 
  • Trust decanting, trust protector, trust advisor, and special purpose entity statutes. 

These statutes provide settlors with access to assets, longevity of planning, and flexible structures. These capabilities enable families to stay on the cutting edge of trust laws when protecting the family’s assets. 

In addition, Wyoming is the only state outside of Delaware with a Chancery Court. Established in 2021, Wyoming’s Chancery Court is dedicated to resolving business and trust cases on an expedited schedule. 

Asset Control  

Independent wealth advisors and their clients can find dealing with corporate or independent trustees frustrating. Corporate trustees can be large, complex, and burdened by bureaucracy. Independent trustees may lack the expertise and focus to execute their fiduciary duties. This often leads to high-net-worth families experiencing a lack of responsiveness, independent decision-making, and control in trust administration.  

Wyoming law allows non-resident families to create and maintain private family trust companies, or PTCs, to prevent possible trustee issues.   

A PTC is owned and controlled by a single family. Its purpose is to serve as the trustee for the family’s trusts and operate with the family’s trusted advisors.   

Wyoming PTCs are unregulated, have a perpetual life span, and help streamline charitable and succession planning. Many PTCs include the family’s foundation(s) and allow younger generations to become involved with these philanthropic entities.   

Your family may be interested in a Wyoming PTC for the following reasons: 

  • Control – PTC is an independent legal entity owned and controlled by your family. 
  • Flexibility – the ability to own complex or illiquid assets (e.g., family business, mineral rights). 
  • Simplicity – all your trusts and LLCs under one roof. 
  • Scalable – ability to reduce trustee admin costs across multiple trusts. 

In summary, Wyoming’s estate and business planning laws could potentially help your family: 

  • Increase the flexibility of estate and succession planning. 
  • Maintain control, privacy, and protection of assets. 
  • Reduce costs and complexity. 
  • Retain current trusted advisor relationships. 
  • Engage the next generations. 

Cerity Partners has an established presence in Wyoming, so please contact your Cerity Partners advisor to find out if Wyoming’s trust, business, and legacy advantages could be a solution for you, your family, or your business.   

Please read important disclosures here.