“A private trust company is an entity that can provide numerous generational wealth planning benefits to ultra-high net worth families.  However, a private trust company is not for every ultra-high net worth family.  In that regard, this newsletter is an introductory guide to private trust companies.  It is intended to aid practitioners in helping their ultra-high net worth clients assess whether a private trust company is the right fit for them.”

Jim Weller provides members with commentary that’s intended aid practitioners who are looking to help their ultra-high net worth clients assess whether a private trust company is the right fit.

James P. Weller, JD, LL.M is Chief Fiduciary Officer of Greenway Family Office Services LLC (“Greenway”) in Houston.  Greenway provides an array of administrative and financial reporting services to private trust companies, individual trustees, and family entities.  Greenway also has an office in Las Vegas where it assists Nevada Family Trust Companies in establishing the necessary situs within Nevada.  Jim has written estate, trust, and tax planning articles for several professional publications including the ACTEC Journal, Leimberg Information Services, Inc., the Journal of Practical Estate Planning, and the Journal of Financial Planning.  He has also presented several webinars sponsored by Leimberg Information Services, Inc. on Private Trust Companies, Qualified Opportunity Funds, and The Corporate Transparency Act.  His book titled “Tax-Smart Wealth Planning” was published in 2006.  Jim has over 30 years of experience in the trust, estate, and tax planning including the management of trust departments in Tennessee and Arizona, and he is a member of the State Bar of Michigan.

Here is his commentary:

EXECUTIVE SUMMARY:

A private trust company is an entity that can provide numerous generational wealth planning benefits to ultra-high net worth families.  However, a private trust company is not for every ultra-high net worth family.  In that regard, this newsletter is an introductory guide to private trust companies.  It is intended to aid practitioners in helping their ultra-high net worth clients assess whether a private trust company is the right fit for them.

FACTS:

Introduction to Private Trust Companies:

A private trust company is generally either a limited liability company or a corporation formed and authorized under state law to act as fiduciary for a single family. Private trust companies are prohibited from transacting business with the general public.  As will be discussed later in the newsletter, certain states permit exceptions to the single-family limitation.

Family members are defined by the applicable state law by the degree of kinship to a Designated Relative. A Designated Relative is typically a matriarch or patriarch of a family.  A Designated Relative can be a deceased person.

Private trust companies are generally owned by a family trust or entity.  Other potential ownership options in today’s modern legislative environment are special purpose trusts and statutory foundations.  Wyoming and New Hampshire are two favorable private trust states that permit statutory foundations.[i] 

In certain states such as Nevada, New Hampshire, and Florida, private trust companies are referred to as family trust companies.  Consequently, throughout this newsletter, reference will be made to private trust companies and family trust companies depending on the state involved.

Types of Private Trust Companies:

There are three types of private trust companies:  Licensed or Chartered, Unlicensed, and Exempt.  A Licensed or Chartered Private Trust Company applies for and receives a trust license or trust charter from the applicable state banking authority.  The license or charter typically must be renewed annually.  An unlicensed private trust company operates without either a trust license or trust charter, and it is not subject to regulation.  Nevada, Wyoming, Florida, and Ohio permit unlicensed private trust companies.  An exempt trust company applies for and receives certain exemptions from applicable banking regulations.  Texas, New Hampshire, and Tennessee are examples of states that allow exempt trust companies.  Typically, an exempt trust company is required to file an annual certification with the banking commission that it is maintaining the conditions and limitations of the exemptions granted.

Reasons for Forming a Private Trust Company:

1.    More Active Voice in the Management of Wealth inside Irrevocable Trusts.  Family members can be on the Board of Directors and the Investment Committee of a private trust company.  This enables the family to have an active voice in the management of assets inside irrevocable trusts.

2.    Elimination of Trustee Designation and Succession Issues.  Banks and individuals are often named as trustee.  However, individuals can die or become incapacitated.  In addition, banks can merge and undergo major changes.  A private trust company will always be there to serve as trustee as long as the family so desires.

3.    Greater Recognition of a Family’s Special Relationship with Heavily Concentrated Assets.  It is quite common for ultra-high net worth families to have a special relationship with heavily concentrated assets.  Corporate trustees tend to struggle with holding heavily concentrated assets which often leads to a predisposition to sell the assets.  In contrast, a private trust company is less risk adverse and more in touch with a family’s special relationship with such assets.

4.    Less Regulatory Oversight.  Licensed private trust companies are subject to examination by the state banking commission.  However, bank regulators realize that there is no public interest to protect with a private trust company, and as a result, they have adopted more flexible examination processes for licensed private trust companies.

5.    Leverage Favorable State Trust and Tax Laws.  A private trust company can be formed not only in a state with modern and favorable trust laws, but with no state income tax.

6.    Vehicle for Domestication of Foreign Trusts.  IRC §643(i)(1) treats the use of property in a foreign trust by a U.S. Grantor, U.S. Beneficiary, or U.S. Related Person as a distribution of the property for income tax purposes to the extent of the fair market value of the use of the property.  Based on case law, the use of trust property in a U.S. trust by a beneficiary does not have income tax consequences.[ii]  Domesticating a foreign trust to a private trust company in the U.S. can eliminate the above income tax issues along with some onerous reporting requirements for foreign trusts with U.S. Persons.

7.    Limited Personal Liability.  As a general rule, the Board of Directors of a private trust company has limited personal liability.

8.    Avoidance of SEC Registration.  Under Section 202(a)(2) of the Investment Advisers Act of 1940 (the “Act”), the definition of a bank includes a trust company that is supervised and examined by state or federal authorities having supervision over banks or savings associations.  Section 202(a)(11) of the Act excludes banks from the definition of an investment adviser.  Consequently, licensed private trust companies are exempt from SEC Registration.

9.    Likelihood that Licensed Private Trust Companies Avoid Reporting under The Corporate Transparency Act.  23 entities are exempt from the reporting requirements of The Corporate Transparency Act.  Banks are one of the exempt entities. Because licensed private trust companies meet the definition of a bank under the Investment Advisers Act of 1940 as noted above, they arguably are exempt from the reporting requirements under The Corporate Transparency Act.

10.                  Enhancement of Investment Opportunities.  Private Trust Companies can form investment partnerships that focus on a particular class of assets such as real estate.  This can provide smaller trusts with access to a class of assets that they normally might not have access to.

11.                  Training Ground for Future Generations of the Family.  A private trust company affords future generations of a family the opportunity to learn about the proper stewardship of family wealth.  This can be accomplished by placing family members on the Board of Directors and/or the Investment Committee.

Potential Drawbacks to Consider Before Forming a Licensed Private Trust Company:

1.    Minimum Capital Requirements.  For licensed private trust companies, the required minimum capital varies state to state.  For instance, in Nevada, the minimum capital requirement is $300,000.[iii]  In Texas, the minimum capital requirement is $2,000,000, but the banking commissioner on application may reduce the amount of the minimum capital in a manner consistent with protecting the safety and soundness of the trust company.[iv]

2.    Potential Risk of Loss of Privacy.  State banking commissioners require that certain information be submitted on individuals such as directors and officers as part of the license application process.  The risk of loss of privacy is minimal because banking commissioners are very conscious of the need for privacy and scrupulously protect such information.

3.    Distance from Family Home Base.  Families can reside in a state other than the state where the private trust company is located. Families must factor in the distance, time, and difficulty in traveling to the state where the private trust company will be located.

4.    Possible Additional Regulatory Oversight.  An unsatisfactory examination of a private trust company could lead to additional scrutiny by the banking commissioner.  Also, complaints raised by family members to the banking commissioner can cause additional regulatory oversight.

5.    Requirement of a Resident Director.  Families must be cognizant that some states such as Florida may require that the private trust company have a resident director.[v]  In that regard, it is quite common for ultra-high net worth families who create private trust companies to desire to surround themselves with trusted advisors who they have known for years and are familiar with the family’s values.  As a result, there might be a reluctance to bring an unknown person into the governance structure of the private trust company.

Reasons for Forming an Unlicensed Private Trust Company:

There are basically two main reasons for forming an unlicensed private trust company.  First, the formation process is much quicker than that for a licensed private trust company because of the absence of the license application process.  Secondly, some families may find the absence of regulation appealing.

Potential Drawbacks of an Unlicensed Private Trust Company:

1.    Lack of Regulatory Oversight.  Without a watchful regulatory eye to oversee the operation of an unlicensed private trust company, there is the potential risk of non-adherence to fiduciary standards and practices.  It behooves unlicensed private trust companies to operate as if they were licensed and subject to regulatory supervision.

2.    Possible SEC Registration.  Private trust companies without a trust license or charter do not qualify for the bank exclusion from SEC Registration.  One possible avenue to avoid SEC Registration is for an unlicensed private trust company to qualify for the SEC’s Family Office Exclusion.  Under SEC Rule 202(a)(11)(G)-1, an entity such as an unlicensed private trust company can qualify for the Family Office Exclusion from SEC Registration if it meets the following requirements:  (a) it provides investment advice about securities only to family clients which is broadly defined to include some non-family members such as key employees, non-profit organizations, charitable foundations, and charitable trusts; (b) it is wholly owned by family clients and is exclusively controlled directly or indirectly by family members and/or family entities; and (c) it does not hold itself out to the public as an investment adviser.

3.    Lack of a Minimum Capital Requirement.  Arguably, minimum capital goes to the very heart of the viability and credibility of an entity such as a private trust company.  As a sound practice, it is advisable for unlicensed private trust companies to maintain the minimum capital requirement for a licensed private trust company under applicable state law.

4.    Possible Limit on Ability to Engage in Interstate Activity.  The ability to act as a fiduciary in other states can be extremely important when family members reside in states other than where the private trust company is located.  In that regard, Texas not only requires reciprocity of the home state of the out-of-state corporate fiduciary, but the out-of-state fiduciary must file a copy of its charter with the Texas Secretary of State.[vi]  In other words, an unlicensed non-resident private trust company cannot act as a fiduciary in Texas for family members who reside in Texas.

5.    Corporate Transparency Act Compliance.  Unlike a licensed private trust company which is arguably exempt from the reporting requirements under The Corporate Transparency Act, an unlicensed private trust company will have to comply with the reporting requirements of the Act.

Steps in Forming a Licensed Private Trust Company:

Some of the common application requirements of state banking commissions include the following:

1.    Application and Application Fee.  The application fees vary state to state.  For example, the application fee is $3,000 in Nevada and $10,000 in Florida.[vii]

2.    Submission of Organizational Documents such as Corporate Bylaws or LLC Operating Agreement.

3.    Provide Biographical Information, Financial Statements, and Fingerprinting of Directors, Officers, and Principal Owners.

4.    Submit a Business Plan and Pro Forma Projections.

5.    Request Statutory Exemptions if Applying in States such as Texas, New Hampshire, and Tennessee.

6.    Provide a Copy of the Instate Premises Lease and Fidelity Bond if Required.

7.    Statement Naming the Designated Relative.

Steps in Forming an Unlicensed Private Trust Company

As noted above, it is quicker and simpler to form an unlicensed private company as opposed to a licensed private trust company.  The steps typically include: (1) formation of the entity under state law which usually can be done on-line; (2) obtaining state and local business licenses which also generally can be done on-line; (3) holding an organizational meeting to elect directors and officers, designate a registered agent, approve 3^rd party service providers, and select a local bank.  Depending on applicable state law, there can be additional requirements.  For instance, in Nevada, an unlicensed family trust company must inform the Financial Institutions Division of the name of the Designated Relative by certified mail.[viii]

Governance Structure:  Board of Directors, Distribution Committee, Investment Committee, and Amendment Committee:

The duties of the Board of Directors generally consist of the following:

1.    Formation of Internal Committees and the Election of Committee Members and Officers.

2.    Management of Regulatory and Audit Matters.

3.    Initial Approval of Fiduciary Policy and Procedure Manual and Approval of Subsequent Additions and Changes.

4.    Review and Approval of Annual Trust Company Budget.

5.    Provide Beneficiaries with Annual Trust Accountings.

6.    Review and Approve Initial and Annual Administrative Reviews of Trusts and the Trust Company.

7.    Develop a Privacy Policy for Protecting Non-Public Information of the Trust Beneficiaries.

8.    Select 3^rd Party Service Providers.

9.    Annual Performance Review of 3^rd Party Service Providers.

10.  Adoption of Appropriate Insurance Programs.

11.  Annual Review of Insurance Programs.

12.  Review and Approve a Trustee Fee Schedule.

13.  Review and Set Annual Fees of Directors and Committee Members.

14.  Prepare a Schedule with Agenda Items for Board Meetings Each   Year.

15.  Annual Review of Internal Committee Activities.

The duties of the Distribution Committee include the following:

1.    Prudent Management of the Trust Company’s Fiduciary Distribution Authority.

2.    Review, Approve, Reject, or Defer Decisions on Distributions.

3.    Non-Distribution Decisions such as Beneficiary Use of Trust Assets.

IRS Notice 2008-63 contained a proposed revenue ruling that provides guidance on building firewalls in governing documents to avoid adverse tax consequences.  Based on IRS Notice 2008-63, family members serving on the Distribution Committee should be prohibited from participating in Distribution Committee activities involving any trust in which: (a) a family member or spouse is grantor or beneficiary, or (b) a beneficiary is a person to whom the family member or spouse owes a legal obligation of support.

The duties of the Investment Committee include the following:

1.    Prudent Investment of Trust Assets.

2.    Selection of 3^rd Party Investment Advisors.

3.    Monitoring Performance of 3^rd Party Investment Advisors.

4.    Initial and Annual Investment Review of Trust Assets.

5.    Establishment of an Investment Policy Statement for Each Trust for which the Trust Company has Investment Authority.

The Amendment Committee is a concept derived from IRS Notice 2008-63. The Amendment Committee has the exclusive authority to make certain changes to the governing documents of a private trust company.  In accordance with Notice 2008-63, these changes include matters involving the following: (1) the creation, function, or membership of the Distribution Committee or the Amendment Committee, (2) provisions regarding the delegation of personnel decisions to officers and managers, and (3) the prohibition against reciprocal agreements between family members.  In IRS Notice 2008-63, two of the three members of the Amendment Committee were non-family members, non-employees, and not related or subordinate to any family member as defined in IRC §672(c).

Situs Requirements for a Licensed Private Trust Company

The situs requirements for a licensed private trust company can vary state to state.  For example, under NRS 669A.140, the situs requirements for a licensed family trust company in Nevada are the following:

1.    Nevada Trust Officer.

2.    Nevada Office with original or true copies of material business records and trust accounts.

3.    Nevada Registered Agent with an Office at the Street Address of the Registered Agent in Nevada.

4.    All Applicable State and Local Business Licenses, Registrations, and Permits.

5.    Bank Account with a State or Nationally Chartered Bank with Principal Office or Branch Offices in Nevada.

It should be noted that the Nevada Family Trust Company Act makes no mention of the number of Board of Director Meetings each year and the location of those meetings.  From a perspective of solidifying situs, it is recommended that licensed and unlicensed family trust companies in Nevada hold at least two Board Meetings each year in Nevada.

Situs Requirements for an Unlicensed Private Trust Company

As with licensed private trust companies, the situs requirements for an unlicensed private trust company can vary depending on the state involved and the type of entity formed.  For example, if an unlicensed family trust company is formed in Nevada as an LLC, it must keep the following records at its principal office or the office of the registered agent: (1) current list of the full name and last known business address of each member and manager, separately identifying the members in alphabetical order and the managers, if any, in alphabetical order; (2) copy of the filed articles of organization and all amendments thereto, together with signed copies of any powers of attorney pursuant to which any record has been signed; and (3) copies of any then effective operating agreement of the company.[ix]

The Top Private Trust Company States

In this author’s opinion, the states listed below are the top private trust company states.  The following is a sampling of what makes each of these states unique:

1.    Florida.  Not only does Florida permit licensed and unlicensed family trust companies, but it also does not limit the providing of trust services to a single family in certain circumstances.  In that regard, Florida allows a licensed family trust company to have up to two designated relatives if they do not have a common ancestor within three generations.[x]  If this statutory provision is met, two families can form one licensed family trust company. 

2.    Nevada.  Like Florida, families can form either a licensed or unlicensed family trust company in Nevada.  From the perspective of a licensed family trust company, the Nevada Financial Institutions Division adopted flexible examination protocols.  In that regard, examination by the Financial Institution Division can be avoided if a licensed family trust company has an audited financial statement, and it elects to have an Independent Review Examination by a qualified firm such as a CPA firm. Because the Nevada Family Trust Company Act is silent as to the number of directors, the residency of directors, and the number and location of board meetings, there is discretion on these matters in Nevada.

3.    New Hampshire.  A family trust company in New Hampshire can change its Designated Relative once every 10 years.[xi]  This ability to re-designate a Designated Relative has the benefit of reflecting the reality of a family as it evolves and changes over time. In 2017, New Hampshire enacted The New Hampshire Foundation Act which permits statutory foundations.[xii]  This not only creates another option for ownership of a family trust company, but it also provides another form of entity for a family trust company itself.[xiii]  Also, in New Hampshire, there is no requirement that a family trust company have a director who is a resident of the state or a U.S. citizen unless required by the Banking Commissioner in consideration of the family trust company’s safety and soundness.[xiv]  Finally, New Hampshire along with South Dakota has the lowest minimum capital requirement of $200,000 for a licensed family trust company.

4.    South Dakota.  As mentioned above, South Dakota and New Hampshire have the lowest minimum capital requirement of $200,000 for licensed private trust companies.  Also, as noted earlier, many ultra-high net worth families have a special relationship with heavily concentrated assets.  South Dakota has recognized this and codified it in its statutes.  In South Dakota, a trustee need not diversify if the trust instrument or court order allows or directs the retention of assets forming the trust corpus, and no trustee is liable to a beneficiary to the extent that the trustee acted in reliance on the provisions of the trust agreement or court order.[xv]

5.    Tennessee.  Tennessee allows a private trust company to request in writing to be exempt from any provision of the Banking Act and the rules thereof.[xvi]  The reference to “any” implies that in certain situations a private trust company in Tennessee may in essence be unregulated. In addition, a private trust company can have more than one Designated Ancestor, referred to in most states as a Designated Relative, if: (a) the Designated Ancestors are married or have been married, and (b) if more than such first two Designated Ancestors are designated, each such Designated Ancestor must be or have been a spouse of either of the first two Designated Ancestors.[xvii]  Consequently if these conditions are met, a private trust company is not limited to a single family.

6.    Wyoming.  Wyoming permits private family trust companies. A private family trust company is not chartered, and it is not subject to regulation by the Wyoming Division of Banking.[xviii]  In July 2019, Wyoming passed House bill 0030.  Under House Bill 0300, a chartered family trust company can now serve two unrelated families.  Finally, with the enactment of its Wyoming Statutory Foundation Act, Wyoming like New Hampshire provides another alternative for the structuring of a private trust company.

Prudent Practices in Operating a Private Trust Company

For families who are considering a private trust company, it is critical that they understand upfront what it takes to prudently operate a private trust company.  Some of the best prudent practices for operating a private trust company include the following:

1.    Number and Location of Board Meetings.  One must look to applicable state law for the required number of board meetings each year and the location of those meetings.  In South Dakota, the Board shall hold at least four regular meetings each year, at least one of which shall be held during each calendar quarter.[xix] In many instances, there will be no mention in applicable state law as to the number and location of board meetings.  In light of that, it is a sound business practice to strongly consider holding quarterly board meetings each year with a least two board meetings being held in the state where the trust company is located.  Once again, holding at least two meetings in the home state of the trust company can help to enhance the trust company’s situs in that state.

2.    Annual Budget of the Trust Company.  No later than the 1^st Quarter Meeting each year, the board should review and approve an annual budget of the trust company.

3.    Oversee Internal Committees.  Typically, the board has the authority under the trust company’s governing document to form internal committees and appoint members of the committees.  As part of its oversight function, the board should assure that meetings are held on a regular basis during the year, and the board should review and acknowledge the minutes of the internal committees.  A recommended added step is to require that each internal committee submit an annual report of its activities to the board.

4.    Adherence to IRS Notice 2008-63.  To avoid adverse tax consequences, the firewalls noted above for the Distribution Committee and the Amendment Committee should be built into the trust company’s governing document.  As a recommended additional step, all members of the Distribution Committee and the Amendment Committee should be independent persons as defined in IRC §672(c).

5.    Maintenance of Required Minimum Capital.  To assure that the required minimum capital requirement is being met under applicable state law, the board should review the amount of capital of the trust company on a quarterly basis.

6.    Adopt a Statement of Principles of Trust Management.  This document lays out the guidelines by which the board will manage a private trust company.  The Statement of Principles of Trust Management should be reviewed and adopted by the board on a regular basis.  In addition, it is a good practice to provide the trust beneficiaries with a copy of the Statement of Principles of Trust Management.

7.    Adopt a Privacy Policy.  A Privacy Policy states how a private trust company will protect the non-public information of trust beneficiaries, and under what circumstance, it will release such information.  A Privacy Policy should be reviewed and adopted regularly by the board, and a copy of the Privacy Policy should be given to the trust beneficiaries.

8.    Review and Approve Initial and Annual Administrative Reviews of the Trusts under Administration.  The purpose of the initial review of new trust accounts is to assure that the accounts are set up properly for the trust company to carry out its fiduciary duties and responsibilities while the annual administrative review of trusts under administration is to assure that the trust company is properly performing its fiduciary duties and responsibilities.  The board should review each initial and annual administrative review.  Reviews without any exceptions should be formally approved by the board, and any exceptions should be documented and monitored for correction.

9.    Annual Review of 3^rd Party Service Providers.  The most common 3^rd party service providers are companies providing administrative support services, financial reporting services, legal services, tax preparation services, and investment advisory services.  The annual review by the board focuses on the quality of the services being provided, and whether the service provider should be retained.

10.  Adopt a Bank Secrecy Act Policy.  The purpose of a Bank Secrecy Act Policy is to establish guidelines for compliance with the Bank Secrecy Act, the USA Patriots Act, and The Office of Foreign Assets Control (OFAC).  Such a policy assures that the necessary controls are in place to deter and detect money laundering, terrorist financing, and other criminal acts and provide the requisite notices to law enforcement agencies.  Key components of a Bank Secrecy Act Policy are: (a) appointment of a Bank Secrecy Act Compliance Officer who reports to the board; (b) initial and annual training of officers and employees on the Bank Secrecy Act, the USA Patriot Act, and OFAC Compliance; and (c) submission of an annual Bank Secrecy Act Compliance Report to the board by the Compliance Officer.

11.  Adopt a Fiduciary Policy and Procedure Manual.  Some of the main topics addressed in a Fiduciary Policy and Procedure Manual include the following: (a) Acceptance of New Accounts; (b) Initial and Annual Review of Trust Accounts; (c) Account Terminations; (d) Payment of Bills, Taxes, and Other Expenses; (e) Trust Accounting; (f) Internal Controls; (g) Tax Reporting; (h) Selection and Review of 3^rd Party Service Providers; (i) Privacy of Client Information; and (j) Bank Secrecy Act Compliance.  The board should formally review and adopt a Fiduciary Policy and Procedure Manual and review and approve any additions or changes arising thereafter.

12.  Ongoing Communication with Trust Beneficiaries.  It is imperative that the board keeps the trust beneficiaries fully informed.  This could include trust beneficiaries serving on internal committees and/or the board and inviting the trust beneficiaries to at least one board meeting each year.  Naturally, providing trust beneficiaries with copies of the trust accountings as required by the applicable trust agreements and/or state law is extremely important.  When trust accounting are provided to trust beneficiaries, it is recommended that the board requests writing approval of the trust accountings by the trust beneficiaries.

COMMENT:

There is one remaining important question that should be addressed when considering the formation of a private trust company.  That is, what is the size of assets in family trusts that justifies the formation of a private trust company?  In that regard, the main source of revenue for a private trust company is trustee fees.  Consequently, it often boils down to the amount of reasonable trustee fees that can be placed on trust assets in family trusts to cover the operational costs of a private trust company.  As part of the analysis of this question, families need to be cognizant that the primary goal of a private trust company is not profitability.  However, some form of profit should be earned to enhance the very viability of a private trust company.

As a final note, for a private trust company to be successful, it requires an “all in” commitment by the family. This not only entails a strong commitment to the private trust company by current and future generations, but it also requires a willingness and desire by family members to take active roles in the operation of the private trust company.

HOPE THIS HELPS YOU HELP OTHERS MAKE A POSITIVE DIFFERENCE!

Jim Weller

CITE AS:  

LISI Estate Planning Newsletter #3156 (November 4, 2024) at http://www.leimbergservices.com. Copyright 2024 Leimberg Information Services, Inc. (LISI). Reproduction in Any Form or Forwarding to Any Person Prohibited - Without Express Permission. Our agreement with you does not allow you to use or upload content from LISI into any hardware, software, bot, or external application, including any use(s) for artificial intelligence technologies such as large language models, generative AI, machine learning or AI system. This newsletter is designed to provide accurate and authoritative information regarding the subject matter covered. It is provided with the understanding that LISI is not engaged in rendering legal, accounting, or other professional advice or services. If such advice is required, the services of a competent professional should be sought. Statements of fact or opinion are the responsibility of the authors and do not represent an opinion on the part of the officers or staff of LISI.

CITATIONS:

[i] Wy Stat. §17-30-303 (2020) and NH Rev. Stat. Chapter 564-F.

[ii] Sparrow v. Comm’r, 18 B.T.A. 1,16-17 (1929); Plant v. Comm’r, 30 B.T.A. 133, 142-43 (1934) aff’d 76 F.2d 8 (2d Cir. 1935); DuPont Testamentary Trust v. Comm’r, 66 TC 761,766-70 (1976).

[iii] NRS 669A.160. 

[iv] Tex. Fin. Code §182.008(a) and (e).

[v] Fla. Stat. §662.125(2).

[vi] Tex. Est. Code §505.003(c) and §505.004(a)(1).

[vii] NRS §669A.190(2) and Fla. Stat. §662.121.

[viii] NRS 669A.050.2.

[ix] NRS §86.241.

[x] Fla. Stat. §662.120(2).

[xi] N.H. Rev. Stat. §383-D-10-1002(b).

[xii] N.H. Rev. Stat. §564-F.

[xiii] N.H. Rev. Stat. §383-D:5-501A(a)(3).

[xiv] N.H. Rev. Stat. §383-D:8-801(a).

[xv] S.D. Codified Laws §55-5-8.

[xvi] TN Code 45-2-20001(b).

[xvii] TN Code §45-2-2001(b)(2)(B).

[xviii] WY Stat.§13-5-301)(a)(xiii).

[xix] S.D. Codified Laws §51A-6A-15.