The Delaware Advantage
Delaware offers individuals and businesses a unique climate for protecting and perpetuating wealth.
Among PNC's exceptional and specialized resources is our capability to offer the benefits of Delaware Trusts through the PNC Delaware Trust Company. It is distinguished for its tradition of favorable personal trust laws which help wealthy individuals preserve wealth for themselves and future generations. Delaware is recognized for it's progressive tax legislation emphasizing flexibility, tax savings, perpetual trusts, and asset protection.
PNC Delaware Trust Company
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Types of Delaware Trusts
Asset Protection Trusts
In today's increasingly litigious society and uncertain economy, wealthy individuals are focused on preserving hard-earned assets for retirement and passing a legacy to heirs. Professionals, business owners and others concerned about potential lawsuits are using Delaware Asset Protection Trusts to protect assets from future creditors. The creator of the trust ("Settlor") has the ability to receive distributions from the trust and can retain control over the investment of trust assets.
Delaware's Direction Statute adds significant flexibility to Delaware Trusts by permitting the Settlor to allocate distribution, investment, and administrative decisions among co-trustees, advisors, and/or trust protectors. The Settlor can appoint an Investment Advisor to be responsible for investment decisions and a Distribution Advisor, who has personal knowledge of beneficiaries' needs, to make distribution decisions. A Trust Protector may also be appointed with specific powers to address changes in the law and other circumstances.
Delaware's "Decanting" Statute
Sometimes the provisions of an irrevocable trust can become problematic or difficult to administer. Delaware offers the possibility to amend irrevocable trusts to better help fulfill the needs of beneficiaries and to address administrative issues. Delaware law permits a trustee, in certain circumstances, to effectively amend a problematic trust without court costs by "decanting," or pouring over the assets of a trust to a new amended trust.
Delaware Tax-Advantaged ("DING") Trusts
The creation of a Delaware Tax-Advantaged Trust, sometimes called a "DING" Trust (Delaware Incomplete Gift Non Grantor Trust) can create a unique opportunity to minimize, or even eliminate, state income taxes. Delaware effectively does not impose any income tax on accumulated income or retained capital gains in a trust that does not have any Delaware resident beneficiaries. So, for example, in certain circumstances a business owner may be able to save state income tax on the capital gain realized upon the sale of his or her interest in a closely held business with the use of a Delaware Tax-Advantaged Trust.
Moving Existing Trusts to Delaware
The advantages of Delaware law may be enjoyed not only by trusts that are initially created under Delaware law, but also by existing trusts created under the laws of another jurisdiction. In many circumstances, an existing trust can be moved to Delaware to help better fulfill the Settlor's intent and the beneficiaries' interest. Existing trusts are moved to Delaware to:
- Minimize or eliminate state income tax;
- Appoint Investment Advisors, Distribution Advisors and/or Trust Protectors under Delaware's Direction Statute;
- Enable a trustee to amend a problematic irrevocable trust under Delaware's Decanting Statute;
- Extend the duration of a trust;
- Obtain more effective creditor protection for beneficiaries;
- Minimize fees and administrative costs.
Important Legal Disclosures and Information
The PNC Financial Services Group, Inc. (“PNC”) uses the marketing name PNC Wealth Management® to provide investment and wealth management, fiduciary services, FDIC-insured banking products and services, and lending of funds through its subsidiary, PNC Bank, National Association (“PNC Bank”), which is a Member FDIC, and to provide specific fiduciary and agency services through its subsidiary, PNC Delaware Trust Company or PNC Ohio Trust Company. Securities products, brokerage services, and managed account advisory services are offered by PNC Investments LLC, a registered broker-dealer and a registered investment adviser and member of FINRA and SIPC. Insurance products may be provided through PNC Insurance Services, LLC, a licensed insurance agency affiliate of PNC, or through licensed insurance agencies that are not affiliated with PNC; in either case a licensed insurance affiliate may receive compensation if you choose to purchase insurance through these programs. A decision to purchase insurance will not affect the cost or availability of other products or services from PNC or its affiliates. PNC does not provide legal, tax, or accounting advice unless, with respect to tax advice, PNC Bank has entered into a written tax services agreement. PNC does not provide services in any jurisdiction in which it is not authorized to conduct business. PNC Bank is not registered as a municipal advisor under the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Act”). Investment management and related products and services provided to a “municipal entity” or “obligated person” regarding “proceeds of municipal securities” (as such terms are defined in the Act) will be provided by PNC Capital Advisors, LLC, a wholly-owned subsidiary of PNC Bank and SEC registered investment adviser.
“PNC Wealth Management” and “PNC Wealth Insight” are registered service marks of The PNC Financial Services Group, Inc.
Important Information about Procedures for Opening a New Account
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.
What this means for you: When you open an account, we are required by Federal law to ask for your name, street address, date of birth (for natural persons) and other information as required to identify you. This may include a request or requests for confirmatory information such as presentation of your driver’s license and/or other document(s).
Investments: Not FDIC Insured. No Bank Guarantee. May Lose Value.
Insurance: Not FDIC Insured. No Bank or Federal Government Guarantee. Not a Deposit. May Lose Value.