Common trust structures owning LLCs
- Wyoming Dynasty Trust: no rule against perpetuities, can last indefinitely. Useful for multi-generational asset transfer.
- Wyoming DAPT (Domestic Asset Protection Trust): self-settled spendthrift trust with 4-year statute of limitations on creditor attacks.
- Revocable living trust: simpler, used for probate avoidance. Less asset protection.
- Foreign trust: trusts in offshore jurisdictions can own US LLCs. Heavy IRS scrutiny for US beneficiaries.
- Charitable remainder trust: tax-advantaged structure for charitable goals.
Benefits
- Estate planning: avoid probate, structured succession
- Asset protection layering: creditors must reach trust before LLC
- Privacy: trust as legal owner
- Tax planning: grantor vs non-grantor trust flexibility
- Multi-generational wealth transfer (Dynasty Trust)
Considerations
- Trust setup costs $2,000 to $10,000+ (trust attorney fees)
- Ongoing trust administration fees
- Tax implications (grantor trust files on grantor's return; non-grantor trust files separately)
- Bank may require disclosure of trust beneficiaries during KYC
- Consult a US estate planning attorney