In Wyoming, an Affidavit of Solvency (also known as a “Qualified Transfer Affidavit”) is the most important document for your legal defense. Under W.S. § 4-10-523, this document proves you aren’t moving money to hide it from current creditors, which is what makes the asset protection “stick.”
You should sign this and have it notarized every time you make a significant transfer of assets into a new series.
AFFIDAVIT OF SOLVENCY / QUALIFIED TRANSFER AFFIDAVIT
PURSUANT TO W.S. § 4-10-523
STATE OF ____________________ )
COUNTY OF __________________ ) ss.
I, ________________________________ (the “Settlor”), being first duly sworn upon my oath, depose and state as follows:
- Authority: I have full right, title, and authority to transfer the property described in the attached Asset Transfer Memorandum to the [Name of Master Trust], specifically for [Name of Series].
- Solvency: The transfer of said property will not render me insolvent. After the transfer, the fair market value of my remaining assets will exceed my total liabilities.
- Intent: I do not intend to defraud, hinder, or delay any creditors by transferring this property to the Trust.
- No Pending Actions: To the best of my knowledge, I do not have any pending or threatened court actions against me, except for those specifically identified here: ________________________________________________________________.
- No Administrative Proceedings: I am not involved in any administrative proceedings, except for those identified here: ________________________________________________________________.
- Child Support: At the time of this transfer, I am not in default of any child support obligation by more than thirty (30) days.
- Lawful Assets: The property being transferred was not derived from unlawful activities.
- Insurance: I confirm that I maintain personal liability insurance of at least $1,000,000.00 or coverage equal to the fair market value of the property being transferred, whichever is less, as required by Wyoming law for qualified transfers.
DATED this ____ day of ________, 20.
(Signature of Settlor)
NOTARY ACKNOWLEDGMENT
Subscribed and sworn to before me this ____ day of ________, 20.
Notary Public
My Commission Expires: _______________
Important Context for This Document
- The 4-Year Rule: In Wyoming, once you sign this and move the assets, a creditor usually only has 4 years to challenge the transfer. After that, the assets are generally “locked away” and unreachable for personal judgments against you.
- The $1M Insurance Requirement: Note item #8. Wyoming law requires you to have an umbrella or liability policy in place to ensure you aren’t using the trust to avoid basic responsibility.
- Keep it Private: Unlike the Certificate of Trust, this document is not filed with the state. You keep it in your private trust binder. It only comes out if a creditor ever tries to sue the trust to get at the assets.
Would you like me to create a “Trust Binder Table of Contents” so you know exactly how to organize all these documents we’ve created?