Questions to Ask Trust Counsel

Bring these questions to licensed professionals. Answers should be specific to your facts and documented in engagement letters and memos—not inferred from websites.

Jurisdiction & tax

• Under our residency profile, which states may tax trust income?
• How does grantor vs. non-grantor status affect annual tax compliance?
• What nexus evidence should we maintain if we select South Dakota?

Structure

• Is a dynasty duration appropriate given GST exemption and family goals?
• Should investments and distributions be directed? By whom?
• What protector powers are necessary vs. destabilizing?

Protection & risk

• What fraudulent-transfer analysis is required before funding?
• Which claims are unlikely to be blocked by spendthrift provisions?
• How do divorce and support obligations interact with beneficial interests?

Operations

• Who is the administrative trustee and what are fees?
• What is the annual calendar for reporting, tax estimates, and IPS review?
• How will successor generations be educated without oversharing?