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Alaska trust laws: key features and rules
Alaska trust laws let a settlor set up a spendthrift trust of which the settlor is also a beneficiary, under AS 34.40.110, with set limits on creditor claims. Below are the governing law, who may act as trustee, the features and the limits, each with its source; take them to your lawyer before any deed is drafted.
Reviewed by a senior trust administrator, updated
The legal frame at a glance
What the law provides, with the source number for each item.
Key facts
- Perpetuity period
- Powers of appointment must be exercised or end within 1,000 years[2]
- Asset protection rule
- A creditor must prove intent to defraud by clear and convincing evidence[1]
- Reserved settlor powers
- The settlor may appoint and remove trustees, protectors and advisors[1]
Numbers in brackets point to the Sources list at the end of this page.
Swipe sideways to see the whole diagram.
- SettlorSets up the structure and transfers assets into it
- transfers assetsTrusteeHolds the assets and manages them under the trust deed
- holds and distributesBeneficiariesPeople who benefit from the trust under its terms
- Investment adviser gives investment directionsInvestment adviserGives investment directions that the trustee follows
- Trustee holds legal titleTrust assetsThe property held in the structure
Roles and notes
| Part of the structure | What it does |
|---|---|
| Settlor | Sets up the structure and transfers assets into it |
| Trustee | Holds the assets and manages them under the trust deed |
| Investment adviser | Gives investment directions that the trustee follows |
| Beneficiaries | People who benefit from the trust under its terms |
| Trust assets | The property held in the structure |
- The deed can name a trust protector or an advisor to the trustee, with the powers it defines.
- The settlor may appoint and remove trustees, protectors and advisors, within the limits of the statute.
- The trustee holds legal title and carries out the decisions the deed gives it.
- A restriction in the deed bars the transfer of any beneficiary's interest, including the settlor's, before payment.
- Your Alaska lawyer confirms the wording of each power and who must serve as trustee.
The governing law
Alaska’s main trust provision for this purpose is the spendthrift statute, AS 34.40.110.
It lets a person who transfers property in trust provide that a beneficiary’s interest cannot be transferred before payment, voluntarily or involuntarily.
The beneficiary can be the settlor (source: Alaska Statutes: Title 34, chapter 40, Restricting Transfers of Trust Interests).
The restriction is treated as a restriction on transferring the beneficial interest, enforceable under non-bankruptcy law.
Before the assets move in, the settlor signs a sworn affidavit.
It states, among other things, that the settlor has the right to transfer the assets, will not be made insolvent by the transfer and does not intend to defraud a creditor (same source).
Alaska courts have exclusive jurisdiction over an action based on the transfer (same source).
Perpetuities sit in a separate chapter of Title 34. Our overview of Alaska trusts puts the law in context.
Who may act as trustee
Your Alaska lawyer confirms who may serve as trustee for the deed you plan.
What the statute does say concerns the settlor’s role.
The settlor may have authority under the deed to appoint a trustee, a trust protector or an advisor. The settlor may also remove a trustee or protector and appoint a replacement who is not a related or subordinate party (same source).
A settlor who is also a beneficiary can serve as co-trustee or as an advisor to the trustee without losing the restriction, if the settlor has no trustee power over discretionary distributions (same source).
The deed sets out who directs what.
We help you work through these roles with your lawyer and your other advisers.
Features the law allows
The deed can combine a few statutory tools:
- Settlor as beneficiary. The restriction applies to a settlor who is also a beneficiary, even as co-trustee or advisor, if the settlor has no trustee power over discretionary distributions.
- Appointment and removal powers. The settlor can keep the right to appoint and remove trustees, protectors and advisors, within the statute’s limits.
- Discretionary distributions. The restriction still applies where a beneficiary can receive income or principal by the exercise of someone’s discretion.
- Divorce. A beneficiary’s interest in a protected trust is not property to be divided on divorce, with exceptions for a settlor’s own transfers around marriage.
- Limits on powers of appointment. A power of appointment must be exercised, or end, within 1,000 years (source: Alaska Statutes: Title 34, chapter 27, Statutory Rule Against Perpetuities).
Each feature is a tool, not a result. Whether it works for your family depends on your residence, your assets and the law of the places where they sit.
Limits and requirements
The same statute sets limits. A creditor of the settlor can still bring a claim if it proves, by clear and convincing evidence, that the transfer was made with intent to defraud that creditor.
A claim by a creditor who became one after the transfer lapses unless it is brought within 4 years of the transfer.
A creditor that existed before the transfer has the later of 4 years or one year after discovery, if it meets set conditions (source: Alaska Statutes: Title 34, chapter 40, Restricting Transfers of Trust Interests).
The restriction does not protect the settlor’s interest in three further cases.
These are a trust the settlor can revoke or end without the consent of a person with a substantial interest, a trust that requires distributions to the settlor, and a settlor in default of a child support order by 30 days or more.
The settlor may not benefit from, direct or use trust property except as the deed states, and a side agreement that gives more is void.
Your lawyer confirms how it applies to your deed.
Sources and review dates
Every fact above comes from the Alaska Legislature statute pages, accessed on 2026-11-05. We review the facts on this page when the law changes.
The plain-answers page covers the practical questions, the step-by-step guide lists the documents, and the cost guide explains what shapes the price.
For the wider picture, see our page on wealth structuring and asset protection.
Tell us what you are planning and request a quote to start.
Frequently asked questions
Which law governs a trust in Alaska?
The trust instrument chooses the law, and a trust that wants the statutory protection must follow AS 34.40.110. Other Alaska statutes cover trustees, advisors and perpetuities. Your Alaska lawyer confirms which provisions apply to the deed you plan. Actions based on a transfer belong exclusively in Alaska courts.
Who may act as trustee in Alaska?
Who may serve as trustee is a point for your Alaska lawyer, who checks it against the deed you plan. The statute does let the settlor appoint and remove trustees, protectors and advisors within its limits, and a settlor who is also a beneficiary can act as co-trustee or advisor without trustee power over discretionary distributions.
Can a trust in Alaska have a protector?
Yes. The statute refers to a trust protector and to an advisor to the trustee, and it lets the settlor appoint and remove them within set limits. A replacement the settlor appoints after removing a trustee or protector must not be a related or subordinate party. The deed defines each power, and your Alaska lawyer confirms the wording.