Wealth Management Services

The Delaware and Wilmington Trust advantage

Headquartered in Delaware, a state widely recognized for its well-thought-out body of trust laws, Wilmington Trust Company has extensive knowledge of the state's favorable tax laws for personal trusts and business entities.

• In 2001, Wilmington Trust played a key role in making the Delaware total return unitrust possible, serving on a team with other trust industry professionals that worked for two years to support the enactment of this valuable legislation
• In 1997, the Delaware Banker’s Association, in conjunction with Wilmington Trust’s senior leadership, spearheaded the effort to enact an asset protection trust law in Delaware. Through their combined efforts, this valuable estate planning tool became available in what’s commonly considered a favorable jurisdiction for trusts
• In a collaborative effort with colleagues in the legal and financial communities, several of Wilmington Trust’s Wealth team leaders played an active role in supporting the abolishment of certain older and restrictive trust legislation, working with the Trust Act Committee of the Delaware State Bar Association Estates and Trust Section. The result was the creation of the Delaware dynasty trust, a powerful tool that may enable individuals to pass their wealth on to their heirs in perpetuity—without incurring excessive tax liabilities

Tax reform and SALT opportunities

Under the 2017 Tax Cuts and Jobs Act, income tax mitigation became more important than ever as the ability to utilize state and local tax (SALT) deductions was significantly reduced and capped at $10,000 per year. Learn how we can help your clients take advantage of other state jurisdictions to reduce or mitigate their current (or future) state and local income taxation (especially for those in high income tax states).

• DING trusts
  
  Individuals in high income tax states may consider establishing and funding Delaware incomplete nongrantor (DING) trusts. The grantor of a DING trust retains ownership of the assets for gift tax purposes while the trust owns the asset for income tax purposes. The DING trust allows the individual taxpayer to shift the income out of his or her home state into a state such as Delaware where the trust may not pay a state income tax.
  
  
• Designating a corporate successor trustee

Some trusts are better administered by an individual during his or her lifetime, such as a revocable living trust or an irrevocable life insurance trust (ILIT). However, appointing a corporate successor trustee in a tax-friendly jurisdiction—such as Delaware—can offer professional management of the trust assets at the same time state taxes may be eliminated.

Talk to one of our Wilmington Trust Company professionals to find out how a Delaware trust can help your clients.

Wilmington Trust Company operates offices in Delaware only.
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.