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Delaware Trust Services
Understanding the Delaware Advantage
Delaware is the first state for tax-efficient, flexible trust administration. Situating your trust in Delaware can have the following benefits:
Special Situs Jurisdiction
Trusts sitused in Delaware have the benefit of access to a sophisticated body of trust law, regularly updated to the most modern trust planning options. In addition, Delaware offers the unique Chancery Court, a court of equity with over 200 years of precedent to rely upon in safeguarding trust law.
Multigenerational Planning
Assets placed in a Delaware dynasty trust can be used to care for your family for multiple generations without the on-going burden of gift, estate or generation-skipping transfer taxes.
Flexibility and Control
Directed trusts provide an ability to retain control over, personally or through trusted advisors, specific aspects of trust administration. This can include discretion over decisions relating to investments, distributions, tax matters, and other key decisions. This can be particularly useful when funding your trust with unique or complex assets.
Tax Planning
Delaware does not impose state income tax on income or capital gains accumulated within a trust for non-Delaware beneficiaries. This presents significant opportunities for income tax savings and planning.
Investment Flexibility
Delaware's modified prudent investment rule allows the overall success of the trust investments to be considered as a whole, allowing for concentrated positions. It further allows a trustee to consider the beneficiaries' personal values when determining appropriate trust investments.
Confidentiality & Legacy Planning
Delay of notification to beneficiaries of the trust through the inclusion of a designated representative is permitted. This allows you to determine the right amount of information at the right time for trust beneficiaries. Alternatively, trusts can be established with a goal of educating beneficiaries in preparation for the inheritance of wealth. In addition, Delaware expressly provides for letters of wishes to help settlors more clearly express their intent to trustees.
The Delaware Trust Mission
We're a team of trust professionals focused on building deep relationships with our clients to help them achieve their family goals through solution-oriented trust administration.
Trust Services to Meet Your Needs
Mechanics Bank Trust Company of Delaware values our fiduciary duty as a trustee and welcomes the opportunity to introduce you to our experienced team and provide you with access to specialized Delaware trust planning. Serving the needs of both directed trusts and managed trusts, we are able to offer experienced in-house investment management or engage with your trusted Registered Investment Advisor (RIA) to manage the Trust's assets. Your trust can hold financial assets such as cash or investment securities, as well as non-financial assets such as closely held entities. We can serve as your trustee or agent for the following types of Delaware trusts:
- Dynasty trusts
- Directed trusts
- Silent trusts
- Well-being trusts
- Inter vivos (living) trusts
- Total return trusts
- Generation-skipping trusts
- Asset Protection trusts
- Revocable trusts
- Income-savings trusts
- Purpose trusts
Planning Insights
Visit our Planning Insights hub for exclusive trust insights from our experienced team.
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