I draft Wyoming Qualified Spendthrift Trusts (self-settled domestic asset protection trusts) for founders, professionals, and investors who need real shelter from future personal-creditor claims. This comprehensive guide explains exactly how the Wyoming statute works, what the qualified transfer requires, how to fund the trust, international signing options, and how I personally handle every detail from drafting through trustee onboarding.
Wyoming state income tax on trust earnings (no tax)
Wyoming voidable-transfer look-back for pre-existing creditors
Federal bankruptcy clawback (§548(e)) for actual-intent transfers
Privacy—trust not publicly recorded unless you choose to file a certificate
A Wyoming Qualified Spendthrift Trust (QST) is a self-settled domestic asset protection trust (DAPT) with Wyoming governing law, a Wyoming trustee (individual resident or trust company/private family trust company), spendthrift clause, and discretionary distributions. When you fund it properly before trouble starts and stay solvent, future personal creditors cannot force distributions.
Physicians, agency owners, crypto/real-estate investors, pre-liquidity founders with lumpy balance sheets, and professionals in high-liability fields. Most already use Wyoming holding LLCs and want another layer sitting above the LLC stack for personal-creditor protection.
It does not erase current lawsuits, unpaid child support, alimony obligations, or fraudulent transfers. Wyoming's statute protects you from future claimants—not existing liabilities. I will turn away anyone trying to hide an existing liability or dodge a current creditor.
I screen each matter for pending litigation, tax liens, judgments, or insolvency. If anything is active, we pause and bring litigation counsel or a CPA into the conversation before a single document is drafted. Asset protection trusts must be funded when you are solvent and not facing imminent claims.
Wyoming DAPT statute (Wyo. Stat. §§4-10-5XX) requires:
You remain a discretionary beneficiary, but an independent Distribution Director (or the trustee) approves distributions in writing. You cannot demand distributions. I normally structure age-based releases for remainder beneficiaries (e.g., at age 25 or 30, customizable to your goals).
Default build is a grantor trust: every dollar of trust income flows through to your personal 1040, and you keep filing a single return—simple and clean. I can convert to non-grantor for specific SALT planning or treaty situations, but that adds CPA coordination and complexity.
That's why funding timing, solvency documentation, and lawful-source attestations matter so much. I document everything to counter future challenges.
Wyoming law carves out certain claims that can still reach trust assets:
Even with a Wyoming trust, I recommend maintaining adequate personal liability insurance (umbrella policy of $1M or more). Many trustees require this as a condition of serving. It shows good faith and reduces the risk of exception-creditor challenges.
You can retain certain powers without destroying the asset protection:
You can retain the right to veto any proposed distribution (including distributions to yourself). This gives you a defensive control without triggering domination concerns.
Within Wyoming safe harbors, you may retain investment advisory powers—directing how trust assets are invested—without being deemed to "control" the trust for creditor purposes.
You can retain a limited annual withdrawal right (e.g., up to 5% of trust value per year, subject to notice/timing and liquidity). This preserves some access while maintaining protection.
Funding a Wyoming asset protection trust is a multi-step process that requires careful documentation. The centerpiece is the Qualified Transfer Affidavit (QTA)—a statutory sworn statement you sign attesting to solvency, absence of fraud, lawful source of funds, and other critical facts.
First, I work with you to map every asset you want to transfer:
For each asset, I prepare the correct assignment or transfer document.
You sign a Wyoming Qualified Transfer Affidavit attesting to:
If needed, I'll attach supporting proof: balance sheet, insurance declaration, CPA solvency letter.
Once the QTA is signed, I execute the transfers:
Some trustees require that you maintain a personal umbrella liability policy (e.g., $1M or equal to the fair market value of qualified transfers, whichever is less). This is not a Wyoming statutory requirement, but it's a conservative asset-protection practice.
Why trustees want this: It shows good faith, demonstrates you're not "judgment-proof," and reduces the risk of tort-claimant exception challenges.
My approach: I draft the insurance representation as optional/flexible. If you don't carry umbrella coverage, I can adjust the language, tailor it to actual coverage you maintain, or remove it if the trustee agrees. Let me know what coverage you have, and I'll structure it accordingly.
For each funding, I prepare:
Many of my clients live abroad or travel frequently. Wyoming trusts and Qualified Transfer Affidavits require notarization, but you have four flexible execution options depending on where you are when you sign.
Sign in Wyoming or your home state before a traditional notary public. I supply the acknowledgment block and any jurat language the trustee or county clerk expects. This is the simplest path if you're in the United States.
If you live abroad, visit a U.S. Embassy or Consulate. U.S. consular officers can notarize your trust and QTA exactly as a U.S. notary would. No apostille required. I'll adjust the notary block to show the city/country where you sign (e.g., "U.S. Consulate, Madrid, Spain").
I prefer this route for international clients because it's straightforward and universally accepted by U.S. recorders and trustees.
Sign before a civil-law notary in your country (e.g., Spain, Germany, France) and obtain an apostille under the Hague Convention. The apostille certifies the notary's authority so U.S. entities accept the document.
I supply a dual-jurisdiction acknowledgment block: "State/Province of ___, Country of ___." After notarization, you (or the notary) obtain the apostille from the competent authority in your country (e.g., Colegio Notarial in Spain).
Timeline: Apostille can take 1-4 weeks depending on the country. Factor this into your schedule.
When permitted, I coordinate with a U.S. RON platform (e.g., Notarize, Proof). You appear on a video call, verify your identity, and sign electronically. The notary is commissioned in a U.S. state that authorizes RON (Wyoming and many other states allow this).
Acceptance: Most trustees and recorders accept RON notarizations. I confirm with your trustee in advance. This is the fastest option for international clients who want to avoid embassy visits.
The standard notary acknowledgment reads "State of ___, County of ___." For international signings, I modify it to:
"State/Commonwealth/Province of __________, Country of __________"
I add a parenthetical note: "Acknowledgment may be taken before a U.S. notary, a U.S. consular officer, or a foreign notary with apostille under the Hague Convention."
You (or the notary) fill in the actual location when signing. The notary completes their certificate, and if using a foreign notary, you obtain the apostille afterward.
Path 1 (U.S. Notary):
Path 2 (U.S. Consular):
Path 3 (Local Notary + Apostille):
Path 4 (Remote Online Notarization):
Clients often ask: "Should I use a Wyoming trust or a Wyoming LLC?" The answer: both. They protect different things and work best together.
| Wyoming Asset Protection Trust | Wyoming LLC | |
|---|---|---|
| Primary Shield | Blocks personal creditors from forcing distributions out of the trust | Blocks asset-level liabilities from hitting you personally (reverse veil) |
| Control | Trustee/Distribution Director has discretion; you retain veto rights or limited powers | You (or manager) manage operations; easy to show banks and business partners |
| Privacy | Not recorded publicly (unless I record a certificate of trust for real estate or banking) | Articles of Organization filed with Wyoming Secretary of State; can use registered agent for privacy |
| Tax Treatment | Grantor trust (default): income flows to your 1040; Non-grantor: separate trust return | Disregarded entity (SMLLC) or partnership/corporation tax treatment |
| Best Use | Owning passive assets, holding company interests, receiving profits/distributions, estate planning | Operating companies, property-specific SPVs, brokerage accounts, active business |
| Liability Exposure | Low—trust doesn't conduct business or create operational liabilities | Moderate—LLC may have operational liabilities (tenants, contracts, torts) |
Settlor (You) → Wyoming Qualified Spendthrift Trust → Wyoming Holding LLC (manager-managed by trustee) → Asset LLCs (real estate SPVs, trading LLCs, intellectual property holding companies)
How it works:
Benefits of this stack:
Client: Owns 5 rental properties in different states, $3M total value, plus $500K in a brokerage account.
Structure I build:
Result: If a tenant sues the CA Rental LLC, only that LLC's assets (the CA property) are at risk. The other 4 properties, the brokerage account, and the Holding LLC are insulated. If the client gets sued personally (e.g., car accident), the creditor can't force distributions from the trust.
I bill all work at $240 per hour in six-minute increments. The packages below show typical attorney time for each deliverable. Most trusts fall within these ranges; if your matter is more complex (multiple trustees, non-grantor tax planning, cross-border issues), I'll give you a revised estimate upfront.
$360–$720 (~1.5–3 hours)
If you already have a trust and need help with a new funding round: Qualified Transfer Affidavit, assignments, trustee receipts, updated schedules.
$240–$480 (~1–2 hours)
Consular or apostille-ready notary instructions, dual-jurisdiction acknowledgment language, RON coordination, country-specific guidance.
$240–$360 (~1–1.5 hours)
Liaison with Wyoming individual trustee or corporate/PTC trustee; minutes/resolutions; acceptance of trusteeship; trustee education.
$400+ per LLC
Wyoming Holding LLC + Asset LLCs aligned to the trust structure; articles, operating agreements, manager/consent docs, bank letters. (Re-uses patterns from my Wyoming LLC service.)
$240–$480 (~1–2 hours)
Change beneficiaries, update distribution standards, add/remove protectors, adjust age triggers. Includes updated Certificate of Trust if needed.
$240/hour
Annual reviews, new asset funding, distribution approval memos, successor trustee events, tax coordination with your CPA, compliance. Billed in 6-minute increments.
I track time in six-minute increments (0.1 hour = $24). At the end of each month, I send an itemized invoice showing date, task description, time, and amount. You pay by check, wire, or Zelle. For package deals, I invoice 50% upfront and 50% on delivery of drafts.
Estimates are good-faith projections. If your matter is straightforward and takes less time, you pay less. If it's more complex (e.g., non-grantor tax planning, multi-jurisdictional assets, contested creditor issues), I'll revise the estimate and get your approval before proceeding.
Yes. Wyoming law allows you to remain a discretionary beneficiary. An independent trustee or Distribution Director decides if and when to distribute. I also give you veto power so no one can force money out against your wishes. You cannot demand distributions (that would destroy the protection), but you can receive them at the trustee's discretion.
No. You can live anywhere in the world. The trust simply needs a Wyoming trustee and Wyoming situs (recordkeeping and administration). I routinely work with clients in California, New York, Texas, and internationally (Europe, Asia, Latin America). The key is that the trust is administered in Wyoming, not you.
Wyoming's statute exempts certain claims, including child support and spousal support. The trust won't shield those obligations—they always take priority. If you pay support, I disclose it in the Qualified Transfer Affidavit. The trust is designed to protect you from future creditors (lawsuits, business debts), not family support obligations.
The trust protects you from personal creditors—people suing you individually cannot force distributions out of the trust. An LLC protects individual assets from operational liabilities—if the LLC gets sued, your personal assets are safe. I usually stack them together: Trust owns Holding LLC, Holding LLC owns Asset LLCs. That way you get both personal-creditor protection and asset-level shields.
Absolutely. I have clients in Spain, Germany, UK, Singapore, and elsewhere. Execution logistics (apostille vs. consular notarization) are the main consideration. I coordinate with your CPA or tax advisor to ensure U.S. tax reporting (Form 3520, etc.) is handled correctly. Non-U.S. persons may also need to consider tax treaties and reporting in their home country.
If the funding was proper, yes—usually. The Bankruptcy Code §548(e) allows a bankruptcy trustee to claw back DAPT transfers made within 10 years if there was actual intent to hinder, delay, or defraud creditors. I document solvency, lawful purpose, and absence of fraud to counter that risk. If you fund when solvent, with no imminent claims, and wait out the look-back periods, the trust should withstand bankruptcy challenges.
Grantor trust (default): All trust income is reported on your personal 1040. You pay the income tax; the trust doesn't file a separate return. Simpler and cleaner for most clients. Non-grantor trust: The trust files its own return (Form 1041) and pays tax at trust rates (which are higher). Used for specific SALT planning, irrevocable life insurance trusts, or treaty situations. I can draft either way; grantor is the norm for asset protection trusts.
The trust is irrevocable (can't be revoked entirely), but I build in amendment powers for non-material changes: updating beneficiaries, adjusting distribution ages, adding/removing protectors, changing administrative provisions. Material changes that affect the asset-protection or tax status require more care. I draft amendments for $240–$480 depending on complexity.
You have three main options: (1) Individual Wyoming resident—a trusted friend or advisor who lives in WY; (2) Wyoming trust company—a licensed corporate trustee; (3) Wyoming Private Family Trust Company (PTC)—you form your own WY entity to act as trustee (requires more setup but gives you more control). I can introduce you to trustees or help you form a PTC if that fits your goals.
No problem. The trust remains governed by Wyoming law and administered in Wyoming regardless of where you live. That's one of the benefits—you're not tied to Wyoming residency. Just keep your trustee informed of your current address for distributions and communications.
Yes, but I usually structure it differently for liability reasons. Instead of the trust owning the property directly, I create a Wyoming Holding LLC (owned by the trust), and the Holding LLC owns state-specific Asset LLCs (e.g., "California Rental Property LLC"). Each Asset LLC holds one property. This way, if a tenant sues, the liability stays in that LLC and doesn't reach the trust or other properties.
Drafting the trust takes 1-2 weeks. Funding (QTA, assignments, trustee onboarding) takes another 2-4 weeks depending on asset complexity and notarization logistics. If you're signing internationally (apostille route), add 2-4 weeks for apostille processing. Total timeline: 4-8 weeks from intake to fully funded trust. I can expedite if you have urgent deadlines.
Annual review (I recommend scheduling a call each year to review assets, distributions, and any life changes). Tax reporting if non-grantor (Form 1041). Updating the asset schedule when you add new assets. Trustee fees (if using a corporate trustee; varies by trustee). Optional: periodic solvency updates and insurance verification. I offer ongoing counsel at $240/hr for these tasks.
Yes. I build in remainder beneficiary provisions (e.g., on your death, 60% to your son, 20% to your daughter, 20% to your spouse—customizable). I can structure age-based releases (e.g., your son gets control at age 25) or keep assets in continuing trust for asset protection and tax planning. The trust combines asset protection during your life with estate planning for after.
No direct conversion. A revocable living trust offers no asset protection (you control it fully, so creditors can reach it). To get protection, I draft a new irrevocable Wyoming QST and you transfer assets from your revocable trust to the new trust via Qualified Transfer. Your revocable trust can remain in place for other assets or be wound down—depends on your overall plan.
I usually respond within one business day. Everything you send stays confidential under attorney-client privilege once we begin the engagement.
I respond within one business day. Email is the best way to send documents, background materials, or detailed questions.
Book a 30-minute Zoom or phone call to discuss your situation:
Sergei Tokmakov, Esq.
[Your office address]
[City, State ZIP]
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