What is a Hybrid DAPT?

A Hybrid DAPT looks very similar to a traditional DAPT, but with one important distinction: the settlor is not initially a beneficiary. Instead, the trust is established for the benefit of the settlor’s spouse, descendants, or other beneficiaries.

By excluding the settlor, the Hybrid DAPT is defined as a third-party trust and is therefore better positioned to avoid the uncertainty and scrutiny sometimes seen in jurisdictions without strong DAPT statutes or in non-DAPT states. Importantly, the settlor can be added as a beneficiary later through the appointment of a Trust Protector, providing flexibility without compromising the initial strength of the trust.

This design substantially increases the probability that trust assets will remain protected, while still offering the settlor potential access should the need arise.

Why Consider a Hybrid DAPT?

Hybrid DAPTs address one of the main challenges with traditional DAPTs: uncertainty. While South Dakota’s DAPT statutes are among the strongest in the nation, courts in non-DAPT states have occasionally expressed reluctance to respect these trusts when the settlor is also a beneficiary.

By removing the settlor at the outset, the Hybrid DAPT avoids this complication, effectively eliminating the argument that the trust is “self-settled.” For families living outside of DAPT jurisdictions, this distinction can be pivotal.

Key Benefits of Hybrid DAPTs:

In addition to building on the strong foundation of a traditional DAPT, Hybrid DAPTs provide families with the following advantages:

• Enhanced Asset Protection – Avoids classification as a self-settled trust, reducing litigation risk and strengthening defenses against future challenges.
• Flexibility – The settlor can be added later if needed, preserving potential access without compromising protection at inception.
• Reliability – Offers a structure that reduces uncertainty and reinforces the trust’s protective strength.
• Compatibility – Can be combined with other South Dakota planning tools such as Dynasty Trusts and privacy provisions for multi-generational planning.

The South Dakota Advantage

South Dakota continues to be recognized as one of the best U.S. asset protection and modern trust law jurisdictions, with statutes that support both traditional and Hybrid DAPTs. Relative to privacy, South Dakota offers a clear advantage over other jurisdictions with the strongest trust privacy and quiet trust statutes in the nation, as indicated by Trusts & Estates Magazine for many years.

In unsettled times, planning strategies that combine strength with adaptability are especially critical. Hybrid DAPTs, working in conjunction with Directed Trusts, represent a strategic planning option, offering the protective power of a third-party trust and preserving options for future flexibility while delivering direction and control to families and their advisors.

If you’d like to learn more about how Hybrid DAPTs or other South Dakota planning tools may fit into your overall wealth plan, please reach out to us via our contact form or call us at (605) 224-9189.

The post Hybrid DAPT: Enhancing the Power of Asset Protection appeared first on Bridgeford Trust Company.

  

Join us on Tuesday, November 18, 2025, from 1:00–3:10 pm (ET) for an in-depth discussion exploring the federal, state, and international tax implications of trust structures, fiduciary duties in tax planning, and strategies to mitigate hidden risks.

The program will feature David Warren, Co-Founder and Chairman of Bridgeford Trust Company, and William Lipkind, Attorney, Partner, and Chair of Wilson Elser’s Tax Planning & Controversies Practice. Together, they’ll provide valuable insights into how trusts carry complex tax consequences that can ripple across jurisdictions and generations.

This session is designed for attorneys, accountants, and fiduciary professionals seeking a structured framework for identifying, analyzing, and managing the “tax footprints” of trusts.

Key topics include:

• Foundations of trust taxation, including federal considerations.
• State and multistate tax issues, with emphasis on evolving case law.
• International and cross-border implications.
• Fiduciary duties, risk management, and emerging planning tools.
• Domestic asset protection trusts in conjunction with advanced tax strategies.

Click here to register using Bridgeford’s complimentary access code: TrustandTaxesCLE

For questions about the webinar, please contact us at info@bridgefordtrust.com. We look forward to your participation in this informative session!

The post November 18 Webinar: Trusts and Taxes – Hidden Liabilities Every Attorney Should Anticipate appeared first on Bridgeford Trust Company.

  

Bridgeford’s team is looking forward to the event! We encourage you to read on to learn more about our activity during the conference, and if you’re attending, we hope you’ll join us for a private reception on November 5 (details below).

Presentation: Exploring the INSECURE Act of 2019 and 2022

David Warren, Co-Founder & Chairman of Bridgeford Trust Company, will be speaking during the conference on Tuesday, November 4 from 11:00 AM – 12:00 PM. He will join Vincent Lackner, Jr. (Leimberg LeClair& Lackner, Inc.), Judy Lee (Goodsill Anderson Quinn & Stifel LLP), and Amy Takahashi (Legacy Tax Group) for a panel discussion titled “The INSECURE Act of 2019 and 2022: What Every Wealth Transfer Advisor Needs to Know.”

The session will explore recent developments and trends in the rules governing retirement planning, including inherited IRAs, RMDs, stretch distributions, eligible designated beneficiaries, and key reporting considerations for advisors.

Private Evening Reception: November 5

We invite you to a private evening reception, co-hosted by Bridgeford Trust Company, Cerity Partners, MGO, and Halbach | Szwarc Law Firm. Enjoy cocktails, hors d’oeuvres, and conversation overlooking Waikiki as we connect with colleagues across the legal, tax, and financial planning professions.

Date: Wednesday, November 5, 2025
Time: 7:30 – 9:30 PM
Location: Lanikai Lounge (Top Floor of the Hilton Hawaiian Village Kalia Tower)

We hope you’ll join us! RSVP here.

Visit Bridgeford’s Exhibit Table

David Warren, Doug Mikkonen (Senior VP & Senior Trust Officer), and Sydney Warren (Director of Business & Market Development) will be available at our exhibit table throughout the week. Be sure to stop by to connect and learn how South Dakota’s powerful modern trust laws—including its advanced asset protection, privacy, and dynasty trust provisions—continue to lead the industry in providing sophisticated and independent trust solutions.

If you have any questions about Bridgeford’s participation in the conference or would like to schedule a time to meet during one of the sessions or receptions, please reach out to us at (605) 224-9189 or via our contact form. We look forward to seeing you in Honolulu!

The post Bridgeford to Speak, Sponsor, and Host Reception at HTI’s 62nd Annual Conference appeared first on Bridgeford Trust Company.

  

As we explored in our “Protecting Families of Wealth from Themselves” series, planning tools such as Dynasty Trusts, Privacy Protections, Asset Protection Trusts, and Directed Trusts provide a strong foundation. Yet, for many families, the structure that brings these tools together under a cohesive framework of oversight, education, and participation is the Private Trust Company.

A Private Trust Company (PTC) is a privately held entity that manages the assets and wealth of a single family. Unlike public trust companies that serve multiple clients, a PTC is designed exclusively for one family, often those with complex assets such as real estate, businesses, artwork, luxury yachts, and aircraft.

Why Families Choose a Private Trust Company

A PTC can be an ideal option for families of significant wealth for several reasons:

• Preserve Wealth: A PTC helps families preserve and protect their wealth by leveraging modern trust law planning tools available in top-tier jurisdictions such as South Dakota.
• Plan for Succession: PTCs can help families plan for the next generation by transferring assets in a structured and transparent way, executed by family-appointed fiduciaries under the oversight of a Board of Managers. This framework creates an opportunity for families to shape the long-term stewardship of their wealth and cultural goals.
• Provide Control: By establishing clear governance policies and procedures as well as a defined “statement of purpose,” PTCs allow families to maintain meaningful control over their wealth, even amid potential family conflict, divorce, or death.
• Involve Family Members: A PTC creates opportunities for family engagement by allowing members to serve on the Board of Managers, advisory committees, or in fiduciary roles. This involvement encourages education, transparency, and collaboration around trust management, offering a level of participation not available through institutional trustee relationships.
• Achieve Cost Efficiency: PTCs can be more cost-effective than institutional trustees because they typically operate at a de minimis profit or breakeven, often making them a less expensive solution for families with approximately $500 million or more in assets.

Throughout our “Protecting Families of Wealth from Themselves” series, we’ve explored how modern trust law empowers families to preserve, protect, and guide wealth across generations. A Private Trust Company brings these concepts together—combining structure, education, and independence within a single governance model that promotes lasting family harmony and control.

Join Bridgeford in December for a live presentation revisiting the key insights of “Protecting Families of Wealth from Themselves” and exploring how families can protect and control their legacies during a time of increasing global complexity and uncertainty. Stay tuned for more details and registration information soon!

If you have any questions or would like to learn more about Private Trust Companies, please reach out to us via our contact form or call us at (605) 224-9189.

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In this episode, David Warren – Co-Founder & Chairman of Bridgeford Trust Company – sits down with Heath Goldman – President & CEO of ICON Wealth and Legacy Partners – for a conversation on how insurance planning is evolving in today’s chaotic world.

From Heath’s pivot from law school to wealth planning, to decades spent helping ultra-successful families rethink liquidity, legacy, and risk, he shares why traditional portfolio management simply isn’t enough anymore.

As they continue their discussion, Heath and David explore the resurgence of life insurance as a planning strategy rather than a product, with a deep dive into how Private Placement Life Insurance (PPLI) is reshaping tax deferral and wealth transfer. The conversation also hits on one of the most groundbreaking shifts in the planning world, particularly in South Dakota, where forward-thinking rules allow PPLI policies to hold crypto and other non-traditional assets, offering both tax efficiency and powerful asset protection. It’s a strategy more families are exploring as conversations move beyond traditional planning.

You can listen to our latest episode on Bridgeford’s podcast page, Apple Podcasts, iHeartRadio, Spotify, and SoundCloud—or watch it on our YouTube channel.

Bridgeford Trust Company’s Delivering Direction and Control podcast was developed to educate, challenge, and inspire listeners. As we interview experts in the trust planning arena, we keep listeners updated on developments regarding modern trust law and provide practical discussion on the powerful trust planning opportunities available to advisors around the country and the world—all in an effort to deliver far more direction and control to clients and their advisors than ever before. Check out all of our episodes here: bridgefordtrust.com/podcasts.

If you have questions on any of the topics discussed in this latest episode, don’t hesitate to reach out to us via our contact form or call us at (605) 224-9189.

The post Podcast Episode 51 – Beyond Portfolio Management: PPLI, Crypto, and the Next Era of Wealth Planning with Heath Goldman appeared first on Bridgeford Trust Company.