The facts show Delaware is a top jurisdiction for personal trusts with its flexible laws, a robust trust infrastructure, and a depth of talented professionals who serve this industry.
- While promoting their own trust services, other states at times present subjective information as fact, which can be misleading.
- Practitioners looking to find the right home for their clients’ personal trusts choose Delaware to take advantage of its favorable laws.
- Families take comfort that their Delaware trusts will function as intended and carry out their wealth management goals over multiple generations.
Delaware is the premier jurisdiction for personal trusts. The state is at the forefront of trust law innovations and the infrastructure supporting Delaware’s trust industry is unmatched, with distinguished courts, a proactive legislature, a deep pool of professional advisers and the presence of almost every major financial institution. Delaware’s status as the best trust jurisdiction has attracted a considerable amount of non-Delaware trust business to the First State, resulting in a positive impact on Delaware’s economy through fiduciary fees, job creation, tax revenues and additional economic activity in support of the trust industry.
However, because the personal trust business is a lucrative one, the competition among the states for this business is fierce and sometimes filled with misinformation. Other states claim to have the same favorable laws and similar advantages to lure prospective clients, often at lower fees. Consequently, it is important for participants in Delaware’s trust industry to be able to answer the question “Why Delaware?” when clients are deciding where to have their personal trusts administered.
This article reprint was recently published in the November 11 issue of Delaware Business Times.
Please see important disclosures at the end of the article.Download Article