Opportunities for Wealth Preservation and Planning for Business Entities, Individuals and Trusts Having a Situs in the State of Wyoming
Christopher M. Reimer Long Reimer Winegar Beppler LLP
1. A leading trade publication, Trusts and Estates, noted Wyoming as among the best jurisdictions to locate a trust or limited liability company.
– Daniel G. Worthington & Mark Merric, Which Situs is Best?, TR. & EST., Jan. 1, 2010, updated; Jan, 2012
2. 2nd Lowest Overall Tax Burden.
– http://www.taxfoundation.org/research/show/27181.html
3. 3rd best in the Tax Foundation’s State Business Tax Climate Index
– http://www.taxfoundation.org/research/topic/68.html
4. 4th best tax system for small business and entrepreneurship
– Small Business & Entrepreneurship Council
http://www.sbecouncil.org/news/display.cfm?ID=4316
The Wyoming Advantage
Low state tax burden
– No individual, corporate, or trust income tax
– No gift tax
– No tax on out-of-state retirement income
– No tax on mineral ownership or intangibles
– Low property tax
– Wyoming Constitution art. 15 § 18 makes future income tax unlikely
Expansion of the Rule Against Perpetuities
Strong asset protection laws
Favorable business entity laws, including innovative LLC statutes
Modern trust laws
The Wyoming LLC Advantage
Wyoming was first state to authorize LLCs in 1978
Remains competitive with new 2010 LLC Act
Privacy: number and names of members and managers, amount and nature of capital contributions, etc.
Flexible operating agreements based on contract law
Sole charging order remedy
See Dale W. Cottam, Thomas N. Long, Scott W. Meier, Timothy O. Beppler & Whitney M. Agopian, The 2010 Wyoming Limited Liability Company Act, 11 WYO. L. REV. 49 (2011).
Advantages of Wyoming Trusts
Modified Uniform Trust Code (W.S § 4-10-101 et seq.)
Near Perpetual Trusts
Non-real property interests held in trusts opting out of Rule Against Perpetuities can last for 1,000 years outside federal transfer tax regime (W.S. § 34-1-139)
Wyoming Constitution prohibits outright repeal of Rule Against Perpetuities (Wyo. Const. art. 1, § 30)
No Tax on Income or Capital Gains
Efficient, responsive, and friendly legislature and courts
Privacy: No mandatory trust registration