Why South Dakota is a Haven for Trusts
The right trust instrument and trustee can extend control over your legacy for generations. But the wrong one can mean conflict, tax and legal hassles, and an early demise of the trust itself. This is why a third-party trustee, particularly one domiciled in South Dakota, can be so valuable.
South Dakota has no state income or capital gains taxes. This provides an attractive opportunity for trustees and beneficiaries, particularly for sophisticated vehicles like dynasty, community property, generation-skipping, and non-grantor trusts. This can create substantial tax savings over multiple generations.
In addition, unlike other states, South Dakota allows a third-party trustee to oversee investments and administration. This streamlines communications and processes and can eliminate fee layering.
Might these things be of benefit to you and your beneficiaries? We can help you answer that question, and I’d be happy to. This is part of Legacy Services, which is a benefit of working with a multi-family office. Make an appointment today.
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Disclosure: This document and its contents are provided for informational and organizational purposes only and are not intended to serve as legal, tax, or financial advice. Financial Gravity Family Office Services, LLC (FGFOS), Financial Gravity Legacy Services, LLC, and their affiliates do not provide legal or tax advice. Clients should consult with their own qualified legal, tax, and financial professionals before establishing, modifying, or relying on any trust or estate plan.
Any trust structuring, document preparation, or related legal services are coordinated through independent third-party professionals. Financial Gravity does not draft trust documents and does not assume responsibility for legal services provided by external providers. This document is intended to assist in the onboarding and discovery process and should not be interpreted as a recommendation for any specific estate planning strategy. This service is offered through and organized by Financial Gravity Legacy Services, LLC, a vendor to FGFOS.