It is customary for the indenture to have its situs (e.g. location) in the grantor's state and thus be subject to those state laws; however, the trust is a private contract and thus the situs may be placed anywhere deemed worthy for reasons of privacy, less frequent reporting, state trust laws and more. Do note that a (very) few banks will require the trustee to be in the state of the situs to open a bank account - it is best to avoid these types of banks.