The South Dakota Trust Association boasts that South Dakota is routinely ranked among the best Trust Jurisdictions in the United States. Over the past 30 years, South Dakota has become one of the most progressive, comprehensive, and competitive trust law jurisdictions in the country, as evidenced by the hundreds of billions of dollars that are now held in trusts registered in the state.
South Dakota has a comprehensive statutory scheme surrounding its trust laws that promote grantor sovereignty (the grantor’s ability to control and benefit from his or her assets over time), privacy, asset protection, and limited tax liability. Any South Dakota law touching on any of these principles is scrutinized until it is a cohesive part of the comprehensive scheme. This scrutiny, as well as innovative additions to the statutory scheme, come from the Governor’s Trust Task Force, a body of trust industry professionals tasked with making South Dakota the premier trust jurisdiction in the country.
Most of the unique and creative trust strategies for the wealthy involve trust administration in South Dakota without the necessity of having the family reside there. Nonresident individuals who wish to take advantage of South Dakota’s favorable trust laws may do so by naming a South Dakota resident trustee (whether an individual or a corporate trustee) and allowing the assets to be administered in the state. Not only can such grantors use the many innovative, statutory trust options available in South Dakota, but they may also enjoy South Dakota’s no-income-tax regime, as supported by recent state and U.S. Constitutional law.
Whether you’re a South Dakota resident or you live in another state, call a Goosmann Trust Law Counsel attorney today to discuss the South Dakota advantage and explore how a South Dakota trust can be a beneficial part of your comprehensive estate plan.