Wednesday, July 2, 2008
According to Michael Neri, a director of Merrill Lynch Trust Company of Delaware, the first state to join the Union is likely to be the best state in which to establish a trust.
Why? Here is a list of possible benefits:
· No state income tax on irrevocable trusts
· No Rule Against Perpetuities (thus, dynasty trusts allowed)
· Self-settled spendthrift trusts (asset protection trusts) authorized
· Unitrusts allowed
· Enhanced confidentiality
· Non-disclosure to beneficiaries for a specified period of time
· Directed trusts allowed
See Trust in Delaware, Merrill Lynch Advisor, June 2008, at 3 and Delaware Trusts – A Tradition of Innovation.