Wyoming's DAPT statute lets you be your own beneficiary in a self-settled irrevocable trust, which most states prohibit. That makes Wyoming one of the few domestic jurisdictions where you can have real creditor protection without giving up all economic benefit.
Wyoming LLC
A Wyoming LLC gives you charging order protection as the exclusive creditor remedy, meaning a judgment creditor cannot seize your membership interest or force a liquidation. Wyoming also allows single-member LLCs with no public disclosure of ownership, no state income tax, and annual fees of just $60. Formation costs run $100 to $500 through a registered agent, plus $150 to $300 per year in compliance costs. This structure fits active business owners, real estate investors, and anyone holding income-producing assets who needs a clean operational wrapper with strong domestic liability insulation. For those holding crypto or digital assets, Wyoming's DAO LLC statute also creates a unique on-chain ownership option no other state currently matches.
Revocable Living Trust
A revocable trust avoids probate, consolidates assets under one document, and lets you retain full control during your lifetime while designating how assets pass at death. It offers zero asset protection while you are alive because creditors can reach trust assets the same way they reach personal assets. Drafting costs range from $1,500 to $5,000 depending on complexity, and there are no ongoing state filing fees. This fits people with real estate in multiple states, those who want a smooth, private transfer to heirs, or anyone who wants to avoid the cost and delay of probate court.
Irrevocable Trust
An irrevocable trust, once funded, removes assets from your taxable estate and shields them from future creditors, but you surrender control. Wyoming's Domestic Asset Protection Trust (DAPT) statute is one of the strongest in the country, allowing a self-settled irrevocable trust with a two-year seasoning period before assets are protected from existing creditors. Drafting and setup typically run $5,000 to $15,000, and you need an independent Wyoming trustee, which adds $1,000 to $3,000 per year. This structure suits high-net-worth individuals facing litigation risk, those approaching estate tax thresholds, or anyone doing serious multi-generational planning.
Wyoming LLC Owned by a Trust
The most effective structure for most serious asset holders is a Wyoming LLC owned by an irrevocable trust. The LLC holds and operates assets with charging order protection, while the trust owns the LLC membership interest, handles succession without probate, and provides an additional layer of separation from personal creditors. This layered approach adds complexity and cost, typically $8,000 to $20,000 to set up properly with legal help, but it covers operational liability, estate transfer, and long-term creditor protection in one architecture. Anyone holding real estate, a business, or significant liquid assets across multiple accounts should model this dual-layer approach before defaulting to a single-entity solution.
Things people ask first.
Can a Wyoming LLC replace a trust for estate planning?
No. A Wyoming LLC does not avoid probate on its own because membership interests are personal property subject to your estate. You still need a trust or a transfer-on-death membership agreement to pass interests outside probate.
Does putting assets into a Wyoming LLC protect them from creditors better than a trust?
For operational liability, yes. Wyoming's charging order protection is stronger than most trust structures for business and investment assets. But for pre-existing or personal creditors, a properly drafted irrevocable trust provides deeper protection because assets leave your estate entirely.
What is a Wyoming DAPT and how is it different from a regular trust?
A Wyoming Domestic Asset Protection Trust is a self-settled irrevocable trust where you can be a discretionary beneficiary while still achieving creditor protection after a two-year seasoning period. A standard revocable trust gives you no creditor protection at all.
How long does it take to set up a Wyoming LLC versus a trust?
A Wyoming LLC can be formed in one to three business days through the Secretary of State's online portal. A trust requires legal drafting and typically takes two to four weeks, longer for complex irrevocable structures requiring a Wyoming trustee.
Are there tax differences between a Wyoming LLC and a trust?
A single-member Wyoming LLC is a disregarded entity by default, meaning income flows to your personal return with no entity-level tax. Irrevocable trusts are separate tax entities with compressed brackets that hit the top 37% federal rate at just over $15,000 of undistributed income, so tax planning inside the trust matters significantly.
Can a non-US person use a Wyoming LLC or trust?
A non-US person can form a Wyoming LLC, but US tax implications depend on whether the LLC has US-source income. Non-US persons generally cannot be beneficiaries of a domestic trust without triggering foreign trust rules under IRC 679, which can create significant reporting obligations.
Ready to layer your Wyoming LLC and trust into a structure that actually holds?
The Offshore Playbook maps out how domestic structures like Wyoming LLCs and DAPTs connect to offshore holding layers, so you can see the full architecture before you pay a lawyer to build it. gramps.chat can also walk you through which combination fits your asset profile right now.
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