Qualified Spendthrift Trusts in Wyoming can shield assets from most future creditors while preserving your financial legacy.
If you're looking for one of the strongest legal tools to protect your assets from creditors, lawsuits, or unexpected financial challenges, a Qualified Spendthrift Trust (QST) in Wyoming offers exceptional benefits.
At Wyoming Trust Attorneys, we help clients establish QSTs to secure their financial legacy while maintaining control over their assets. Wyoming's favorable trust laws make this state one of the best jurisdictions for this powerful form of domestic asset protection.
What Is a Qualified Spendthrift Trust?
A Qualified Spendthrift Trust is a self-settled irrevocable trust designed to protect your assets from most future creditors while allowing you to benefit from the trust during your lifetime.
- Irrevocable: Once created, it cannot be easily changed or revoked.
- Self-settled: You are the grantor and may be a discretionary beneficiary.
- Spendthrift provisions: Creditors are restricted from reaching trust assets or forcing distributions.
Why Wyoming Is a Leading State for QSTs
- Short limitations period: Generally two years from transfer, or six months from when the transfer could reasonably have been discovered, to challenge.
- Privacy: Trust terms and beneficiaries can remain confidential.
- Tax advantages: No state income tax on trust income.
- Flexible modern law: Directed trusts, trust protectors, extended durations, and more.
Key Benefits
- Asset protection: After the statutory period, most creditors cannot access trust assets (including many lawsuit and professional-liability claims).
- Continued benefit: Wyoming allows the settlor to be a discretionary beneficiary and still receive distributions.
- Estate-plan integration: Can safeguard heirs and help manage estate-tax exposure as part of a coordinated plan.
- Privacy & confidentiality: No public registry of trust terms or beneficiaries.
How a Qualified Spendthrift Trust Works
- 1.Create the trust
Engage counsel to draft a Wyoming-compliant QST tailored to your goals.
- 2.Fund the trust
Transfer assets (e.g., real estate, investments, business interests) to the QST.
- 3.Appoint a Wyoming trustee
Use a qualified Wyoming trustee or co-trustee to administer per the instrument.
- 4.Rely on spendthrift provisions
Statutory protections limit a creditor's ability to force distributions or seize trust assets.
Who Should Consider a Wyoming QST?
- Professionals and owners in higher-liability fields.
- Individuals with significant personal or business assets.
- Families seeking lawsuit and creditor risk mitigation.
- Those who want protection while retaining discretionary access.
Important Limitations
- Existing debts and fraudulent transfers: A QST cannot cure prior liabilities or abusive transfers.
- Irrevocability: You relinquish certain control once assets are contributed.
- Trustee requirement: Must maintain a qualified Wyoming trustee or co-trustee.
Why Choose Our Firm
- Deep Wyoming expertise: We structure QSTs to maximize statutory protections.
- Tailored drafting: Aligned with your asset mix, risk profile, and estate-planning goals.
- Advisor coordination: We work with your CPA and investment team to protect and grow wealth.
Protect Your Wealth Today
A Wyoming Qualified Spendthrift Trust can give you peace of mind: shielding assets while preserving flexibility for you and your family. If you'd rather not manage the legal and compliance details yourself, we'll handle everything end-to-end so your protection is done right from day one.
Your assets are worth protecting.
We'll draft Wyoming-compliant documents that actually work at the bank and hospital.
Walk-in $25 • Online $395
FAQs
How does a Wyoming QST protect assets?
Spendthrift provisions plus Wyoming law restrict creditor access after the limitations period.
Can I be a beneficiary?
Yes. Wyoming permits the settlor as a discretionary beneficiary.
What's the limitations period?
Generally two years from the transfer date, or six months from when the transfer could reasonably have been discovered. Wyoming also offers a 120-day notice mechanism that can shorten the window for known (and, via publication, unknown) creditors to object.
Any major limits?
It won't cure prior debts or fraudulent transfers and requires a qualified Wyoming trustee.