Clients May Benefit From Tax Savings, Asset Protection
CHICAGO, Nov. 7 /PRNewswire-FirstCall/ -- Northern Trust, a leading
provider of investment management, financial planning, fiduciary and banking
services for affluent individuals, families and family offices, today
announced it has established The Northern Trust Company of Delaware, a
Delaware limited purpose trust company, to give clients the advantages of
Delaware trust law, which is well known for fostering sophisticated estate and
income-tax planning techniques.
"Northern Trust was founded 116 years ago as a personal trust company on
the principles of trust and reliability," said Alison Winter, president and
CEO of Northern Trust-Northeast. "These values guide us today as we launch our
Delaware trust company, expressly to enhance the wealth transfer strategies of
our clients. Clients who have entrusted us to administer their property and
look after the well-being of their families for generations, now have the
ability to take advantage of Delaware's trust-friendly laws."
About Delaware Trusts
Delaware law has distinct advantages for personal trusts. Delaware doesn't
impose any state income tax on income accumulated in and capital gains earned
by irrevocable trusts for non-resident beneficiaries. A properly structured
Delaware trust can avoid any state income tax, thus enhancing its asset growth
over the term of the trust.
Unlike many states with laws that limit the lifespan of a trust, Delaware
law doesn't place time limits on dynasty (or perpetual) trusts holding
intangible assets or other personal property. Assets transferred to an exempt
dynasty trust can benefit generations of a grantor's descendents without
incurring additional gift tax, estate tax or generation-skipping tax.
Delaware law also allows trustees to take direction from outside advisors,
consultants or committees, who have the authority to select investment
managers and manage trust assets. This "administrative trust" structure can be
particularly helpful in the case of a trust that holds a concentrated position
in a security or a closely-held family entity or operating business.
In addition, Delaware law offers substantial protection for trust assets
against creditor claims. A Delaware asset protection trust presents an
alternative for investors who don't want to take on the expense, complexity
and risk of offshore trusts to protect their trust assets.
Daniel F. Lindley is president of The Northern Trust Company of Delaware.
Prior to joining Northern Trust, as a practicing Delaware attorney, Lindley
was the principal author in 1997 of the Qualified Dispositions in Trust Act,
Delaware's asset protection trust statute, and the 1995 legislation repealing
Delaware's Rule against Perpetuities.
"Many investors have come to find that Delaware offers a trust-friendly
jurisdiction that promotes creative estate planning and offers attractive
income tax advantages for trusts," explained Lindley. "That's of particular
interest to those seeking to preserve trust assets and who live in high income
tax states such as California, New York, New Jersey and Massachusetts."
Northern Trust Personal Financial Services (PFS) is one of the largest
U.S. providers of integrated financial services for high net-worth
individuals, families and family offices, including 24 percent of the Forbes
400 wealthiest families. Helping clients grow, preserve and transfer wealth,
Northern Trust PFS offers clients an objective, consultative approach to
personal financial management. PFS offices are located within 45 minutes of 40
percent or 1.1 million high net worth U.S. households. As of September 30,
2005, Northern Trust PFS had assets under custody of $219.3 billion, of which
$113.8 billion is managed by Northern Trust.
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of
investment management, asset and fund administration, fiduciary and banking
solutions for corporations, institutions and affluent individuals worldwide.
Northern Trust, a multibank holding company based in Chicago, has a growing
network of 84 offices in 18 U.S. states and has international offices in 11
countries. As of September 30, 2005, Northern Trust had assets under
administration of $2.8 trillion, and assets under investment management of
$607 billion. Northern Trust, founded in 1889, has earned distinction as an
industry leader in combining high-touch service and expertise with innovative
products and technology. For more information, visit
http://www.northerntrust.com .
SOURCE Northern Trust Corporation
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Related links:
http://www.northerntrust.com
CONTACT:
Rebecca Hayne, Vice President, Corporate
Communications, of Northern Trust, +1-312-444-4281, rlh5@ntrs.com
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