No Other State Matches the Delaware Advantage in Trust Law

This article reprint was published in the November 11, 2019 issue of Delaware Business Times. Delaware is known as a 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 a leading 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. 

Note that a few states, including Delaware, have special trust advantages that may not be available under the laws of your state of residence, including asset protection trusts and directed trusts. If you are interested in learning more about the trust advantages under Delaware law, please let us know, and we will put you in contact with our affiliate, Wilmington Trust Company.

Please see important disclosures at the end of the article.