by: Russ DeLibero, Chief Wealth Planning Officer
and Keenan Call, Director, Family Office Services
Beyond the transfer of wealth, estate planning increasingly extends to considerations of structures, timing, family dynamics, impact and legacy. Silent trusts have emerged as a sophisticated tool for families seeking to balance privacy, control and beneficiary development. In this two-part series, we first examine the legal frameworks and jurisdictional considerations that make these structures possible, followed by a closer look at the role they play in family dynamics and the preparation of the next generation.
Comprehensive estate planning involves more than simply determining who will receive assets and when — it requires consideration of timing, structure and the effects of wealth transfer on the individuals involved. One of the more nuanced tools that has emerged in response to these concerns is the silent trust, also known as the quiet trust. For ultra-high-net worth families focused on preserving both privacy and motivation, this structure offers a compelling, though complex, solution.
A silent trust is a trust under which the trustee is permitted, either temporarily or indefinitely, to withhold information about the trust’s existence, terms or administration from one or more beneficiaries. This represents a departure from traditional trust law, which generally imposes a duty on trustees to keep beneficiaries reasonably informed. Silent trusts bypass this default by placing greater weight on the intent of the individual who created the trust, commonly referred to as the Grantor or Settlor. The success of a silent trust therefore depends not only on careful drafting, but also on whether the governing law allows such a departure from traditional disclosure requirements.
As of 2026, silent trusts are not recognized in every state. Most states follow the Uniform Trust Code, which mandates that beneficiaries over age 25 be kept reasonably informed. In those jurisdictions, the ability to delay or restrict disclosure is limited. As a result, careful consideration and coordination is paramount when incorporating silent trusts into an estate plan.
To create a silent trust, one must typically domicile the trust in a “trust-friendly” jurisdiction, with specific enabling statutes; and a limited number of states have emerged as leading options for this purpose. Delaware is often viewed as a leading jurisdiction in this area, offering a well-established and flexible framework for silent trust structures, particularly where the trust document clearly defines when disclosure will occur. South Dakota is also widely recognized for its expansive approach, as its statutes allow for a total seal of trust information and grants the settlor broad power to restrict discovery for any duration. Nevada provides strong privacy protections as well, though its framework is a more measured approach regarding the waiver of notice. Alaska, New Hampshire, Michigan and Wyoming are considered silent trust friendly and have modernized statues that allow this privacy, but each with specific, important distinctions. For example, Michigan enacted its silent trust statute in 2024 but has a maximum duration of 25 years before a beneficiary must be informed of the trust. Other states like Ohio, Florida and Texas allow limited versions, but do not offer the full “silence” available in the more favorable jurisdictions.
Given this landscape, the choice of jurisdiction becomes a central element of strategy. In many cases, the effectiveness of a silent trust is determined less by the language of the document and more by where it is governed. This has led to an increased focus on trust situs planning, where families intentionally establish or migrate trusts to jurisdictions that align with their objectives.
A constant among the varied state laws, as they relate to silent trusts, is that trustees remain fiduciaries and must act in the best interests of beneficiaries, even when those beneficiaries are unaware of the trust. The absence of direct communication does not eliminate fiduciary responsibility, rather it changes how that responsibility is exercised and monitored.
One of the more interesting challenges within silent trust planning is maintaining accountability in the absence of beneficiary awareness. If a beneficiary does not know a trust exists, they cannot monitor the trustee or raise concerns about administration. To address this, many states require the appointment of a designated representative. This individual receives the information that would otherwise be provided to the beneficiary and serves as an independent check on the trustee’s actions.
The presence of a designated representative helps preserve the integrity of the fiduciary structure, but it also introduces a new layer of reliance. The effectiveness of the arrangement depends heavily on the judgment and independence of that individual. In practice, this role often becomes one of quiet oversight, ensuring decisions are consistent with the terms of the trust and the intent of the grantor.
Privacy is often the primary intention of silent trusts. However, asset protection is also a key driver. If beneficiaries are unaware of assets, they cannot be disclosed. This can offer an additional layer of asset protection for both the grantor, who has irrevocably transferred assets, and the beneficiary, who has no control or awareness of the assets. Despite the potential benefits, there are a few major drawbacks from a structure perspective. Namely, these are irrevocable trusts, therefore a lack of control and flexibility is present. There is also the potential for lawsuits given the lack of transparency and potential for abuse. Beneficiaries, who are unaware of the assets and have no oversight into the management of the assets, may look to legal challenges upon awareness, if there was deemed harm or feeling of mismanagement. Without beneficiary oversight, a trustee’s mistakes might not be discovered for decades, leading to massive “hindsight” litigation once the trust is revealed. From a tax perspective, if a trustee avoids making distributions to keep the trust secret, the trust may be taxed at the highest federal bracket (37% for income over $16,000).
Silent trusts offer a powerful way to align legal structure with family intent, but they are not solely legal and tax-driven instruments. Their effectiveness depends on thoughtful design, appropriate jurisdiction and a clear understanding of the responsibilities they impose. In Part 2 of this series, the focus shifts from legal architecture to human impact, examining how silence influences family dynamics and the development of the next generation.
Your Oxford team brings deep experience advising multigenerational families, turning long-term goals into productive conversations, clear strategies and sustained family alignment. In partnership with your legal and tax advisors, we design tailored approaches to keep your wealth-transfer plan effective, resilient and aligned with those objectives.
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