The State of Your Trust: Where Should a Trust be Sited?

When approaching estate planning and, more specifically, setting up a long-term, irrevocable trust, many high net worth families both think and act locally. They provide -- often with minimal analysis or advice – for a trust that is governed by the laws of their home state and subject to taxation there, without considering alternatives that may be far more attractive.

As some states have modernized their trust laws and expanded the options available to a trust donor, knowing those options and making an informed choice about where to site a trust is more important than ever.

This article explores the following: What are the key issues? What planning goals or differences in state law might lead you to establish a trust in State Y over State X?