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Delaware trust: how it works and how to set one up
A Delaware trust is a trust governed by Delaware law, held for the beneficiaries you name in a deed, with a trustee in the state when the qualified disposition route is used. We coordinate the client side, so one team handles the checks, documents and reporting. Start with a quote.
Reviewed by a senior trust administrator, updated
Key facts
- Governing law
- Qualified Dispositions in Trust Act, 12 Del. C. 3570 to 3576[1]
- Perpetuity period
- No limit on personal property in trust; real property after 110 years[2]
- Asset protection rule
- A creditor must prove its case by clear and convincing evidence[1]
- Foreign law rules
- Forced heirship, legitime and elective share claims are not exception claims[1]
- Trustee requirement
- Qualified trustee: a Delaware-resident individual or a supervised entity[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 assets under a trust deedTrusteeHolds the assets and manages them under the trust deed
- holds and distributesBeneficiariesPeople who benefit from the trust under its terms
- 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 |
| Beneficiaries | People who benefit from the trust under its terms |
| Trust assets | The property held in the structure |
- The settlor transfers assets to a trustee under a written trust instrument that chooses Delaware law.
- For a qualified disposition, at least one trustee must be a qualified trustee, such as a Delaware-resident individual or a supervised entity.
- The trustee holds legal title and keeps the records, minutes and accounts for the beneficiaries.
- A letter of wishes guides the trustee's discretion; it is not binding on the trustee.
- The deed can name advisers or a protector with defined powers, such as directing investments.
What a trust in Delaware is
A trust is a legal relationship set out in a deed, not a company. You, the settlor, transfer assets to a trustee.
The trustee becomes the legal owner, but holds and manages the assets under the deed, for the beneficiaries.
Delaware trusts that aim at creditor protection rest on a long-standing statute, the Qualified Dispositions in Trust Act, 12 Del. C. 3570 to 3576 (source: Delaware Code: Title 12, chapter 35, subchapter VI).
The Act applies to qualified dispositions made on or after 1 July 1997 (same source).
A qualified disposition is a transfer to one or more trustees, at least one of whom is a qualified trustee, made by means of a trust instrument.
The instrument must say that Delaware law governs and must be irrevocable.
It is not treated as revocable just because the transferor keeps some powers, such as a veto on distributions or the right to remove a trustee (same source).
Most families choose a discretionary trust. The trustee decides who receives what and when, guided by a letter of wishes that you write and can update. The letter is not binding.
A Delaware living trust usually means a trust made in the settlor’s lifetime; it is usually revocable and has no statutory creditor protection.
The qualified disposition trust is a separate, irrevocable tool.
A trust is also not a way to hide assets. Banks, tax authorities and the trustee itself need to know who stands behind the trust.
What a trust does offer is continuity. A professional trustee follows the deed after the settlor steps back, falls ill or dies.
Who sets up trusts in Delaware
Delaware suits a settlor who wants to split the roles in a trust. Chapter 33 lets a deed give advisers the power to direct, consent to or veto the trustee (source: Delaware Code: Title 12, chapter 33).
A family can then keep investment decisions with an adviser it picks while the trustee holds title and the records.
The qualified disposition route suits someone ready for an irrevocable deed and for creditor rules written in the statute.
The settlor does not need to live in Delaware, because the state link comes from the qualified trustee.
The families who ask us are business owners and founders whose assets sit in several countries, and some with a link to the United States.
Typical aims are to hold shares or a portfolio across generations, or to keep investment choices with a named adviser.
A Delaware trustee must know who stands behind the trust before it accepts office.
If we have not met you, expect one more check, such as a second document set or a first payment from an account in your own name.
A trust that already sits with another trustee can move, or keep that trustee while we coordinate the papers and reporting.
The Act’s route covers a disposition under an instrument that chooses Delaware law, and your lawyer confirms how that applies to an older deed.
If a trust already exists, our trust administration service shows what administration covers once we are appointed.
Who may act as trustee
A qualified trustee is either a Delaware-resident individual who is not the transferor, or an entity Delaware law permits to act and a banking supervisor oversees (source: Delaware Code: Title 12, chapter 35, subchapter VI).
A Delaware trust company that meets the test can fill the role and usually covers custody, records and trustee duties.
Delaware trust companies differ in what they include, so compare each one’s service list before you choose.
The law page sets out the full test, the custody and record duties, and the sources.
Delaware trust advantages: features families ask about
The Delaware trust advantages that come up most often are four features, and each is a tool, not a result.
- Time limit. No interest in personal property in trust is void under any rule against perpetuities. Real property must be distributed after 110 years, with exceptions (source: Delaware Code: Title 25, chapter 5).
- Creditor claims. A creditor must prove its case by clear and convincing evidence. Claims that arise after the transfer lapse unless brought within 4 years (same source as the Act).
- Exception creditors. The Act lists people owed support, alimony or a division of property, and people injured in person or property before the transfer.
- Advisers and protectors. A deed can give advisers the power to direct, consent to or veto the trustee, who generally follows a valid direction (source: Delaware Code: Title 12, chapter 33).
How a court in your own country treats a Delaware trust is a question for your lawyer there. The statute also says that support exceptions do not cover forced heirship, legitime or elective share claims.
If your plan is long-term, ask early about a Delaware dynasty trust and which assets would sit in it.
What the trustee does
Delaware trust company services on a qualified disposition go beyond a name on the deed. In practice the work looks like this:
- holding title to the assets apart from its own, with some property, records or tax returns kept in Delaware;
- following valid directions from an investment adviser or protector named under chapter 33;
- minutes for each distribution or major decision;
- accounts and an asset report that we send you;
- repeat identity checks and tax self-certification forms for the people tied to the trust.
You choose the beneficiaries and write the letter of wishes. With a directed deed you also decide whether an adviser or the trustee runs investments.
We coordinate with the Delaware trustee; your own advisers take the legal and tax questions.
Documents and steps to start
Expect to supply identity documents, evidence of where your wealth came from and the facts that go into the deed.
| What we ask for | Who it concerns | Why |
|---|---|---|
| Passport and proof of address | Settlor, protector, anyone who can direct the trust | Identity and address checks |
| Evidence of source of funds and wealth | Settlor | To show where the assets came from |
| Names and details of beneficiaries | Beneficiaries | Identification at payout |
| Tax residence and citizenship | Settlor | To set the reporting path |
Basis: the onboarding checklist of One Pacific Trust, dated 2026-11-05.
The Delaware firm’s draft names the qualified trustee, states that Delaware law governs and sets out any adviser’s powers. Your letter of wishes goes with it, and your own lawyer reviews both.
Timing rests on your documents and on the firm, the trustee’s checks and the bank. A checklist shows where each step stands.
The set-up guide covers each stage, and the cost guide shows what is charged at each one.
Facts we reviewed, with source and date
Each legal fact on this page carries its source and date. Your lawyer confirms how they apply to your deed.
Choosing between Delaware and another place
Delaware is built around a qualified trustee in the state and a directed model, where advisers can hold defined powers.
Other places use other service models, and each guide explains how; the jurisdictions hub lists every place, all open for new trusts.
Three Delaware questions help you decide:
- Do you want advisers to direct the trustee? Chapter 33 supports that, and the trustee generally follows a valid direction.
- Is an irrevocable deed acceptable? A qualified disposition must be irrevocable, even if you keep a veto or the right to remove a trustee.
- Does real property matter? Land and buildings face the 110-year cap, while personal property has no fixed end.
Tax and legal comparisons between places belong with your advisers, because the outcome turns on your residence and your assets, not on the place alone.
The comparison tool puts Delaware beside another place.
You can also browse every place we cover, or read the answers to common questions first.
When you are ready, request a quote for Delaware. It is an estimate based on what you tell us, not a binding offer, and we confirm it once we have seen the structure and the assets.
Frequently asked questions
Who can set up a trust in Delaware?
Adults from many countries can, provided the deed names Delaware as the governing law. On the qualified disposition route, one trustee must be a qualified trustee: a Delaware-resident individual who is not the transferor, or a supervised entity. Where you live affects tax, so tell us your residence and where your assets sit.
How do I start a trust in Delaware?
Send a short enquiry or request a quote. Name the assets you want to place in trust, whether an adviser should direct investments under chapter 33, and who benefits. A qualified disposition must be irrevocable, so a call about that choice often comes before drafting. Identity checks and the draft follow before you sign.
Who can help me start a trust in Delaware?
A Delaware lawyer drafts the deed, including any chapter 33 adviser powers, and a qualified trustee accepts office. The trustee, the firm and the bank each run their own checks. We coordinate onboarding, document review and reporting on your side, and your own lawyer reviews the draft before you sign.
Does a Delaware trust have a time limit?
For personal property held in trust, the statute says no interest is void under any rule against perpetuities, so there is no fixed end date. Land and buildings held in trust face a 110-year cap, subject to exceptions. Your lawyer checks the deed against the asset mix.
Does Delaware tax a trust set up by a non-US person?
State and federal taxes both matter, and the answer depends on residence and on the assets held. US-situated assets can bring a federal estate tax filing for a non-US person. Your tax adviser applies the rules to your facts. The tax and reporting page explains what the trustee files.
Sources
- Delaware Code: Title 12, chapter 35, subchapter VI, Qualified Dispositions in Trust, read 2026-11-05.
- Delaware Code: Title 25, chapter 5, Rule Against Perpetuities, read 2026-11-05.
- Delaware Code: Title 12, chapter 33, Administrative Provisions, read 2026-11-05.
- Internal Revenue Service: Some nonresidents with U.S. assets must file estate tax returns, read 2026-11-05.