A Trust Instrument (sometimes called a Trust Agreement or Trust Deed) is the private, internal “rulebook” for the entity. Think of it as a cross between a legal contract and a corporate handbook.
While the Certificate of Trust is a short public document filed with the Wyoming Secretary of State, the Trust Instrument is a much longer, private document that usually stays in your lawyer’s office or a secure file.
Here is what a typical Wyoming Statutory Trust (WST) instrument looks like in terms of structure and content:
1. The Opening (The “Parties”)
The document starts by identifying the players. It will look like a formal contract:
- The Settlor/Grantor: The person or company putting the assets into the trust.
- The Trustee: The person or entity managing the assets. (In Wyoming, this is often an LLC or a Private Trust Company).
- The Name: “The [Name] Statutory Trust.”
- The Effective Date.
2. Trust Purpose
This section defines what the trust is allowed to do. Unlike a family trust (which is usually for “care and maintenance”), a statutory trust instrument often has broad “business purpose” language, such as:
“The purpose of this Trust is to engage in any lawful activity for which a statutory trust may be formed under the Wyoming Statutory Trust Act, including but not limited to the acquisition, holding, and management of real property…”
3. Beneficial Interests (The “Owners”)
This is where the WST looks like a corporation. Instead of simple “beneficiaries,” it often refers to Beneficial Owners.
- It defines how “shares” or “units” of the trust are issued.
- It outlines whether these units can be sold, traded, or used as collateral.
4. Trustee Powers and Duties
This is the “job description” for the trustee. It lists exactly what they can do without asking for permission, such as:
- Opening bank accounts.
- Buying/selling real estate.
- Borrowing money or issuing debt.
- Indemnification: A critical clause stating that the trustee isn’t personally liable for trust losses unless they commit gross negligence or fraud.
5. Series Provisions (The “Secret Sauce”)
If it’s a Series WST, the instrument will have a specific section allowing the trustee to create “cells” or “sub-trusts.”
- It will state that the assets and liabilities of Series A are legally walled off from Series B.
- This allows one trust instrument to govern dozens of separate investment portfolios.
6. Distributions
The “When and How” of the money.
- Will the trust pay out monthly? Quarterly?
- Does the trustee have “discretion” (the power to decide) or is it “mandatory” (must pay at a certain time)?
7. Administrative Provisions
The “fine print” that handles the “what-ifs”:
- Succession: Who becomes trustee if the current one resigns or is incapacitated?
- Amendment: How do we change the rules later?
- Termination: What triggers the end of the trust (e.g., a specific date or the sale of all assets)?
Summary Table: Public vs. Private
| Document | Filed Publicly? | What’s inside? |
|---|---|---|
| Certificate of Trust | Yes | Trust Name, Registered Agent, Trustee Name. |
| Trust Instrument | No | Bank details, specific assets, list of owners, distribution rules. |
A quick tip: If you are looking at a “template” online, be careful. Because Wyoming Statutory Trusts are used for high-level business (like REITs or 1031 exchanges), the instruments are usually much more complex than a standard “Living Trust” you’d find at a big-box legal site.