Every resident or nonresident of the State who accepts election or appointment or serves as a trustee of a statutory trust shall, by such acceptance or service, be deemed thereby to have consented to the appointment of the Delaware trustee or registered agent of such statutory trust required by § 3807 of this title (or …
Is there a trustee associated with the business?
A trust is a structure where a trustee carries out the business on behalf of the trust’s members (or beneficiaries). A trust is not a separate legal entity. A trustee may be an individual or a company. The trustee is legally liable for the debts of the trust and may use its assets to meet those debts.
Why have a Delaware trust?
Benefits of having a trust in Delaware include tax advantages, creditor protection, flexible distribution rules, and others. Delaware’s innovative approach to trusts helps ensure that Delaware will remain as the premier home for new or existing trusts.
What is the difference between a corporate trustee and an individual trustee?
An individual trustee is simply a person who manages a trust. What is a corporate trustee? A corporate trustee is a company that acts as trustee of a trust.
Does a Delaware trust need a Delaware trustee?
The DST Act does require that the trust have a Delaware resident trustee, but business decisions and management of the trust may be (and in the context of a structured finance transaction, typically are) delegated to out of state co-trustees and managers.
Who owns a statutory trust?
Statutory trust means an unincorporated association which (i) is created by a governing instrument under which property is or will be held, managed, administered, controlled, invested, reinvested and/or operated, or business or professional activities for profit are carried on or will be carried on, by a trustee or …
Are trust interests assignable?
Usually, a trust prohibits beneficiaries from assigning their interest in the trust before distribution. Unlike assignments, the person disclaiming their interest cannot say who receives the disclaimed interest. A disclaimer is not a gift by the person disclaiming.
How long can a trust last in Delaware?
110 years
Under Delaware law, a trust holding personal property may last forever. Under Delaware law, a trust holding real property may last no more than 110 years. The 110-year limitation can easily be avoided by transferring the real property to an entity, such as a limited liability company.
Do you have to be a Delaware resident to form a statutory trust?
At least one trustee must be a resident of Delaware, which can be satisfied by naming a Delaware trust company or by forming a Delaware corporation to act as the trustee (See 12 §3807). There is no Franchise Tax and no Delaware income tax on statutory trusts formed in Delaware.
Who are the beneficial owners of a Delaware Trust?
Under the Delaware Act, the rights, obligations and liabilities of the trustees and the beneficial owners of the trust can be varied to suit investors’ needs. The Delaware Act also allows the beneficial owners or even third parties to control the actions of the trustees or other persons authorized to manage the trust.
Are there restrictions on the location of a trust agreement?
There is no restriction as to the specific location in which the trust agreement must be kept, and no specific format or phraseology that must be taken into account. In fact, the drafters possess complete authority to devise the relationship of the trustee and the beneficial owners however they desire.
What are the powers of a trust trustee?
Trustees may have very broad powers or very limited powers, per the trust agreement, and they may delegate their duties and authority to officers, committees, agents or others named in the trust agreement (See 12 §3806).
