Learn About Trusts

A trust is a legal entity that is managed by one party (the “trustee”) for the benefit of others (one or more “beneficiaries”). Trusts serve many purposes, such as preserving family wealth, providing families with succession plans, and safeguarding assets against mismanagement.

The trustee of a trust is the legal owner of trust property and must use that trust property as instructed in the trust agreement and applicable state law. Trustees have an obligation to

manage trust property for the benefit of the beneficiaries with primary duties to invest, distribute, and administer the trust in compliance with applicable laws.

A directed trust is a type of trust where administrative responsibilities are divided among multiple parties such as the trustee and a financial advisor.

Wyoming Trust Company does not form trusts directly. Instead, we partner with professionals to provide trust administration and estate services for clients who already have an established trust. Our role is to assist in the effective management and administration of the trust, working closely with legal or financial advisors to ensure a client’s trust is administered according to their wishes.

Wyoming was the first state to adopt the limited liability company (LLC) in 1977. Since then, the Wyoming legislature has regularly enhanced Wyoming standing as a trust and business planning situs. Wyoming’s legislature was also an early adopter of the Uniform Trust Code, single family and chartered family private trust companies, and, most recently, has approved innovative laws in the digital asset and cryptocurrency space.

While Wyoming is one of several states that has chosen not to impose a state income tax, trusts are otherwise taxed the same way as all other assets owned by a Wyoming person or entity. Income and capital gains taxes are paid at the federal level.