Kansas has traditionally taken a more conventional approach to the rule against perpetuities, limiting how long certain interests could remain in trust. Recent changes to Kansas trust law, however, have created new opportunities for families interested in trusts that may continue across multiple generations.
As a result, evaluating Kansas for dynasty trust planning is no longer as simple as looking at the state’s general perpetuities period. Properly structured trusts may be able to continue far longer than the traditional rule would suggest.
Kansas and the Rule Against Perpetuities
A dynasty trust allows assets to remain in trust across multiple generations rather than passing outright to beneficiaries after each generation. Keeping assets in trust can provide continuity of management, preserve family governance, and create a lasting framework for family wealth.
Kansas generally applies a statutory rule against perpetuities that provides a 90-year alternative period for certain nonvested interests. However, Kansas law also allows qualifying trusts to opt out of the rule against perpetuities under certain circumstances. As a result, properly structured Kansas dynasty trusts may continue beyond the state’s general 90-year period and potentially operate without a fixed statutory termination date.
This distinction makes Kansas more favorable for long-term trust planning than a simple reading of its 90-year perpetuities rule might suggest.
A Changing Approach to Long-Term Trusts
Kansas illustrates how quickly the landscape of dynasty trust planning can change.
A state that once imposed relatively traditional limitations may amend its laws to provide families with significantly greater flexibility. For families considering a trust that may remain in existence for generations, these changes can materially affect whether their home state provides a workable framework.
Kansas has also adopted modern trust concepts that give trustees greater flexibility when circumstances evolve. These developments make the state a more interesting option for multigenerational planning than it was in the past.
Trust Duration Does Not Tell the Whole Story
The ability to establish a very long-term trust is an important consideration, but dynasty trust planning involves more than avoiding a mandatory termination date.
Families also consider privacy, directed trust laws, trust modification flexibility, quiet trust provisions, and the administrative infrastructure available to trustees and beneficiaries. A trust that may continue for generations needs more than longevity. It also needs a legal framework capable of adapting as families, assets, and laws change over time.
This broader comparison is where differences among trust jurisdictions become more apparent.
Kansas Compared to South Dakota
Kansas has taken meaningful steps toward allowing longer-lasting trusts, narrowing one of the most obvious differences between its laws and those of leading dynasty trust jurisdictions.
South Dakota’s advantage, however, extends beyond perpetual trust duration. Its trust laws have been refined over decades to address privacy, beneficiary information, directed trusts, trust modifications, and other issues that arise when wealth remains in trust across multiple generations.
South Dakota also benefits from an established trust administration industry and a formal process for continually reviewing its trust laws. For a family establishing a trust that may continue indefinitely, that combination of favorable law, administrative experience, and ongoing legislative attention can carry significant weight.
Evaluating Kansas as a Dynasty Trust Jurisdiction
The changes to Kansas law demonstrate why families should evaluate current statutes rather than relying on a state’s historical reputation.
Kansas now offers opportunities for properly structured trusts to continue beyond the general 90-year statutory period, making the state considerably more relevant to dynasty trust planning. Whether Kansas is the right jurisdiction ultimately depends on how its broader trust framework compares with the family’s long-term objectives.
For families seeking more extensive privacy, administrative flexibility, or an established national trust industry, comparing Kansas with South Dakota and other leading jurisdictions remains an important part of the planning process.
Professional Guidance
Dynasty trust laws continue to evolve, and changes to state law can significantly alter the options available to families. Understanding both the general rules and the exceptions that apply to particular trust structures is essential when comparing jurisdictions.
Stuart Green Law, PLLC helps families evaluate these differences and determine which jurisdiction best aligns with their goals for long-term trust administration, family governance, and multigenerational wealth preservation.
