Northern Trust has set up a Delaware-based trust company to give the firm’s clients “advantages of Delaware trust law,” according to the Chi...

Northern Trust has set up a Delaware-based trust company to give the firm’s clients “advantages of Delaware trust law,” according to the Chicago-based financial services firm.

“Northern Trust was founded 116 years ago as a personal trust company on the principles of trust and reliability,” said Alison Winter, president and chief executive of Northern Trust-Northeast, in a statement.

She added: “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.”

Delaware law has distinct advantages for personal trusts. The state does not impose any state income tax on income accumulated in and capital gains earned by irrevocable trusts for non-resident beneficiaries.

Furthermore, unlike many states with laws that limit the lifespan of a trust, Delaware law does not 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.