The #1 Ultra High Net Worth Trust Structure

Family governance is one of the most important, yet often overlooked, elements of multigenerational estate planning. For generations, settlors have relied heavily on trustees to preserve their intentions and maintain the family principles they hoped would guide future beneficiaries. Under traditional trust law, however, preserving family governance was never truly the trustee’s role. A trustee is responsible for administering the trust according to its terms, not serving as the long-term voice of the family.

Modern directed trust laws provide a different approach. Rather than concentrating authority with a single trustee, a directed trust allows responsibilities to be divided among trustees, advisors, protectors, and family representatives. This creates opportunities to incorporate family governance directly into the trust structure, placing responsibility for different decisions with the individuals or institutions best positioned to make them.

Not every state has adopted directed trust laws, and the strength and flexibility of those laws vary considerably among jurisdictions. South Dakota, Delaware, Nevada, Wyoming, and Alaska are among the states commonly associated with directed trusts, with each offering a different statutory framework. For families thinking across generations, choosing the right jurisdiction and governance structure can help ensure that a trust preserves more than wealth; it can also provide a framework for carrying forward the settlor’s objectives and family priorities.