SimplyTrust Knowledge Base

A: Trust jurisdiction is the legal home of a trust. It’s the state whose courts, statutes, and tax rules apply to the trust document and its assets. This concept plays a powerful role in estate planning because different states offer different advantages. Some prioritize privacy, others offer tax benefits, and some provide better protection from creditors.The idea of selecting a favorable trust jurisdiction gained traction in the late 20th century. As certain states (like Nevada, South Dakota, and Delaware) began modernizing their trust laws to attract wealth planning, others retained more traditional rules. This created a system where people could legally “shop around” for the most favorable jurisdiction—similar to choosing a state for incorporation.Trust jurisdiction became especially important as high-net-worth individuals began using them advantageously. Not just to avoid probate but also to manage taxes, protect assets, and maintain long-term control over distributions.

A: A revocable trust—also called a living trust—is a flexible estate planning tool that allows someone (called the grantor) to transfer ownership of assets into a trust while maintaining control during their lifetime. Upon their passing, the assets are distributed to beneficiaries without going through probate.Both Iowa and Nevada allow residents to create revocable trusts. But that’s where the similarities end. Iowa trusts are perfectly functional and help avoid probate. But Nevada trusts offer enhanced privacy, stronger asset protection for beneficiaries, and tax advantages. Nevada trusts have an edge in the areas of privacy, probate, asset protection, income tax, and trust jurisdiction, or geography (i.e., you don’t have to live there).

A: Unlike an estate tax, which applies to the overall value of someone’s estate, an inheritance tax is applied to the portion each individual inherits. And the rate can vary based on who inherits and how much they receive. Iowa used to have both an inheritance tax and also an estate tax.For years, the state imposed an inheritance tax on certain beneficiaries. While spouses, parents, and lineal descendants (like children and grandchildren) were exempt, other heirs were not. Those heirs included siblings, nieces, nephews, and friends. Tax rates ranged from 5% to 15%, depending on the size of the inheritance and the relationship to the decedent. This meant that even moderate inheritances left to non-immediate family members could trigger a significant tax bill.

A: The course is designed for a diverse audience, including heads and members of multi and single-family offices, wealth managers, private bankers, and financial planners. If you're involved in managing wealth or advising families on their financial strategies, this training is tailored for you. By attending, you will be better equipped to navigate the challenges of wealth management in today's fast-paced world.

A: Iowa once imposed both an estate tax and an inheritance tax. These are different. An estate tax is based on the total value of someone’s estate. An inheritance tax, on the other hand, is based on what individual heirs receive.Iowa repealed its state estate tax in the early 2000s. Before that, the state followed what’s known as a pickup tax. This meant Iowa tied its estate tax directly to the federal tax. When the federal government phased out its credit for state estate taxes in 2005, Iowa’s estate tax effectively ended. So the answer is no: Iowa does not currently have an estate tax.However, the inheritance tax stuck around for much longer. For years, Iowa residents still had to worry about inheritance taxes—even if there was no estate tax. That changed in 2021 when the Iowa legislature passed a law phasing out the inheritance tax over five years. By January 1, 2025, the tax was fully repealed.

A: Joint tenancy is a legal arrangement in which each co-owner holds an equal share of a property or asset. Most importantly, it includes right of survivorship, meaning that when one owner passes, their share automatically transfers to the surviving owner(s) without going through probate.This arrangement can apply to real estate, bank accounts, investment accounts, and even vehicles in some states. It’s most commonly used between spouses but can be set up between any individuals.