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It is commonly believeu by most Ameiicans that anyone establishing a living tiust (oi any
othei type of tiust) foi theii peisonal estate planning neeus shoulu always uo so unuei the
laws of the state wheie they cuiiently live. But, like so many common beliefs, nothing coulu be
fuithei fiom the tiuth. In fact, it may often be that
the bouy of law goveining tiusts in the state
wheie the tiust cieatoi lives will fiustiate oi even
be contiaiy to the peisonal goals anu objectives
piesciibeu in his estate plan by not allowing the
tiustee to auministei the plan as intenueu.
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The auvent of the computei age anu Inteinet
technology has foievei changeu so many
inuustiies anu now impact viitually eveiy aiea of
oui lives. Befoie then, veiy few inquiieu into the
logistical meaning anu benefits of establishing an
estate plan in uiffeient state than wheie one lives. But establishing tiusts in "tiust fiienuly"
states by !"#$!%$&#'#( #*"&# +*('#!*& is now a common occuiience, anu foi many goou ieasons.
This new uecision-making paiauigm is similai to the logic that has been commonly useu by
infoimeu coipoiate legal counsel foi uecaues when choosing in which state to incoipoiate.
Coipoiate counsel of laige coipoiations aie expecteu to peifoim caieful uue uiligence foi
ueteimining which state(s) is best suiteu to foimulate a coipoiation foi auministiative anu
iisk ieuuction puiposes. It's no coinciuence then that appioximately 6u% of the Foitune Suu
companies iegistei theii business bylaws anu aiticles of incoipoiation in Belawaie.
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uone aie the uays wheie tiust cieatois hau few options but to the follow the naiiow (often
misinfoimeu) path of auvice offeieu by a local attoiney in a iestiicteu anu "colonizeu" few-
options enviionment. The unchallengeu assumption was that local is always bettei. The uigital
age has changeu all of that now. It's veiy easy to biowse inteinet seaich engines foi most any
kinu of infoimation uesiieu - incluuing estate planning anu the laws goveining tiusts in
vaiious states.
Theie aie convenient anu poweiful means available to enu-useis who wish to take auvantage
of the beneficial options available in setting an estate plan in a foieign (not of uomicile) state.
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Intei-netwoiking collaboiation tools enable electionic uata management, electionic signatuie
(ESIuN) technology, uigital coiiesponuence & seivice mouules, anu the like, foi connecting to
skilleu seivice pioviueis, legal counsel, anu softwaie facilitatois who can help get the estate
planning job uone iight. When all is cooiuinateu piopeily, the enu-usei, estate planning client
enus up with a fully implementeu, piofessional-giaue estate plan, situseu (assumeuly) in a
tiust-fiienuly juiisuiction, anu all at an affoiuable piice.
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When establishing a tiust in a non-uomicile juiisuiction, the tiust cieatoi must have eithei a
natuial peison oi a coipoiate tiustee seive as the tiustee of his tiust (oi as an alteinate, co-
tiustee stanuby) who is locateu in the state wheie his tiust is to be situseu. ueneially, the
benefits available to someone establishing a tiust in anothei state is most optimally iealizeu
thiough the seivices of a competent coipoiate tiustee. A iegisteieu coipoiate tiustee is helu
to a high fiuuciaiy stanuaiu, familiai with the laws goveining tiusts in the state of opeiation,
anu is auministiatively equippeu to uo the job iight.
Theie aie inueeu a numbei of auvantages to having a coipoiate tiustee, especially one
opeiating unuei Nevaua's favoiable tiust laws, which is oui iecommenuation. Piopeily
foimulateu templates can establish that if a coipoiate tiustee is nameu in the tiust uocument,
then the state situs of the coipoiate tiustee will be ueemeu as the chosen situs of the tiust. Foi
moie uetaileu infoimation on Nevaua Coipoiate Tiustee benefits, see ",(-'.' /0#"&(. 1*"&#
2!34'56 7%%080'#0!5" (below).
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! Nevaua has veiy favoiable tiust laws incluuing piovisions that iecognize continueu
involvement of Biiecteu Auvisoiy seivices (even aftei the giantoi's passing).
! Auult chiluien aie usually selecteu as successoi tiustees to caiiy out final uistiibution
objectives; a coipoiate tiustee (even as a stanuby tiustee) can help assuie that these
objectives aie fulfilleu anu, among othei things, pievent family "issues" fiom inteifeiing
with uistiibution objectives.
! Ceitain clients have seveial assets they woulu like manageu aftei theii passing foi a
vaiiety of ieasons; the STCcoipoiate tiustee aiiangement allows foi the client's
licenseu Auvisoi to continue on in the managing of those assets.
! Nevaua law iecognizeu self-cieatoi asset piotection tiusts (Bomestic Asset Piotection
Tiusts); clients can cieate sophisticateu asset piotection tiusts unuei Nevaua law with
extenueu peipetuity that can be manageu by the client's Auvisoi.
! With Coipoiate Tiustee applications, clients with qualifieu plans can be assuieu that
theii IRA "Conuuit Tiust stietch options" be piopeily auministeieu anu enfoiceu, anu
that theii tiusteu auvisoi continue to manage those assets foi income anuoi giowth
objectives.
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The State of Nevaua is notable foi tiust cieatois in light of Nevada Revised Statutes (NRS) >
Chapter 163 / Trusts. Theie aie many benefits available to iesiuents anu non-iesiuents alike
who establish tiusts unuei Nevaua's fiienuly, "pio-tiust" bouy of law:
No State Income Tax. Nevada allows for trusts of resident and non-resident creators sitused in
Nevada to be exempt from (NV) state income tax. Distributable net income retained, rather
than distributed outright to an income beneficiary, will be added to the corpus of the trust
without the imposition of a state income tax liability regardless of the creator's state of
domicile. (NOTE: this exempt rule applies to living trusts of non-resident creators only after
the non-resident creator's decease where the creator was a resident of a state that imposes an
income tax.)
Nevaua Legislatively Recognizes Inuepenuent Auvisois. Nevaua is one of only a few
juiisuictions who have couifieu "uiiecteu tiust" statutes. Applieu "uiiecteu tiust" law
iecognizes the authoiity of a client-appointeu auvisoi to the tiustee (i.e. a Tiust
Investment Auvisoi |TIAj) who can uiiect the geneial investment-uecision-making
activities conceining a tiust's assets. That means that a client's own financial auvisoi
may continue to manage the client's assets foi investment puiposes insiue the tiust even
aftei the client's uecease, unimpeueu by (Nevaua) state law.
Nevaua Recognizes Tiust Piotectois. Nevaua is one of only a few juiisuictions who have
legislatively iecognizeu the poweiauthoiity of a "tiust piotectoi". Tiust piotectois can
be gianteu bioau-baseu authoiity, seconu only to the client-cieatoi, to entiiely iemove
any tiustee without cause, incluuing the initially appointeu coipoiate tiustee anuoi the
TIA, eithei uuiing oi aftei the client's uecease.
Nevaua Recognizes Practical Administrative Procedures. Nevada recognizes (a) realistic/flexible
trust administration procedures, (b) established prudent (man) rules governing trusts, (c)
judicial precedent favorable to trust administration, (d) the need and determination to maintain
a favorable environment for trust management activity, (e) the denial of any rights to
pretermitted heirs (those born or adopted after the establishment of the trust) unless otherwise
expressly stated in the trust, and (f) the doctrine of multi-jurisdictional trust administration,
applied when necessary.
Legislative Adoption of Domestic Asset Protection Trusts Law. Nevada recently enacted law
recognizing the Nevada Asset Protection Trust (NAPT) also known as Nevadas "Self-
Settled Spendthrift Trust which qualifies the creator as a discretionary beneficiary of a self-
settled, irrevocable trust that can EXCLUDE the entire value of the trust from being in the
creator's estate for transfer tax purposes and INSULATE the corpus from creators creditors
in a civil judgment claim.
Long Life Dynasty-Formulated Trusts. Nevada has significantly extended the duration period
that a trust may exist and be formally recognized under state law. Patriarch/Matriarchs
wanting to create multigenerational, asset-protected dynasty trusts may establish such a trust
in Nevada with express mandates that the family wealth be held IN TRUST and administered
under the trusts specific terms for as long as 365 years (after the creators decease).
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User-Friendly Investment Standards. Nevada has enacted standardized trust investment laws
under Nevada Revised Statutes (NRS), Chapter 163. Among other benefits, this code allows
for trusts to be invested and administered by the TIA in a more uniform manner. That
promotes the rules that have been modernized for today's investment standards for the benefit
of all concerned parties. Chapter 163 code provides for:
A trust's entire investment portfolio to be considered when determining the prudence of
an individual investment (not just a singular investment).
A client-appointed TIA to not be held liable for individual investment losses, so long as
the investment, at the time of acquisition, is consistent with the overall portfolio
objectives of the account.
Diversification as a required fiduciary investment protocol where no category or type
of investment is deemed inherently imprudent. Instead, suitability to the trust account's
(client) purposes and beneficiaries' needs is considered the determinant.

Selecting Nevada as the Trust Situs by a Non-Resident
Designating a non-resident situs, such as Nevada, as having applied jurisdiction over a trust
created by a creator who is not a citizen of that designated state can be accomplished by using
historically accepted protocol. The Restatement (Second) of Conflicts of Laws 268-270 (1971)
states that a court will uphold a creator's selection of jurisdiction to govern a trust as long as the
trust is valid under the law of the state selected (even though the laws of the creator's domicile
may not recognize the trust as valid).
Nevada's version of the Uniform Code rules provides that the local law of the state
selected by the transferor/creator in the governing instrument/trust controls its meaning
and legal effect, unless the application of that law is contrary to Nevada public policy.
Clearly, Nevada legislatures have recognized the freedom of any creator to choose
Nevada law to apply in the governing trust instrument.
Nevada is a forerunner in enacting uniform laws promulgated by the Uniform Law
Commission (ULC) (formerly the National Conference of Commissioners on Uniform
State Laws) and have legislatively adopted the recommended versions of the ULC with
few changes; codified uniform law applications help promote a trust-friendly
environment.
In addition to having the non-resident creator identify Nevada as the jurisdictional situs
of choice in the trust, at least one identifiable trustee named in the governing instrument
should be domiciled in Nevada. This general requirement can be easily satisfied by the
appointment of a Nevada "administrative trustee", which services can be provided by
STC, to act in conjunction with the non-resident trustee.
Another recommended but simple action that should be taken to verify the establishment
of Nevada jurisdiction of a trust is to open a bank or trust account such as with STC
located in Nevada to hold in the trust.

S
Integrated Trust Systems
"#$%&% '()*+#&
,-*+) ./01%23 455(6(%)(/2
Gary A. Loftsgard, CFP

A "tiust company" is a foimal entity oiganizeu anu chaiteieu unuei feueial anuoi state
banking laws, to peifoim the fiuuciaiy uuties of tiusts anu agencies. They aie noimally owneu
as (i) a coipoiation, oi (ii) an inuepenuent paitneiship, oi (iii) a bank. When piopeily applieu,
tiust company seivices situseu in favoiable juiisuictions can offei seveial benefits foi families
establishing estate plans.
'*00() ,-*+) ./01%23 7',.8 of Nevaua - an inuepenuent seivice pioviuei - has agieeu to
offei theii seivices to clients of the ITS' Intei-Netwoiking Seivice Piotocol (INSP) platfoim in
conjunction with the uynamics of the INSP. STC pioviues iegisteieu inuepenuent, coipoiate
tiustee seivices foi all types of client tiust neeus anu pioviues much flexibility anu piotection
in establishing estate plans unuei Nevaua's favoiable tiust laws.
STC is noimally appointeu as a "uiiecteu-auministiative tiustee" wheie the client, oi the
client's investment auvisoi, uiiects the investment activities of the tiust assets. STC will
auuitionally accept appointment not only as an oiiginal tiustee but also eithei as a "piimaiy
successoi" tiustee oi an "alteinate successoi" tiustee ueteimineu by the client's choice. STC
can also seive as a "co-tiustee" with a family-membei successoi tiustee. STC's tiustee fees
will commence only at the time that STC assumes the uuties of tiustee ielateu seivices.
STC can offei, as an inuepenuent coipoiate tiustee chaiteieu in Nevaua, coipoiate tiustee
seivice benefits to any client choosing STC'S base of seivices foi immeuiate anuoi futuie use
#$#2 )9/*:9 )9# ;6(#2)<;-#%)/- 0%3 2/) -#+(&# (2 "#$%&%. STC's seivice benefits incluue,
but aie not limiteu to:
9:4(*0(5+( ; +!3480'5+( in woiking with applicable legal iequiiements;
<(80'=080#6 ; '-'08'=080#6 that avoius costly inteiiuptions;
>=?(+#0-0#6 ; 034'*#0'80#6 in caiiying out a client's intentions;
2"&#!.0'8 &(*-0+(& foi IRAs to auministei "see-thiough" conuuit tiusts;
@!*3'8 *(+!*. A((405B foi piopei tax anu tiust accounting pioceuuies; anu,
C!5B(-0#6 that is essentially guaianteeu to exist past the lifetime of a family tiustee
even foi the applications of geneiation-skipping uynasty tiusts.