§ 4-10-510 — Creation of qualified spendthrift trust

Wyoming § 4-10-510

• Jurisdiction: Wyoming
• Title 04: Fiduciaries
• Ch. 10: UNIFORM TRUST CODE
• Art. 5: CREDITOR'S CLAIMS; SPENDTHRIFT AND DISCRETIONARY

Text

(a) A settlor may create a qualified spendthrift trust
with a trust instrument appointing a qualified trustee for
qualified trust property, which instrument:
(i) States that the trust is a qualified spendthrift
trust under this section;
(ii) Expressly incorporates the law of this state to
govern the validity, construction and administration of the
trust;
(iii) Provides that the interest of the settlor in
the trust income or principal, or both, is held subject to a
spendthrift provision under W.S. 4-10-502 and such provision of
the trust instrument shall be deemed to be a restriction on the
transfer of the settlor's beneficial interest in the trust that
is enforceable under applicable nonbankruptcy law within the
meaning of Section 541(c)(2) of the Bankruptcy Code;
(iv) Is irrevocable, but a trust instrument may not
be deemed revocable on account of its inclusion of one (1) or
more of the following:
(A) A settlor's power to veto a distribution
from the trust;
(B) An inter vivos or testamentary general or
limited power of appointment held by the settlor;
(C) The settlor's potential or actual receipt of
income, including rights to the income retained in the trust
instrument;
(D) The settlor's potential or actual receipt of
income or principal from a charitable remainder unitrust or
charitable remainder annuity trust as those terms are defined in
Section 664 of the Internal Revenue Code;
(E) The settlor's receipt each year of a
percentage, not to exceed five percent (5%), specified in the
trust instrument, of the initial value of the trust or its value
determined from time to time pursuant to the trust instrument;
(F) The settlor's potential or actual receipt or
use of principal when a qualified trustee, including a trustee
acting at the direction of a trust advisor other than the
settlor, makes such distribution or grants such use in the
trustee's sole discretion or pursuant to an ascertainable
standard contained in the trust instrument;
(G) The settlor's right to add or remove a
trustee, trust protector or trust advisor and to appoint a new
trustee, trust protector or trust advisor, other than the
settlor;
(H) The settlor's potential or actual use of
real property held under a qualified personal residence trust
within the meaning of the term as described in Section 2702(c)
of the Internal Revenue Code;
(J) A trust protector as provided in W.S.
4-10-710 has the power to add beneficiaries to the trust who are
not the trust protector, the estate of the trust protector, the
creditors of the trust protector or the heirs of the trust
protector;
(K) The settlor's right to serve as an
investment advisor to the trust, with the powers provided in
W.S. 4-10-712(a)(iii) and (iv);
(M) The court's right to revoke a trust created
by a conservator for a ward under W.S. 3-3-607;
(N) The settlor's receipt each year of income or
principal from a grantor retained annuity trust or grantor
retained unitrust that is allowed under section 2702 of the
Internal Revenue Code;
(O) The transferor's potential or actual receipt
of income or principal to pay, in whole or in part, income taxes
due on income of the trust if the potential or actual receipt of
income or principal is pursuant to a provision in the trust
instrument that expressly provides for the payment of the taxes
and if the potential or actual receipt of income or principal
would be the result of a qualified trustee's acting:
(I) In the qualified trustee's discretion
or pursuant to a mandatory direction in the trust instrument; or
(II) At the direction of an advisor
described in subparagraph (F) of this paragraph and who is
acting in the advisor's discretion.
(P) The ability, whether pursuant to discretion,
direction or the settlor's exercise of a testamentary power of
appointment, of a qualified trustee to pay, after the death of
the transferor, all or any part of the debts of the transferor
outstanding at the time of the transferor's death, the expenses
of administering the transferor's estate, or any estate or
inheritance tax imposed on or with respect to the transferor's
estate.