Alaska offers these distinct advantages for directed trusts:

• Favorable trust laws: Alaska has some of the most comprehensive and flexible trust laws in the United States, which allow for greater control and flexibility in trust design and administration, allowing grantors to retain their investment advisor of choice, no matter where they are based.
• No state income tax: Alaska does not impose a state income tax on trust income. This can result in significant tax savings for high-net-worth individuals.
• Trust protector powers: Alaska law allows the appointment of a trust protector, who can change trustees and beneficiaries, direct distributions, move the trust situs, and change or terminate the trust. A trust protector is not liable as a trustee or fiduciary when performing the function of a trust protector unless the trust provides to the contrary.
• Separation of trustee duties: Alaska law allows a grantor to appoint different trustees for investment, distribution, and administrative duties, which limits the liability of each trustee to their specific area of responsibility.
• Protection for directed trustees: If a directed trustee has not been given a specific responsibility, they cannot be held liable for the actions of another advisor under Alaska law. A trustee has no obligation to investigate or inquire about direction given while under the requirement to follow an advisor’s direction.
• Fiduciary status for advisors: In cases where a trust requires the trustee to follow the direction of an advisor, that advisor is considered a fiduciary under Alaska law.

Note: The information provided here is for general educational and informational purposes only. It is not legal advice and should not be interpreted as such. For a thorough understanding of these topics relevant to your specific circumstances, we recommend consulting a qualified estate planning attorney. Peak Trust Company cannot provide legal advice; however, we can serve as an informational resource and provide referrals to highly skilled attorneys who can offer legal and tax guidance tailored to your specific needs.