South Dakota Foreign Grantor Trust
For a myriad of reasons, including privacy and asset protection, wealthy families from around the world are seeking U.S. trust solutions. Because of the power and sophistication of its trust laws, international families are increasingly selecting South Dakota for trust situs of Foreign Grantor Trusts.
Through appropriate planning and drafting, a South Dakota Foreign Grantor Trust may be established as a “foreign” trust for U.S. tax purposes and therefore treated the same as an offshore trust, while availing itself of powerful U.S. trust laws. Failure of the “Court Test” or “Control Test,” as outlined by the IRS, will result in the trust being treated as a non-U.S. entity and therefore not subjecting it to U.S. Taxation. Since the trust is considered a South Dakota trust for legal purposes, the state’s industry leading dynasty trust, asset protection, and privacy laws may also be incorporated into the trust.
Compelling aspects about South Dakota trust law that render it the U.S. trust jurisdiction of choice for international families include that fact that the state has consistently been ranked as the top U.S. dynasty trust state and its decanting statute has consistently been ranked as the most progressive in the nation. In addition, South Dakota has the strongest privacy provisions and one of the most powerful domestic asset protection statutes in the nation, as recently observed by Trust & Estates magazine. Consistently recognized as an innovator in the trust industry, South Dakota is also one of only three states with a Community Property Trust statute, a very powerful tax planning tool, and the only state in the nation with the Family Advisor role, referred to as a “trust protector light.” Click here to view a chart comparing the leading U.S. trust jurisdictions, with a particular emphasis on these areas that clearly distinguish South Dakota as the superior U.S. trust jurisdiction.
For more information about Foreign Grantor Trusts, please click here or contact us via our contact page.
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Bridgeford Trust to Present at the Holland & Knight 2017 South Florida Wealth Conference
David Warren, Co-Founder, President and CEO of Bridgeford Trust, will be presenting at Holland & Knight’s annual South Florida Wealth Conference taking place in Miami on November 8, 2017. Holland & Knight is a global law firm with more than 1,250 lawyers and other professionals in 27 offices throughout the world.
The conference features topics including Estate Planning and Divorce, Planning for Special Assets (Aircraft, Yachts, Bitcoin), and Issues in International Wealth Planning. David will be presenting with Stewart Kasner, Kevin Packman, and Leon Fresco of Holland & Knight, on a panel entitled Issues in International Wealth Planning and will examine factors bringing international families to the United States for trust and wealth planning as well as the vital importance of selecting the proper trust jurisdiction in the planning process.
If you are interested in attending this conference, you can click here to register and if you have any questions, please contact Bridgeford Trust via our contact page.
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South Dakota Again Ranked as Top U.S. Dynasty Trust Jurisdiction
For the 6th consecutive year, South Dakota is again ranked as being the top Dynasty Trust state in the nation while Delaware, long considered a top tier trust jurisdiction, slips again in the rankings to the 8th position. A Dynasty Trust, not available in all states, is a powerful planning tool that essentially allows a trust to live in perpetuity (forever), therefore never subjecting the assets to federal estate taxation through a forced distribution. South Dakota was the first state in the nation to abolish the Rule Against Perpetuities in 1983, clearing the way for the creation of the first Dynasty Trust.
The rankings chart, an annual ranking of Dynasty Trust states from across the country published by Nevada attorney Steve Oshins, is an excellent resource for advisors and clients because of the methodical and objective approach to evaluating the factors that impact the viability of Dynasty Trust states, such as whether they have an asset protection statute and how effective it is in comparison to other states. In addition, the chart considers state taxation on trusts and whether the state has a decanting statute. The chart accentuates the vital importance of considering alternative trust jurisdictions in the wealth and trust planning process to ensure that clients are availing themselves of the most progressive trust laws in the country, particularly in the area of Dynasty Trust formation, which continues to be a very hot topic.
A very important factor to consider relative to whether a Dynasty Trust state is the best for clients, which is not considered in Steve Oshins’ chart, is privacy. States have different privacy provisions protecting information contained in a trust from becoming public. Most states have no privacy provisions and in Delaware, after 3 years, sealed trust information can become public. South Dakota is the only Dynasty Trust state that has a total seal on trust information forever, prompting Trust & Estates Magazine to observe, “Of the top tier trust jurisdictions, South Dakota has the best trust privacy laws.” Clearly, this is also an important factor to consider when determining where to place a trust in the wealth planning process. Click here for more information about South Dakota’s powerful privacy provisions.
Other important factors not considered in Steve Oshins’ chart are the availability of the Special Purpose Entity, as well as the newly created Community Property Trust and Family Advisor, powerful planning tools not available in other U.S. trust jurisdictions that deliver far more control over trust creation and administration to settlors of trusts, beneficiaries, and their advisors than ever before. Learn more about these very progressive and cutting edge trust laws offered by South Dakota by clicking here.
Steve Oshins’ chart can be viewed by clicking on the image below.For more information regarding Dynasty Trusts, please contact Bridgeford Trust via our contact page.
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Join Us! Bridgeford Trust to Host SDTA’s Fall Forum Kick-Off Reception
Bridgeford Trust is hosting a cocktail reception in advance of the South Dakota Trust Association’s Fall Forum next week and we would love to see you there!
As we highlighted in a previous post, this first annual Fall Forum is scheduled for October 26-27 at the Sheraton Sioux Falls & Convention Center and is presented by The South Dakota Trust Association, in coordination with the American Bankers Association. Bridgeford Trust is a sponsor of this forum and you can learn more about it and register by clicking here.
For those of you who are attending, we invite you to join us for a cocktail reception in advance of the Fall Forum on Wednesday, October 25th from 5:30pm – 7:30pm at The Country Club of Sioux Falls. Click on the image below for more details.
RSVP today to Melissa Roberson at firstname.lastname@example.org. We hope to see you there!
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Bridgeford Trust to Sponsor the SDTA’s Fall Forum
Bridgeford Trust is excited to be sponsoring the South Dakota Trust Association’s first annual Fall Forum! The forum is scheduled for October 26-27 at the Sheraton Sioux Falls & Convention Center and is presented by The South Dakota Trust Association, in coordination with the American Bankers Association.
The forum’s program will examine various aspects of South Dakota planning, updates from the South Dakota Governor’s Trust Task Force, the international communities’ interest in South Dakota, and will include nationally recognized speakers.
We encourage you to consider attending this dynamic forum that offers attendees Continuing Education credits and includes a great opportunity to network with other professionals in the trust industry.
For more information on the program and to learn how to register, visit the forum website by clicking here.
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