People who live in states with high income taxes sometimes relocate to a state with a more favorable tax climate. A similar strategy can be available for trusts. If a trust is subject to high state income taxes, you may be able to change its residence — or “situs” — to a state with low or no income taxes. What can a “trust-friendly” state offer? In addition to offering low (or no) tax on trust income, some states: Authorize domestic asset protection trusts, which provide added protection against creditors’ claims, Permit silent trusts, under which beneficiaries need not be notified of their interests, Allow perpetual trusts, enabling grantors to establish “dynasty” trusts that benefit many generations to come, Have directed trust statutes, which make it possible to...