SimplyTrust Knowledge Base

A: A trust is a legal entity that holds and manages assets according to your instructions. You transfer ownership of assets to the trust, and a trustee follows your directions for managing and distributing them. Because the trust owns the assets rather than you personally, they bypass probate and transfer directly to beneficiaries upon your death.

A: Delaware has detailed trust statutes with flexible execution rules in some situations. For example, a written trust is not automatically void based on formalities. Delaware also recognizes certain execution paths under Title 12. Meanwhile, Nevada has modern trust administration features. Nevada law also supports electronic trusts under NRS 163.0095. Both states support electronic execution options in practice. Delaware has enacted a statute authorizing electronic execution of trust documents.

A: An inheritance tax is charged to the person receiving property (as opposed to estate tax that is charged to the estate itself). The rate often depends on family relationships. Delaware chose to move away from that approach. Some supporters argued it was outdated. They wanted simpler rules and stronger competition with nearby states.

A: No. For decades, Delaware did impose a state estate tax tied to the federal estate tax system. Under that system, estates above a certain value had to pay a tax on the value of assets before passing them to heirs. The exemption closely tracked the federal estate tax exclusion. But lawmakers and advocates increasingly viewed the tax as a deterrent to economic activity and a potential reason for residents to relocate.

A: Have you ever considered how trust funds shape perceptions of hard work and success? An interesting story highlights a family member, an elderly cousin, who has enjoyed a life cushioned by a trust fund, yet criticizes younger generations for wanting an easy life. This contradiction raises important questions about wealth, inheritance, and the values we pass down.