Wyoming Living Trusts

You retain control of your assets in a Wyoming living trust.

Creating a trust allows you to arrange for transfer of property following your death without subjecting your family to the time and expense of the probate process. You set up a living trust during your lifetime and continue to have control of the property held in trust. Title 4 of the Wyoming Statutes sets the requirements and governs the administration of trusts in the state.

Requirements

The person establishing the trust, the settlor, must be mentally competent and intend to create a trust. The trust must have a definite beneficiary or be established to serve a specific purpose. A definite beneficiary is one whose identity is specified in the trust document or will be identifiable in the future. The trustee, who is responsible for the trust assets, must have duties to perform and may not be the sole beneficiary of the trust.

Creating the Trust

Wyoming allows you to create a living trust by naming someone to act as trustee during your lifetime or by declaring that you hold the identified property as trustee. The law does not require a written trust document, but an oral trust is valid only if the fact of its creation and its terms can be proved by clear and convincing evidence. Wyoming law recognizes trusts created in other jurisdictions if the settlor, trustee or any trust property is located in that jurisdiction.

Trust Purposes

In general, Wyoming requires a trust to serve its beneficiaries through a purpose that is achievable. Wyoming prohibits trusts created for unlawful purposes or purposes contrary to public policy. You may establish the trust to benefit your family members or other specific individuals, as long as its terms do not contradict the terms of your will. Wyoming also permits trusts established to provide for the care of animals that survive you or to benefit a charity or charitable activity.

Changing the Trust

Wyoming allows changes in the trust for a variety of reasons. A court may change the terms of the trust to correct mistakes of fact or law that affect the settlor's intent in establishing the trust, or to make adjustments that achieve the settlor's tax objectives. The trust may be modified to accommodate changed circumstances and may be changed or terminated if it becomes uneconomical to operate because its value has fallen below $150,000.

Creditor's Rights

During your lifetime, your creditors may make claims against the assets of your living trust. Wyoming respects your right to determine how your debts will be paid after your death, but if other sources are inadequate, your trust assets may be used to pay creditors, funeral expenses and the cost of administering the trust. Creditors must file claims within two years of your death or, if notified that the property will be distributed, within 120 days of the notification.

References

• Nolo: Make a Living Trust in Wyoming
• Wyoming Statutes: Title 4 - Trusts