---
title: "In trust establishment documents, what should be the answer to the question, \"The document is governed and construed by the laws of:\"?"
description: Should it be the state where you are establishing the trust, or the business place?
---

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# In trust establishment documents, what should be the answer to the question, "The document is governed and construed by the laws of:"?

## Should it be the state where you are establishing the trust, or the business place?

![](https://info.lightyeardocs.com.au/hubfs/image-png-Oct-03-2023-07-38-05-1293-AM.png)

By way of general comment, the governing law of the trust is what you choose it to be and what the deed will mention. It is when this is not mentioned in the deed that other criteria such as State of establishment of the trust or the place of business comes into picture to determine the governing law.

Moreover, you may use any state as the governing law, but people usually use the residing state of the trustee. The best thumb rule to follow is which state would be most convenient if there was a litigation. Also the implication of the governing rule is that the laws of that state will apply to the Unit trust such as stamp duties or any other state specific laws. 

 

*Please be advised this is general information only, and is not to be taken as legal advice. If you would like more information, or have a legal query, please contact LY Legal through the Surge App.*

*Last Reviewed: 08/08/2025*

*Last Updated: 08/08/2025*

 

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