No, Trustee Management Services, LLC acts as the Delaware
Trustee (a/k/a Nominee or Named Trustee) for the sole and limited purpose of
fulfilling the requirements of § 3807(a) of the Delaware Statutory Trust Act.
The Delaware Trustee does not have any of the powers or
duties of the Trustee, except as required under the Delaware Statutory Trust
Act.
No, Trustee Management Services, LLC does not provide legal advice. However, in our capacity as the Delaware Trustee, we may provide substantial strategic and advisory services that are every bit as sophisticated as legal counsel may give but such strategy and advisory advice is given strictly as a principal in our role as the Delaware Trustee.
No, you do not need an office, bank account or other specific presence in Delaware. You may manage your Trust anywhere you choose while still being a Delaware Statutory Trust in Delaware -- by virtue of Trustee Management Service’s presence in Delaware as your Delaware Trustee.
No, the first step protecting your assets is incredibly
easy.
You just choose a name for your Trust, pay your annual fee and
one-time Delaware filing fee, and Trustee Management Service will file your Certificate
of Trust with the Delaware Division of Corporations -- usually within one business
day.
The Certificate of Trust is filed in accordance with the
provisions of the Delaware Statutory Trust Act (Title 12 of the Delaware Code,
Section 3801 et seq.) and sets forth the following:
1) The name of the statutory trust and 2) The name
and business address of the Delaware Trustee.
Well, within reason, as long as 1) The Name is available in Delaware and 2) It complies with § 3814 which states that the name of each statutory trust may contain the following words: “company,” “association,” “club,” “foundation,” “fund,” “institute,” “society,” “union,” “syndicate,” “limited,” or “trust” (or abbreviations of like import) but shall not contain the word “bank,” … provided, however, that this section shall not be construed to prevent the use of the word “bank,” or any variation thereof, in a context clearly not purporting to refer to a banking business or otherwise likely to mislead the public about the nature of the business of the statutory trust…
Yes, you can set up a Series Trust which has advantages such
as better liability protection possibilities.
However, in order to take advantage of this Code provision, by law you MUST have the foresight to add the correct language to your Certificate of
Trust. Luckily, we do that in ALL our Certificates
as a matter of policy.
We thought of it already; so you can be better protected
later when you think of it!
Yes, add a “Trust Protector.”
We can help you with strategies and language, but you won’t
be sorry!
Delaware Code § 3825 states that “It is the policy of this
subchapter to give maximum effect to the principle of freedom of contract and
to the enforceability of governing instruments.”
You can create a set of operating agreement to achieve
almost any purpose you wish.
Other ideas
for Trustees or Managers that you may wish to incorporate are:
Investment Direction Adviser
Distribution Adviser
Special Holding Direction Adviser
Administrative Trustee
Asset Specific Managers, etc.
Yes, you can pay monthly after your first year is
completed.
The cost for that service is
a little bit more, but not prohibitive for the budget conscious.
Just choose that option when ordering or contact
us later.
Essentially, your services are suspended until current. Late fees or interest may also apply, and the
Delaware Trustee may resign if in arrears for an inordinate amount of
time.
Our suggestion: Make good use of your Trust and
stay current; you will be happy you did when the unexpected rain starts falling!
The DST filing fee to the State of Delaware is currently, as of
August 2018, now $500.
It is a ONE-TIME fee only.
You will need to provide valid credit card details that we then forward directly to
the State of Delaware for that charge. There is no online payment of the fee currently.
In Delaware, the Delaware Code (Title 12 Sec.
3591) allows for a "Certification of Trust" to be provided to maintain the Trust's privacy. Most states' code mimics the Delaware Code on this matter.
Instead of providing a person other than a beneficiary with
a copy of the trust instrument, a trustee may provide the person with a
certification of trust containing statements concerning, but not limited to,
the following matters:
1) The existence of the trust and the date of execution of
the trust instrument;
(2) The identity of the trustor or trustors and of the
currently acting trustee or trustees of the trust;
(3) The powers of the trustee;
(4) The revocability or irrevocability of the trust and the
identity of any person holding a power to revoke the trust;
(5) The authority of co-trustees to sign and whether all or
less than all are required to sign in order to exercise powers of the trustee;
(6) The trust’s taxpayer identification number; and
(7) The manner in which title to trust property may be
taken.
Yes, as a principal and your Delaware Trustee, we can make referrals
and discuss reasons for the use of certain attorneys for all your Trust’s legal
needs.
We have pre-existing relationships with several top attorneys
in the state regarding the drafting, use and defense of Statutory Trusts, including counsel who were instrumental
in the drafting of the law, or who literally wrote the book on the
subject!
Yes, as a business trust, DSTs are not assessed the California
Franchise Tx Board's annual $800+ franchise tax. There is even a FTB Chief Counsel ruling
confirming that this is the case!
We have a full page discussing this and potential savings for
our California residents in using the Delaware Statutory Trust instead of an LLC
for property ownership. Using the DTS as
a step towards a more robust estate and asset protection plan, the savings from
this one tax benefit can be substantial, especially with the use of a DST series
structure (provided in all Trustee Management Services original Certificates of
Trust.
For more detail, please see