WealthManagement_Trusts_WA2_ChoosingATrustSitus_16x9 (SPEECH) [MUSIC PLAYING] (DESCRIPTION) Text, Wealth Management, U.S. Bank. Investment products and services are not a deposit, not F.D.I.C insured, may lose value, not bank guaranteed, not insured by any federal government agency. Text, trust how-to's. (SPEECH) When setting up an irrevocable trust, there is one important element that can be easily overlooked, the location your trust will be established. This is referred to as a trust situs. (DESCRIPTION) A map of the Midwest appears in the upper right-hand corner. A dark blue map pin indicates the state of Illinois, which turns gray. Text, trust situs. (SPEECH) While it may seem obvious to set up a trust in your home state, different states have different trust laws. The state that will have jurisdiction over your trust should be one that benefits your unique financial situation and the goals of your trust. (DESCRIPTION) Text, choosing a trust situs. (SPEECH) Here are a few factors to consider when choosing your trust situs. (DESCRIPTION) An icon of a courthouse style building appears. A legal document covers part of it. Text, 1. Perpetuities. (SPEECH) The first is the concept of perpetuities, which is a common law that prevents a trust from continuing indefinitely. Several states have repealed this law, meaning in these locations, you can legally setup a perpetual trust. Because a perpetual trust has no end date, once the assets are gifted into the trust, they are not subject to a state or gift tax. (DESCRIPTION) The map of the Midwest appears on the left, with the blue map pin indicating Illinois, which turns teal. A tax form rises in the center of the screen. Text, 2. State income tax. (SPEECH) On the subject of taxes, you might also consider how state income tax will vary based on where you establish your trust. For example, Alaska, Nevada, and South Dakota don't currently issue state income tax on trusts. And some states don't issue income or capital gains taxes on trusts for beneficiaries who live out of state. (DESCRIPTION) A sheet of paper appears along with the words 3. Creditor protection. (SPEECH) Another factor to consider is creditor protection. Different states treat the subject in different ways, but two states in particular, Delaware and South Dakota, don't force you to make distributions to creditors from your trust. This may be appealing if you feel you'll need to protect the assets within your trust from creditors, lawsuits, or court orders. (DESCRIPTION) A sheet of paper appears along with the words 4. Privacy. (SPEECH) And if privacy is a particular concern for you, you might want to consider one of the states that limit communications to beneficiaries and third parties. This can be helpful if you want to set up what's called a quiet trust, where your trustee is not required to notify your beneficiaries of the trust contents. (DESCRIPTION) A megaphone icon appears with a red X over it. (SPEECH) These are only some of the factors that may vary based on your trust situs. So as you can see, location is just as important as all the other provisions you consider when setting up a trust. Talk with an estate planning professional or attorney to determine which state will be the best situs for you. (DESCRIPTION) Text, Wealth Management, U.S. Bank. U.S. bank.com slash trusts dash estates. Investment products and services are not a deposit, not F.D.I.C insured, may lose value, not bank guaranteed, not insured by any federal government agency. Text, U.S. Wealth Management - U.S. Bank is a marketing logo for U.S. Bank. U.S. Bank and its representatives do not provide tax or legal advice. Your tax and financial situation is unique. You should consult your tax and or legal advisor for advice and information concerning your particular situation. The information provided represents the opinions of U. S. Bank. This is not intended to be a forecast or guarantee of future results. Copyright 2019, U.S. Bank.