Wyoming is often called the “Switzerland of the Rocky Mountains” for asset protection, and their Statutory Trust laws are a big reason why. When you mention a “Series,” you’re looking at a very specific, powerful legal structure.
In short, a Wyoming Statutory Trust (WST) with “Series” capabilities is like a Mother Ship that can launch independent Escape Pods.
What is a “Series” Trust?
Normally, if you have five different rental properties, you’d need five separate trusts or LLCs to keep them from “infecting” each other with liability. A Series Trust allows you to create one master trust filing that holds separate “cells” or “series.”
How it Works:
- The Master Trust: The main legal entity registered with the state.
- The Series (Cells): You can designate “Series A,” “Series B,” etc., within the trust agreement.
- Internal Asset Segregation: Under Wyoming law, the debts or liabilities of “Series A” cannot be recovered from the assets of “Series B” or the Master Trust.
Key Benefits of the Wyoming Structure
Wyoming is particularly aggressive about protecting these structures. Here is what that means for you:
- Asset Partitioning: If a tenant sues “Series A” (Property 1), the assets in “Series B” (Property 2) are legally shielded from that lawsuit.
- Cost Efficiency: You only pay one set of state filing fees and maintain one “Master” entity, rather than paying for ten separate LLCs.
- Privacy: Wyoming does not require the names of the beneficiaries or owners to be listed in public records, offering a high level of anonymity.
- Flexibility: You can have different beneficiaries or different trustees for each individual series within the same trust.
Is it the same as a Series LLC?
They are cousins, but the Statutory Trust is often preferred by sophisticated investors because:
- No Franchise Tax: Unlike some states’ LLCs, Wyoming Statutory Trusts don’t have an annual franchise tax.
- Perpetual Existence: They can last indefinitely.
- Common Law Roots: Trusts are governed by a different set of legal precedents that can sometimes offer even more privacy than a standard corporation.
Important Note: To maintain these protections, you must keep separate records and bank accounts for each series. If you mix the money together, a court can “pierce the veil” and treat them as one single entity, ruining your protection.
