You do not have to create a trust in the state in which you currently reside. You are free to create a trust in any state that has the best laws for your needs. This is more of the case when it comes to asset protection trusts, which are much more complicated. Revocable Living Trust for probate avoidance is still best to create locally in Torrance, CA.
Articles by attorneys about one state or another being the best state to create a trust are fairly common. Usually, the state mentioned as the best also happens to be the state in which the author attorney resides, but not always.
A recent example comes from Trust Advisor in "The Nevada Advantage: Why Nevada has Become the Leading Jurisdiction for Trusts." In the article two Nevada attorneys explain why they think Nevada is the best state for people to create trusts.
This is not to pick on the authors as they are correct that there are many good reasons to get a trust in Nevada. The state is well known for its trust-friendly laws and lack of a state income tax. For more about the advantages to estate planning under Nevada law, read the original article.
The important takeaway is the knowledge that you can create your trust in any state.
You are not required to create a trust in the state where you reside. That means you can shop around and pick the state that has the best laws for your particular needs. While lay people are not expected to know which state is best, you can always learn more by discussing the matter with your estate planning attorney.
Once the attorney knows what you are hoping to accomplish with your trust, he or she might be able to suggest states most appropriate for your needs.
It might turn out to be your own state of residence. It might be Nevada. It might be some other state. The important thing is to ask and explore your options.
Reference: Trust Advisor (May 25, 2016) "The Nevada Advantage: Why Nevada has Become the Leading Jurisdiction for Trusts."