Wyoming is the best state to establish a PTC because of our focus
on ease of administration and formation. No required capital
contributions combined with avoiding oversight by the State
Division of Banking help us lead the nation. Other states have
minimum contribution requirements of from $200,000 to $500,000 on
formation and requiring compliance with operating regulations.
Wyoming is thus extremely attractive.
Wyoming also provides particular advantages for investment
advisors. These include zero state taxes on trust assets, private
trust companies, zero regulation of investment advisors, and
settlor-friendly trust laws. Also provided are asset protection
benefits for self-settled spendthrift trusts and single member
LLCs. These advantages reflect a conscious effort on the Wyoming
legislature’s part to make Wyoming a pre-eminent asset protection
Spendthrift trusts prevent creditors from pursuing assets inside
the trust. In desirable jurisdictions, e.g. Wyoming, this
protection extends to self- settled trusts. Regardless of whether
your trust contains a spendthrift clause, Wyoming allows
discretionary distributions and protects them until a distribution
is actually made. Wyoming law is clear in this respect and
creditors may not attach such distributions.
Wyoming recently amended its laws to clarify that a charging order
is the sole remedy for creditors pursuing LLC assets, regardless
of whether there’s only one member. Creditors are not allowed lien
or foreclosure rights when pursuing Wyoming Limited Liability
Companies. Unlike other states, a creditor may only satisfy
judgements via an LLC through obtaining the right to
This remedy is unattractive since an LLC is under no obligation to
make distributions, thus delaying (indefinitely) any settlement.
Further, Wyoming’s does not allow foreclosing LLC interests while
reducing the risk an LLC’s veil may be pierced. This further
reduces the risk that claims against the private trust company may
be settled using the personal assets of a membebr. PTCss may be
used in conjunction with other tools to enhance asset protection.